What is a payday loan?
At some point in the life of average America, one cannot cater to their daily expenses for several reasons. Emergencies, unexpected costs such as car and house repairs, and mortgage costs, among others, maybe a contributing factor to ruining your budget so that you have no or less money to run you throughout the week or month. What happens next? Will you borrow from family, co-workers or friends? That can be embarrassing, right? Don’t worry. That is where payday loans come in. Payday loans are short term loans picked by individuals from lending organizations so that they can sort their weekly or monthly bills and pay them up in their best payment cheque. The loans come in very handy to most people who need to pay up a certain amount of money before receiving their income. For example, if you are required to pay your mortgage fee in the next four days and your salary is due in two weeks, what do you do? Taking a payday loan would save the day.
Do people receiving social security benefits get payday loans?
In the past, people who received supplemental security income had a hard time getting a loan. Today is different. The SSI recipients and other people employed by the government have financial services open to them. Different lenders have different terms and conditions for people under the SSI who seek to secure SSI payday loans. Even then, all the lenders require that the applicants of the loan need to provide the following;
- An identity card, passport or a driving license as proof of identity. You qualify if you are a US citizen or permanent resident.
- A pay slip or any document that shows you have an income.
- A bank account. The bank should have proof of activity. If the recipient does not have an active bank account, they can produce their social security benefit entitlement.
If your credit to debt ratio is above what is termed normal, it will be deplorable for you since the lender will be less willing to grant you a loan. The lenders also check whether you have a good credit score. Nobody wants to risk their money to a person who might not pay it back.
Payday loans take less time to process. Within three working days, the recipient can get the loan if they qualify. It is also crucial for all SSI beneficiaries to know that payday loans tend to accrue more interest when they rollover. If you said that you would pay in two weeks at the application, stick to the agreement or else you will either pay a huge interest or accrue bad debts. Each state in the US has its laws governing the lending of payday loans, and some have been banned from lending due to high loan rates.