If you do not currently have your card in your possession, the Direct Express Emergency Cash function enables you to withdraw up to $1,000 from the available funds on your Direct Express card account.
This tool allows cardholders to access money from their accounts even when they don’t have their card. Even though cardholders are not currently in their home states, it is beneficial if they have lost their card.
- 1 How to Use a Direct Express Card
- 2 The Fundamentals of Direct Express Emergency Cash
- 3 Will the Direct Express card accept my stimulus check?
- 4 Does Direct Express offer cash advances?
- 5 What Charges Apply to Emergency Cash Advances?
- 6 Is Direct Express Emergency Cash a Loan?
- 7 Who Needs Direct Express’s Emergency Cash?
How to Use a Direct Express Card
You can use any other debit card with a Direct Express debit card. Any business that takes MasterCard will let you use your card to make purchases there as well as online, over the phone, and at their physical locations.
They will debit your Direct Express card account each month with the amount of your federal benefits, such as Social Security, SSI, or SSDI. Furthermore, wherever the MasterCard acceptance logo is visible, Direct Express cardholders can withdraw cash from ATMs.
To use their ATMs, specific ATM owners may charge a fee. In addition to any other costs, this one is charged.
The Fundamentals of Direct Express Emergency Cash
Before discussing a Direct Express emergency cash advance, you must comprehend a Direct Express card.
Most persons who qualify for and receive government assistance have a checking account to receive their payments. However, Direct Express cards offer an alternate payment method because not everyone can access a bank account. Any federal benefit recipient who receives social security or equivalent cash can apply online or over the phone.
You can store and use a Direct Express card just like a debit card after you receive one.
With these monies, you can also pay rent and utility bills online or over the phone. You can utilize the entire balance on the card up until there is nothing left on it. Because these cards are designed for those participating in government programs and only provide access to the money you have been paid, you cannot overdraw.
Applying for these cards typically takes ten days to arrive in the mail. This period prevents you from activating the card or using your available funds, which is problematic for many people in urgent need.
Will the Direct Express card accept my stimulus check?
Yes. The majority of eligible beneficiaries of Social Security, SSI, or SSDI will receive their Economic Impact Payments or stimulus payments via their Direct Express card.
The Internal Revenue Service intends to load those stimulus funds onto current Direct Express cards automatically.
Does Direct Express offer cash advances?
Since Direct Express is not a credit card, you cannot use your card to obtain an advance. Only the federal benefits deducted from your card may be spent.
However, specific lenders provide payday loans secured by public assistance, such as Social Security and Disability benefits. It’s crucial to remember that payday loans include pretty hefty fees.
The Consumer Financial Protection Bureau (CFPB) estimates that the fees for payday loans could be between $10 and $30 for every $100 borrowed. Additionally, the maximum loan amount and fees differ by state and are generally determined by state law. $15 per $100 is a typical cost. This translates to a two-week loan with an annual rate of close to 400 percent.
Therefore, assuming a price of $15 per $100, if you needed to borrow $300 before your subsequent government benefits check, it would cost you $345 to repay.
What Charges Apply to Emergency Cash Advances?
As you might anticipate, using a money transfer involves costs. The cost will be roughly $12 if you withdraw the whole 00. The price will be closer to $8.50 if you decide to withdraw only about $500.
The percentage fee will be lower the more money you have access to. Therefore, it could be advisable to withdraw more money at once to save on paying more fees if you need it later.
Is Direct Express Emergency Cash a Loan?
Emergency Cash is not a loan, and no fees or interest charges are associated with it. Instead, it is simply an advance on your next Direct Express® benefit payment. When you request Emergency Cash, the lender will deduct this amount from your next benefit payment.
For example, if you have $500 in benefits and request $300 in Emergency Cash, you will receive $200 in benefits when your next payment comes through. While Emergency Cash can be a helpful service in times of need, it’s important to remember that you should only use it for emergencies.
Who Needs Direct Express’s Emergency Cash?
For the following demographics, the Direct Express Emergency Cash program is particularly beneficial:
First, if you lose your Direct Express card, or if Direct Express has canceled your card and you are waiting for a replacement card to come but you urgently need cash.
Second, if your Direct Express card has run out of funds and you need access to your money immediately while you wait for a replacement card to arrive in the mail.
Third, if you’ve ordered a new Direct Express card for whatever reason and need to withdraw money from your account right now