Payday Loans for Retired
Payday loans can help in a pinch. If you're retired and have a bill that cannot wait until your next monthly Social Security payment, a payday loan can help. Don't rush into the process without researching what are the best options for payday loans for retired people.
Payday loans do not require collateral. They don't pull credit reports. You do need to have a steady source of income. If you're retired, Social Security income qualifies for payday loans for retired people. You might also have 401K income or pensions that help you qualify for a payday loan.
How a Payday Loan Works
It does cost money to take out a payday loan. Most companies charge a fee for every $100 that's borrowed. Say you borrow $1,000 and the fee is $10 per $100. You'll pay $100 in fees in order to borrow the $1,000. To repay the loan when the loan repayment date arrives, you pay $1,000 plus the $100 in fees.
Payday loans are easy to obtain. You can apply for a payday loan online and don't need a lot of paperwork. For a senior citizen who no longer drives, the online application helps. Money is sent to your bank in a matter of hours or a business day with some companies. You usually don't have to provide much more than your SSN or tax identification number. You'll provide a date of birth, legal address, and bank account information for repayment.
There are scams out there. Make sure you choose a reputable lender. Use the Better Business Bureau to research a company before you apply. We have a list of legitimate payday loan companies that offer payday loans to retired people.
Use Payday Loans Wisely During Retirement
If you look at the numbers, payday loans have a high APR. It's a little misleading to think of it that way, however. An APR calculates the interest based on a year. Most payday loans require repayment by the next payday, usually two to four weeks. As a result, say you borrow $1,000 and pay $100 in loan fees. That is 10 percent of the loan amount and not the 300 to 400 percent that is seen with the APR.
With that in mind, if you don't pay on time, additional fees are slapped on. This will drive up the amount you borrow. Make sure you borrow what you will really be able to repay.
Payday loans are not meant to be held over months or years. They're an option for borrowers who need cash before the next installment of Social Security arrives. They're for situations like emergency medical expenses. You need to pay for a new medication now and the pharmacy isn't about to accept an IOU. You won't have the Social Security payment for a couple of weeks, and you don't want to wait for this new medication to treat a health condition. Payday loans can help in situations like that.
If you need cash now and can't wait for your next month's retirement income to arrive, we can help you find the best payday loan for retired people. Fill out a quick form to get started.