I get SSI benefits on direct deposit on my direct express card. Can I get a loan?
This week Danny sent us a question about borrowing a short-term loan on his Social Security benefits. Are you in the same boat? Let’s see if you qualify.
Can I Get a Loan with SSI?
SSI stands for Supplemental Security Income. It’s a federal program that makes monthly payments to people who are disabled, blind, or aged with little outside income. The funds can be used for any reason, but the government focuses on housing, food, and basic necessities.
You may still qualify for a payday loan even on SSI. Keep in mind, however, that most lenders require at least $800 per month in gross income before they will look at any application. The average disability deposit for 2017 was $750 for individuals and $1,125 for couples.
Lenders require a minimum monthly income to protect you from financial problems. The rule acts as a safety net to gauge whether you earn enough to pay back the loan. The more you make, the more you can afford to borrow. Make sure you keep enough cash in your checking account to repay the unsecured loan AND your regular bills.
Can I Put the Money on My Direct Express Card?
Once you qualify for an SSI cash advance, the loan company sends the money to a working checking account. You must provide the routing and account numbers when you fill out the loan paperwork.
Will the Direct Express card work instead? Not at this time. The U.S. Treasury loads funds onto the card, and then you can use it like any other debit card. It does not work as a separate checking account.
If you need a savings or checking account, check out nearby credit unions and banks online. Many will let you open an account with as little as $50. Just watch out for the fine print–some will charge you a fee if you do not keep at least $____ in the account each month.