If you’ve ever found yourself asking, “Can I get an advance on my Supplemental Security Insurance check?” the answer may surprise you. Although many lenders only work with people who have traditional paychecks, some offer cash advances for Social Security recipients. If you rely on your Social Security payments to get by, these advances might help you get through an emergency or a tight week.
Keep in mind that payday loans for SSI recipients come with a significant risk of further debt. Below you’ll find other options and what to consider to protect yourself.
Can I get an advance on my SSI check?
For many retirees, security comes in the form of their monthly Social Security benefits. But if a medical emergency or sudden oil leak pops up, you can’t always wait until your next check arrives. If you don’t have other savings to cover an emergency, you’ll want to consider other sources of fast cash.
That’s the moment to consider cash advances for social security recipients. Many lenders recognize SSI checks as an acceptable form of income to get a loan. However, many impose restrictions on your ability to borrow. Worse than that, some traditional cash-advance lenders engage in predatory practices that lead to high fees and interest charges on loans for SSI recipients.
If you’re searching for payday loans for SSI recipients, keep the following tips in mind:
What about work verification?
Quick access to money when you need it can create a sense of security. Unfortunately, many organizations don’t recognize SSI deposits as eligible income. If SSI is the bulk of your income, you may have to do the extra work to find cash advance lenders willing to work with you.
How long before you have to repay a cash advance?
Most of the time, you are expected to repay your cash advance on your next payday.
You’ll absolutely want to make this a priority since this will prevent you from getting caught in a trap of increasing debt. Payday loans are notorious for high APRs that can quickly turn a small debt into spiraling out of control. At worst, you could find yourself having to pay twice as much or more than what you initially borrowed. In general, it’s advised to be wary of cash-advance apps for Social Security recipients.
Tips for getting a cash advance for Social Security recipients
If you’ve never gotten a cash advance for Social Security recipients, you may be unsure how to proceed. Let’s unpack a few important tips.
Get only what you need
When you apply for a cash advance or a payday loan for SSI recipients, you may qualify for more than you need. While it’s tempting to take the extra cash, remember that you’ll have to repay every penny usually with high interest and fees. As such, you should only accept an advance that’s enough to tide you over until payday.
Pay back on time
If you don’t repay your payday loan for SSI recipients, you may have to pay fines, fees and rollover penalties. This varies by lender but is never free. The longer you wait to repay, the more charges you’ll rack up.
Eventually, the lender may ding your credit score, which indicates to future lenders that you’re a liability. Some lenders may even take you to court. Fortunately, you can avoid this kind of mess by repaying your loan in full and on time. Like above, take out only what you can repay on time.
Make sure they are a legit lender
Many loans today originate online. While borrowers enjoy the convenience of getting a loan from their living room, it’s also easier for fake lenders to pose as legitimate operations. Watch out for scams that have poor or no reviews, require “advance fees” or operate shady websites.
You can get a cash advance from an app, but be sure you do it safely. Be especially cautious of lenders offering Social Security disability payday loans or payday loans for SSI recipients, as scammers tend to target older people.
Traditional cash advance lenders
Unfortunately, many cash advance practitioners engage in predatory practices. For instance, they may charge APRs as high as 400% or even 600% in some cases. Certain payday loans for SSI recipients also take the form of title loans, which usually involve you agreeing to give up your car if you can’t pay.
A 400% APR sounds high, but they make it look like a reasonable fee. If you take a $400 payday loan for 14 days, and it has $90 in fees ($22.50 per $100), you’ll pay a 586% APR. If the fees were only $40, you’d still be paying a 260% APR. In contrast, even credit cards with the highest interest are only 36% APR.
Final thoughts on getting a cash advance for Social Security recipients
Cash advances can help you get by when you need them the most. The problem with traditional payday loans is the cycle of debt they often create. If you can’t pay back the full loan, you’ll end up paying more in fees until the next payday. But that means even more debt — a cycle that is difficult to break.
Retirees shouldn’t have to choose between their financial future and current emergencies. Make sure to weigh the potential risks thoroughly and refrain from borrowing more than you can realistically pay back. It’s also helpful to explore other ways to access extra cash. Consider asking friends, family, selling some items or even dipping into your savings.
Can I cash out my Social Security early?
You can cash out Social Security from age 62 onward, but you will receive 25% to 30% less than your full Social Security benefit. You can access full Social Security benefits from age 70. You can access the U.S. government Social Security website to calculate your benefits and the impact of withdrawing Social Security early.
Can payday loans take you to court?
Yes, if you don’t pay back the payday loan, the lender or a debt collector can sue you for the money owed, even in the case of payday loans for SSI recipients.
Can payday loans take your Social Security?
Social Security cannot be garnished to pay debts from payday loans, credit card debts, medical bills or other debts. Payday loans can’t take your Social Security, although they can sue you for outstanding debt.