6 Alternatives to Payday Loans
Payday loans are a fast an easy way of accessing funds for various urgent needs. The process of applying for the payday loans online is easy and will not require check with the credit score among other needs and checks. Therefore, the payday loans has a high approval rate. However, the major limitation of the online payday loans is that they attract a very high interest rates and it is advisable to seek alternatives and go for a payday loan as a last resort. Six of the areas that you can get alternative cash are provided below.
1. Credit Union Loans
Credit unions are usually more relaxed when it comes to lending funds as compared to regular funds., They provide much faster loans especially for small loans with less paper work and other protocol. This is an ideal alternative to the payday loans. The interest rate charged on the credit union loans is reasonable and much lower as compared to the interests charged on the payday loans. However, the process of approval and crediting the loan may be much slower as compared by the online payday loans.
2. Employer advances
You may also consider seeking an advance from your employer to be deducted in your nest paycheck. The best thing about the employer advance is that you get the funds interest free. However, not all employer provide such a facility to their employees. Besides this, many people will not want to expose their financial needs to their employer and will prefer to borrow elsewhere such as taking a payday loans online.
3. Bank Overdraft
You can also talk to a bank representative especially from the bank that you get your paycheck through and have them provide you with an bank overdraft. This is available to both regular pay employees and business people. The bank will use the records they have of yours to verify information and determine whether you are credit worthy for such funds. Most banks will consider providing a loan to their clients especially when there are consistent funds that come in from your employer. Such bank overdrafts will normally have a much lower interest rate as compared to payday loans options. However, the loan may require a lot of paper work, checks on your credit score and a lot of filling of forms. The funds also take longer before being released as compared to payday loans.
4. Emergency community assistance plans
There are various emergency community assistance plans available in most communities. You can seek financial help from such plans. The help can come in terms of a loan or a grant. All you need is to properly articulate your need in writing and have it forwarded to the necessary authorities.
5. Loans From Friends and Family
You can also seek for a loan from friends or from family. Advantage of such loans is that they attract no interest normally and you can also arrange for a longer repayment time. The shortfall of borrowing funds from family and friends is that you may not always find money waiting for you as is the case with financial companies. Payday loans companies will always have and provide funds to qualifying individuals.
6. Seeking Credit Terms from Suppliers
You can also seek for credit facility from the person needing the funds. You can as well request them to await payment on payday. Many suppliers will agree to such an arrangement. However, many may not and may wait for you to provide them with the necessary payment thus necessitating online payday loans.
Payday Loan Ranger is a leading online payday loans provider and we provide both payday loans online information and also provide quotes from different payday loans providers. Find out more of our service by following links to our website.
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