Being on Supplemental Security Income can lead to various financial options being unavailable. Does that mean all of them are? Payday loans can be the favorable option in an emergency, but is it possible to get one while on SSI?
It Depends on the Company
In short, there isn't a yes or no answer. It really depends on the company. The majority of firms will allow you to take out a loan, but the amount you take could be limited. You will also still be subjected to the same fees that those with a regular income would need to pay.
There are no credit checks on the loans, but the firms will be interested in your income. They will want to see proof of regular payments into your bank to know that you can cover the money you owe from the payday loan, including the fees.
It Won't Affect Your SSI Benefits
Taking a loan out won't affect your benefits for that month. The money doesn't count towards the amount that you can earn to be eligible for the loan. However, if you don't spend the money and allow it to roll into the next month, it will be counted towards that month's income. You may find that you lose your benefits if you go over the $2,000 for single people/$3,000 for couple's amount.
You will need to check the details with the benefit agency to find out if your loan will count. Chances are, if you are taking out a payday loan, you will spend the money within the month, so it won't affect your SSI payments.
It Still Involves Fees
Be aware that your loan will still involve fees. You can be at a disadvantage with payday loans, since the fees are charged on a bi-weekly basis. Since SSI payments are made once a month, you could find yourself subjected to two lots of fees before you have the income to pay the money back. You may be able to find firms that are willing to do monthly fees instead. You will need to pay back the full loan and the fees to avoid extra fees in the next month.
Before you take out a payday loan, check all your options. These types of loans are available for those on SSI benefits in many cases, but you will need to check with specific lenders. It's also worth looking into fees to find a lender who will work more in your favor, such as adjusting the payment schedule to work with when you actually get money. Visit websites like http://www.paydayexpresscashadvance.com for more info.