Can I get a payday loan if I am on Social Security?
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UPDATED: Oct 25, 2012
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Yes, borrowers can still obtain a payday loan if they are on Social Security. Many cash advance borrowers are not working due to retirement or disability. Social Security provides these people with money that is not always adequate, hence the need for cash advances.
While payday loans articles often speak exclusively to employed borrowers, the fact remains that as the baby boomer generation continues to retire, more and more of its members will begin to rely on Social Security for income.
Even though payday loan lenders do not require that a borrower have a job, they do require that an applicant have a source of income. Fortunately, Social Security qualifies as a source of income. As a result, lenders will likely have to view a copy of the Social Security award letter in order to confirm the source of income. As with all cash advances, a copy of the borrower’s bank statement will also be necessary to confirm if the borrower even has a record of income and savings.
Due to the plethora of online payday lenders, a large number are willing to work with applicants that are on Social Security. However, prospective borrowers must remain aware that not every lender will be willing to work with them. Borrowers may have to shop around between different lenders before finding one that caters to customers that only have Social Security as a source of income.
Applicants who have Social Security as their only form of income may be hesitant to accurately fill out an application form. This is ill-advised since falsifying information for a loan is a form of fraud. Being upfront and open with a lender is the surest way to obtain a payday loan and avoid other problems.
Borrowers who have Social Security as their only means of income must be cautious when borrowing any money, especially payday loans. As with all types of short-term loans, cash advance borrowers should be aware that this form of financing carries high interest rates. Additionally, the loan must be repaid within a matter of weeks.