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In 2020 there were about 865,000 workers across the US who are paid below the federal wage. Many of these rely on Social Security to pay their bills and meet all of their expenses. This group are particularly exposed to needed short-term cash, especially when you consider that the majority of Americans couldn’t meet a $500 emergency bill. If you need an emergency cash injection then a payday loan might be the way to do this.

Can I Get A Payday Loan On Social Security?

Yes – almost anyone can qualify for a payday loan, even if you are on Social Security. One of the requirements for a payday loan is to have a regular source of income, social security checks do count as a steady income source. This will make you eligible for a payday loan if you meet the other requirements (US citizen, active bank account, over 18 years old).

How Can I Get A Loan On SSI?

If you are currently on social security and you need a loan then you will have to submit specific documentation. You will need to send a copy of the SSA (Social Security Award) letter. This letter is used to verify the source of your income so that the lender is satisfied that it is consistent. To get this letter you can apply directly to the SSA and get a copy of it. After you get the letter you can use it in your application for a loan.


Social security is paid monthly which means it counts as a stable source of income in the eyes of a payday lender.

What Should I Consider When Applying For A Social Security Payday Loan?

Capital Bean works with a wide range of lenders who are happy to work with those with bad credit or who are on social security. Before you decide which lender to work with you should research a range of lenders to see where you can get the best rates. You should also read the terms and conditions carefully to make sure that you can afford to make repayments. When signing any agreement the lender has to let you know the full costs and regulations surrounding the loan so that there are no surprises. You should also consider:

  • The Amount Of The Loan – you should only borrow what you can afford to repay. And remember, payday loans should be used for emergencies and not for luxuries or ‘wants’. Borrow what you need and what you can pay pack.
  • The length of the loan – most payday loans are paid back after your next paycheck, this is why they are called payday loans. In some cases, you might want to borrow the money for a longer period of time and pay it back over a few months. These are called installment loans. The installment will be the same each month and at the end of the term, you will have completely paid off the loan.
  • The APR – the annual percentage rate of a loan is calculated over a full year. This is why they are high. For example, the APR might be 400%, but since you are only borrowing the money for two weeks the actual APR you will pay will be 16%

What Can I Use A Payday Loan For On Social Security?

Payday loans should be used for emergencies – if you have an unexpected medical bill or a hospital stay that you didn’t foresee. They can be used to plug a shortfall in cash to help get you through to the next payday. They should not be used for vacations, a new car, or new clothes. These are not emergencies!

Richard Allan

Richard Allan

Richard Allan is the founder of Capital Bean and a passionate writer about personal finance, budgeting and how to save money at home and work.

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