Yes, payday loans are available to those utilizing unemployment benefits.
Payday lenders typically will lend to those who have steady income and can prove it in some way.
By providing a record of your predictable unemployment income, and a form of ID, you have a good chance of being approved for a payday loan with unemployment. ✔️
Learn: Can I get a payday loan without direct deposit?
In fact, a payday loan lender is not allowed to disqualify your public assistance income.[1] Public assistance programs that would qualify include unemployment benefits and even Social Security payments.
Learn: Can you get a payday loan on social security?
Even though this type of loan is available to you (and doesn’t require a credit check), you might consider other loan options before you sign the dotted line ✍️
When you borrow with a payday loan, you’re not setting your “future self” up for success. Here’s why:
Say you’re running a bit short on funds this week and don’t get your unemployment benefits for another week. A payday loan might be tempting, but if you borrow $100, you will have to pay a $30 fee and repay the loan within the next two weeks.
Now, when your next benefit check hits, your "future self" will be down $30. This cycle can lead to accumulating more and more debt 😮
Whatever avenue you choose, it’s important to educate yourself on the risks and details of payday loans before you get one for yourself.
