With thousands if not millions of households hard pressed to make the end of the month without collapsing financially, the pay day loan has taken on most of those who find themselves in desperate straits. There have been various arguments whether these kind of loans are actually extortion or whether they are really fair borrowing at market rates.
Several states in the US advise those who take out a pay day loan to seek credit counselling before doing so. These states include: Maine, Michigan Mississippi, Missouri and Nevada ask those who are taking out pay day loans to seek credit counselling before entering into pay day loan agreements with specific information and requirements.
Other states such as Illinois, Indiana Iowa, Kansas and Kentucky also advise customers with credit difficulties to check what agreements they enter into before committing themselves to pay day loan agreements. Some of these states also offer credit counselling – this is an important aspect for anyone who takes out such a loan as the end result could end people to enter a spiral of debt that will rise continuously and will not allow them to pay the loan back in a reasonable period of time.
States such as Idaho, Illinois, Indiana, Iowa and Kansas operate a check n go policy which verifies customers before they can get hold of a pay day loan. They also currently operate party lender terms that are quite rigorous. Texas, Utah, Wisconsin and Wyoming offer terms for up to six month payday loans.
Once again it is important for all pay day loan customers to check their online term loan difficulties and they should also seek credit counselling if they find themselves in difficulties. One should also ensure to check accounts for short term pay day loans A checking account is essential for a quick short term financial state run. Several states run centers for specific information Pay day loans can be expensive rates and one should check terms for long term financial solutions before entering into any loan transaction.
What is a 'Payday Loan'
A payday loan is a type of short-term borrowing where an individual borrows a small amount at a very high rate of interest. The borrower typically writes a post-dated personal check in the amount they wish to borrow plus a fee in exchange for cash. The lender holds onto the check and cashes it on the agreed upon date, usually the borrower's next payday. These loans are also called cash advance loans or check advance loans.
Although the federal Truth in Lending Act requires payday lenders to disclose their finance charges, these establishments have gotten a bad reputation for their predatory lending practices. Most borrowers using payday loans have bad credit and low incomes. They may not have access to credit cards and are forced to use the service of a payday loan company. Even if the borrower feels the fee may be fair ($17.50 per $100 for seven days), that translates into a rate of more than 900% on an annualized basis. Most loans are for 30 days or less and can be rolled over for additional finance charges. Loan amounts are usually from $100 to $1,500.
How Does a Payday Loan Work?
Payday loan amounts are usually very small and less than $500.00. Payday loan businesses operate under a wide variety of titles, and may take postdated checks as collateral. Generally they charge a large fee for the loan, which puts the interest rate very high, some rates are as high as four hundred percent. Many states are working on passing regulations to help consumers that rely on these loans.
Payday loans are easy to apply for. The way the business make money is through the fees and the fact that many of the customers come back in again and again The business justifies it as offering a much needed service to people who may need a little help from time to time, but the amount that it makes on each loan is very high.
What Are the Dangers of a Payday Loan?
Payday loan businesses cause customers to become reliant on them because they charge large fees, and expect quick repayment of the money.
This can make it difficult for a borrower to pay off the loan and still be able to meet monthly expenses. Many borrowers have loans at several different businesses, which worsens the situation. If you rely on the loans, you will have less to spend on what you need each month, and eventually you will be behind almost an entire paycheck.It is difficult since these are such short-term loans and the fix it provides is only a temporary one.
Can you Get Payday Loans Using an SSI Direct Express Card With No Bank Account?
Stop to consider the fact that 7 out of 10 Americans report they live paycheck to paycheck. That's a lot of people who pay out as much as they earn. It's not surprising that so many people are financially strapped when it comes to emergency expenses. If you're not working because you're receiving benefits from the government, that emergency expense can really pose an issue. When you don't have a bank account it can seem downright impossible. One option is to research payday loans using your SSI Direct Express card.
Not everyone trusts banks with their money. Beyond the fees that many don't feel are fair, financial collapses in the Great Depression and the financial collapse in 2008 has some wary of trusting banks. Instead, they receive their SSI through a government-approved debit card. This leads to people wondering if you can get an SSI payday loan or disability payday loan with no bank account. With the Direct Express debit card, payday loans are possible.
In order to qualify for payday loans with an SSI debit card, you need to first have the card and be getting your SSI direct deposited to that debit card. Loans using SSI Direct Express card information will be repaid by placing a charge on that card on the day the repayment is due. It's your responsibility to ensure there is enough money there when the payment is deducted. If not, the payment would be declined and you'll face penalties.
Am I Charged SSI Payday Loan Fees?
Direct Express card loans without a bank account will have fees. Look closely at those fees and make sure you're okay with the loan fees and repayment terms. While they can be high, it may be a better option than ignoring an emergency. If your hot water heater quits a week before your SSI payment, borrowing the money for a brief amount of time is better than ice cold showers and washing dishes in cold water.
While the answer to “Can I get a payday loan with my Direct Express card?” is yes, it's up to you to make sure it's a valid option for you. You need to ensure you can pay Direct Express card loans back on time.
Can't I Just Borrow Money on My Direct Express Card?
You cannot just borrow money on your Direct Express card. Comerica Bank handles these cards for the government. They are only debit cards, so there's no line of credit attached to them. You can't charge more than is currently available as a balance. This is why people turn to Direct Express debit card payday loans. The loan amount you borrowed from an SSI payday loan company is withdrawn from your Direct Express card without needing a bank account number.
What Forms and Paperwork Do I Need In Order to Take Out Direct Express Loans?
If you're ready to apply for payday loans with an SSI debit card, there are a few things you'll need to share with the Direct Express loans company. Have the Direct Express card number available. Provide your date of birth, SSI, and contact information. The SSI Direct Express loans company may want to see proof of income, such as a 1099, and a copy of your government-issued photo ID. As it varies from one company to the next, you may find other items are requested.
How Do You Repay a Direct Express Loan?
After taking out payday loans with a Direct Express Card, carefully pay attention to your card balance on the repayment date. Funds from the loan go straight to your Direct Express card, but the loan balance and fees are also deducted from that same card.
What's the Best Way to Find Payday Loans Using SSI Direct Express Card Near Me?
State laws vary, so it may be hard to find Direct Express loans near you. The easiest way to apply is by looking at Direct Express loans online. You complete the form for the Direct Express loan online in a matter of minutes and have your answer just as quickly. If it's approved, the money is sent electronically to your Direct Express debit card where you can withdraw cash or use the card to pay bills.
What's the Difference Between a Direct Express Payday Loan and Comerica Payday Loans?
As Comerica handles Direct Express debit cards, there really is no difference. If you're looking Direct Express card loans without a bank account, you can just as easily look for Comerica payday loans or Comerica bank cash advance loans.
Can You Get a Payday Loan on Social Security?
Many companies that offer payday loans that accept Direct Express cards also offer Social Security payday loan options. These work the same way as SSI payday loans. If you use the Direct Express card for your Social Security income, the same process with the payday loan for SSI is used for the Social Security payday loan.
Can I Get a Payday Loan if I Only Have Disability Income?
Payday loans for people on disability are another possibility. The income you earn for your disability is used to apply for SSI disability payday loans. The same steps are taken with proof of income, photo ID, contact information, and money is sent to your Direct Express card or bank account, if you have one. When it's time to repay your disability payday loans, the money is automatically deducted on the loan repayment date.
Can I Get an Emergency Cash Advance on My Direct Express Card?
The government does allow Direct Express emergency cash disbursements in certain situations. What happens is you call them and explain the situation. If it's approved, your next SSI payment is sent a few weeks early. The reasons for emergency cash disbursements are:
Applicants who have just become blind or disabled and are awaiting the Disability Determination Services process's final decision.
Emergency Advance Payments and Immediate Payments are options for recipients of SSI who desperately need cash for medical care, shelter, clothing, or food. There is a limit of $999 for Immediate Payments, and it's withdrawn over your next SSI payment.
Former recipients (within the past 5 years) who lost or had to leave a job due to the disability and need benefits again.
In each case, the government has the final say on whether you'll be approved or not. If they deny your request, you cannot appeal the decision. At that point, your best bet is to find a financial company that offers a Direct Express emergency cash advance.
Can I Get a Payday Loan With Only a Debit Card?
A large percent of payday loan companies accept debit card payday loans. The process is the same as it is if you take out the cash advance loan using a postdated check. You borrow the money and the payday loan company notes your debit card, expiration date, and CCV number.
On the day the payday loan with debit card is due to be repaid, the company deducts the loan amount and interest from your debit card. If you fail to have the money in the account to cover the charge, you could face fines and penalties. Make sure there's enough money in there on the day before the payment is due to be deducted.
Can You Get Payday Loans If You Only Use Prepaid Debit Cards?
Payday loans that accept prepaid accounts like debit cards are possible, but not in every area. If your state allows prepaid debit cards to be considered a valid bank account, you'll have an easier time getting approved.
It can also come down to the bank itself and what their rules are. Call the prepaid card company and see if they would allow a charge to repay payday loans on prepaid cards without any question. Sometimes, calling and letting them know it's not a fraudulent charge is all it takes.
It's also important that you look into your state laws. For example, payday loans in Kansas City are legal. Missouri payday loans can have repayment terms ranging from 14 to 31 days with fees allowed to be up to 75 percent of the initial loan amount. Borrow up to $500 at a time and rollover the loan up to 6 times.
Can You Get Payday Loans With a Savings Account?
What about payday loans with savings account information? It used to be that you needed a checking account for a payday loan, but some companies now allow payday loans if you only have a savings account. It works the same way as most payday loans.
You do need to make sure that your bank allows automatic deductions from savings rather than checking. The easiest way to see if a payday loan lender offers savings account payday loans is by asking. If the answer is no, there are other options available that work with debit cards, prepaid debit cards, or Direct Express debit cards.
For more information about payday loans go to Direct Express Loans.
