SSI Payday Loans
Every year, millions of people who live in the United States spend billions of dollars on short-term loans. While the premise of a payday loan is typically to pay the amount owed, plus interest, by the time of a borrower’s next paycheck, those who have alternative forms of income may be eligible to apply for a payday loan as well.
In the past, those who struggled with paying weekly or monthly living expenses from social security income, disability, veteran’s compensation, or other government benefits have often had few recourse options. But with online loans, Supplemental Security Income (SSI) recipients and others who depend on government checks may have more financial options.
Which Lenders Will Provide Loans for SSI
Lenders typically require the following from applicants:
- A record of the applicant’s identity in the form or a passport or driver’s license as well as additional documents that confirm that the applicant is a United States citizen or resident
- An active bank account
- Documentation that confirms income
Any individual who is seeking payday loans specifically for SSI recipients must also present forms of the above requirements when applying.
Some lenders may have specific conditions and requirements regarding payday loans for self-employed workers. Individuals who are self-employed or who are SSI recipients may have difficulty getting approved for payday loans because providing proof of income may be difficult, as the revenue being received may come irregularly or in non-traditional manners.
Consumers who do not have a bank account or who receive income from alternative sources are still eligible to apply for shorter-duration funding. Alternative forms of income may include:
- Social Security benefits, welfare, VA benefits, disability payments, and other entitlements
- Self-employment income
- Royalties for intellectual property, such as books, songs, etc.
- Trust fund payments Income from investments
- Child support and alimony payments
Consumers in such situations may be able to present yearly tax forms or bank statements that show monetary flow. Bank statements that show a pattern of money being deposited into a borrower’s account may show lenders that the person in question will have adequate funds for loan repayment.
What if I Have Bad Credit?
Borrowers should note that lenders will, in fact, check an applicant’s creditworthiness as well as their debt-to-income ratio in determining loan approval. Advertisements that offer “no-credit payday loans” or “payday loans for bad credit” are false and misleading.
Consumers should also consider the fact that short-term loans often have high APRs and steep rollover fees. In fact, according to a 2016 report from the Center for Responsible Lending, short-term loan interest rates in some states can cost as much as 662%, while the average APR for credit cards is only 17.55%.
Such high fees can force borrowers into a cycle of debt and into further financial instability. Experts advise that borrowers only opt for shorter-duration funding if they can afford one.
How Quickly Can I Get The Money?
While same day payday loans are typically not possible, if an applicant is approved, funds can be deposited into their account within two to three business days.
Lenders and borrowers also usually sign an agreement that details loan terms, conditions, and repayment schedules.
What Restrictions Are In Place?
Each state is responsible for its own payday loan laws and restrictions. State laws determine APR limits as well as how long a loan can be taken out for and the maximum loan amounts that can be borrowed.
Some states have banned payday lending altogether due to loan rate caps. Individuals in such states can opt for installment loans instead.
Finding SSI Payday Loans
Our service can help consumers find the most appropriate payday loans for them, based on their needs. We work with trusted and reliable lenders. Individuals must be 18 years or older and must be U.S. citizens or permanent residents in order to fill out our free and secure questionnaire.