Short term lending has become a new revolution in the loan industry. All over the world, individuals are rushing to get short term loans to fulfill their financial emergencies. According to the economic analysis carried out in the United States, billions of dollars are spent providing short term loans to the citizens every year.
Before the evolution of short term loans, individuals with long-term loans had to find various ways to cater to their expenses. With the emergence of online loan platforms, individuals who receive their income from the government and recipients of Supplementary Security Income (SSI) are now able to access multiple financial options.
Requirements for the SSI recipients to obtain payday loans?
Before obtaining a short-term loan or an SSI payday, most lenders will require you to verify your identity and creditworthiness before qualifying you for the loan. Documents needed for verification include:
While some lenders find it very difficult to approve loans for the self-employed and SSI recipients, other lenders have diversified a way of reaching out to the SSI recipients and self-employed individuals whose income flow is not specific compared to other individuals with a regular and certain flow of income.
The other requirement for getting a short term loan is to ensure that one has an active bank account. This requirement, however, does not limit individuals with no active bank account from obtaining short-term loans. To substitute the bank account requirement, individuals can opt to use other means of income, such as trust fund payments or alimony and child support payments. For such documents to be certified for the loans, individuals applying for the loan will have to provide a verified income flow report such as a bank statement before they are approved.
Credit Score Status
As a borrower, it is vital to note that your credit score will always affect your loan lenders’ access. Credit scores determine your creditworthiness and how likely you are to pay up the loan when it falls due. Another vital point to note is that short-term loans accrue very high-interest rates that tend to push borrowers into debts, thus altering their financial stability.
Accessibility and restrictions of Payday loans
Payday loans take around two to three business days to be available into your bank account once they are approved. Before being approved for the loan, both the borrower and lender will sign an agreement detailing the loan repayment terms and the loan terms and conditions. Payday loan restriction in the United States is covered by state laws and not the government laws. In the effort to cushion their residence from the high loan interest rates, some states have taken it upon themselves to ban payday lending forcing their residents to seek alternative means such as installment loans.