If you’re collecting government benefits, you may be wondering which payday loan lender is best for that situation. Contrary to popular belief you don’t actually need to have a job in order to get a payday loan. You simply need to show that you receieve regular payments, and be able to prove that you’ll be receiveing them for the forseeable future.
Best Payday Advance Companies for People on Benefits
Most payday loans are regulated by the state that you reside in, so it doesn’t really make too much of a difference which one you go with, as their fee structure will be set by the laws of that state. What separates payday lenders from each other is how good their customer service is, and whether or not you like doing business with them.
100 Day Loans
If you’ve never gotten a payday loan with your benefits before, this is a great place to start because it only involves one application. What happens is you apply once, and they search their database for lenders that lend to those on benefits. This saves you the time and hassle of weeding out companies that don’t lend to people on benefits. Once they match you with the proper lender, their system is designed to present you with the best rates, and the highest limits available.
This is a great offline company to deal with, especially since they welcome those with benefits with open arms. Just be sure to bring in your most recent benefits statement, which should show that you’ll be receiving your benefits for the next several months. You should also bring in all the other necessary items, including your bank statement, your Social Security card, your checkbook, and Driver’s License or other government issued photo ID. Be sure to call ahead and double check this list to make sure there aren’t any snags during the application process.
Customer Service Is Key
The payday loan industry is super competitive, and each store is trying to outdo their competition. They definitely want your business, but some of them don’t hire the right people so you may have an unpleasant experience during one of your transactions. You get a chance to move your money each time you pay back your loan, so you never have to feel like you’re obligated to re-loan from the same lender if you’re unhappy with their service.
It’s easy enough to pay back your loan, and visit another lender, or even another branch of the same company. Dealing with positive, friendly people when taking out a payday loan is very important. Also, if you ever fall behind on paying your loan off, you’ll want to have established a rapport with the people there, even getting on a first name basis with them, so that they have a face behind the name when they are making collection attempts.
Monthly Due Dates
They say that payday lenders are predatory lenders because of the wile APRs they essentially charge, but by receiving your benefits monthly, you’ll have monthly due dates, which is twice as much time as those collecting a bi-weekly paycheck, which lowers the APR down a bit. It’s still not a very good idea to get involved with payday loans, especially when you’re on a fixed income and the price of everything keeps going up. If you end up in the hole, a payday loan typically will keep you in it, and make it deeper.
Maybe a friend of your recommended getting a payday loan with your benefits, but this is not a very good idea. Unless you are aware of a sum of money headed your way that will allow you to pay off your loan and still have money to make it through the month, you should avoid them at all costs. What usually happens is the first of the month comes around and you have to pay back your loan, but now you don’t have enough to make it through the month again, so you’ll end up re-loaning before your next payment comes in. This adds anywhere from $30 to $75 or more to your monthly expenses, and you nothing to show for it.