When people are in need of quick financing they often turn to payday loans. By doing so, individuals who often don’t have access to other forms of financing will find themselves capable of obtaining the funding that they need for a variety of different financial emergencies such as to cover an medical emergency or to lease a car to get to and from work. Understanding who is eligible for these payday loans is important and can help to guide a decision regarding whether they are the right choice for an individual in need of financing.
What are Payday loans
Quite simply, payday loans represent an advance on your next paycheck. An payday lender will extend an individual a loan that is being secured by their next paycheck and these payday loans are typically short term in duration, typically less than a month. The payday lender does not assume a lot of risk as the loan is often assigned immediately and provides fees and interest rates that are related to the credit risk and score that an individual has. Payday loans do not require extensive time to apply for and qualify for and often can be handled quickly and without much extensive delay, which is part of the point. In general, payday loans offer quick money for those in need of cash fast and often serves the portion of the population who does not have access to other forms of financing.
Do SSI recipients qualify for payday loans
SSI recipients obtain regular checks from the government often in connection with a disability that they have. These individuals will often have the same immediate cash needs that anyone has and will need to obtain quick cash to finance their lifestyle and emergencies that come up. Since an SSI payment is not a paycheck, many will question whether ssi recipients qualify for these loans. The short answer is that since SSI payments are regular and predictable cash flow, they certainly will qualify for a payday loan and offer additional assurance to a lender that the funds that they are paying will be able to be paid back. Those who are issuing payday loans prefer ssi recipients as they have a lower chance of default than other borrowers and this helps to take the risk out of the loan and provide financial support for them.
Should an SSI recipient take a payday loan?
SSI recipients should take a SSI payday loan when it offers the best balance between short term financial flexibility and interest rate, depending on a myriad of factors. Some individuals are better serviced by other forms of credit while others do better with payday loans. The facts and circumstances surrounding the individual will help to determine the best option for an individual.