Feb 17 2015
If you are on benefits or a fixed income and you need quick cash assistance, payday loans are an option worth taking into account. Loans for people on benefits can be difficult to find, especially since, in recent years, many lenders have tightened their criteria for lending. Loans and credit cards are harder to come by, which makes things extremely difficult for people with less than good credit, or those that survive on benefits such as social security, disability, or welfare.
Even if your need for benefits is temporary or short term, due to financial hardship caused from job loss, traditional lenders will likely consider you high risk and deny your loan application.
This can be difficult to face for someone who used to have a good credit history and an endless amount of credit available to them. Fortunately, for people with bad credit or surviving on a fixed income, there is still an opportunity to seek help from a lender that offers cash loans without a credit check.
Finding a loan
Payday loans are short term same day loans that can help you out when you need them the most. This is extremely helpful for people that find themselves in a financial crisis and cannot borrow from a traditional lender.
While the convenience of these loans comes with a nominal fee, if you have no other options, the interest rates and fees associated with the loan can be better than nothing.
Finding a payday loan depot lender to borrow from is easier than you think. Depending on where you live, there are probably a number of payday lenders located in your community.
Over the years, the convenience of payday loans has become quite a trend. Whereas, in the past, many bad credit or no credit lenders required a car title to lend money, payday lenders do not require any type of collateral.
Payday loans can be approved with proof of identity and income. This means that, if you are receiving money from disability or social security, this qualifies as your source of income.
If you do not have transportation, but have access to the Internet, there are also payday lenders located online that can simply deposit your loan into your bank account. This can generally be done in twenty-four hours or less.
Even if you do have access to transportation you can still seek the services of an online lender. Another convenience of online lenders is the ability to quickly search a number of lenders without leaving the home or wasting precious gas. Let’s face it; no one wants to waste gas if they are already in a financial bind.
Researching online lenders comes at an advantage. This allows you to evaluate and compare the interest rates of each lender and seek out the one with the cheapest fees.
You can also read their customer reviews to ensure there are no hidden costs and fees. While it can seem risky to borrow money from someone you cannot see, customer reviews are an excellent source for evaluating reliability.
What to consider
If you are receiving benefits, it is important to remember that payday loans can be a risk. Your income is not likely to change, so you only want to borrow money in case of an absolute emergency.
Borrowing money frivolously can lead to debt and worse financial problems. Do not attempt to borrow more than you really need and pay it back as soon as possible to avoid paying any additional fees.
You should also consider the fees associated with the loan versus the cost of over drafting your account. Many banks and credit unions offer overdraft protection and allow you to over draft your account up to $400 or $500 dollars.
Payday loans are available to people who rely on benefits, but should only be used as a last resort.