Payday Loans for the Disabled

 

If you are disabled and receiving SSI or SSDI, you may wonder if you are eligible for a payday loan. The short answer is yes, you are eligible if you meet the requirements of the loan application. Payday loans can be an option for those who are receiving government benefits to live on, particularly since those benefits are only paid once a month. Here are a few tips for you to think about if you need immediate money for a financial emergency or to bridge the gap for bills that are due right now.
Tip #1 – Understand What a Payday Loan is First
Payday loans have very simple qualifications. You need a steady, provable income. You need a bank account and you need to be able to prove who you are with a state-issued identification. You also need to be over 18. Those are the basic requirements.
Payday loans do not require that you get a credit report, which can be attractive if you are receiving SSI or SSDI payments, since many traditional lenders will not extend credit to you. Also, if you have bad or poor credit, then payday loans can be tempting.
Payday loans are tied to your next benefit payment, so loans are usually paid within seven to 30 days of the loan payment. For those who receive government benefits, this can be a disadvantage because loan rates and fees are tied to how often you are able to pay back the loan if the loan is due more than seven days from the date the loan is funded.
Tip #2 – Talk to Potential Lenders First
Not all payday loan companies will offer loans to recipients of government benefits. Before you take the time to fill out an application and get your hopes up, take the time to call a potential lender first and ask what their policy is on this topic.
Some lenders will limit the amount of the loan to $100 to $500 at most for individuals who are on SSI or SSDI. This is usually because there are state limitations on the principle amount of the payday loan.
You may also be required to fax a copy of your award letter to the payday loan company if your state requires it.
Tip #3 – Do not be Pressured
Some predatory lenders will attempt to pressure people into taking loans in amounts higher than they need or want. This can result in higher interest rates and higher fees being charged on the loan. If you enter a situation where you feel pressured to take out a higher loan, then leave that payday loan company and choose another.
Tip #4 – Comparison Shop
Not all payday loan companies are the same. Some will charge lower interest rates than others and some will charge higher fees than others. Compare at least three potential payday loan companies for rates and fees and select the one that has the best terms for your needs.
Payday loans can be extremely tempting if you are on a fixed income, such as SSI or SSDI. Before you take out a payday loan, make sure you understand the loan terms and are getting the best rates for your money.