Personal Loans, Personal Success: 5 Payday Loan Alternatives That You’ll Love
Did you know you don’t need a payday loan to get money quickly?
Many people have the misconception that they need to apply for a payday loan when they want to get money as quickly as possible. However, you can find a plethora of options that will provide you with funds quickly.
The main reason why you should avoid payday loans as much as you can is because of their interest rates and short repayment periods. Lenders that offer them expect you to miss your payments, forcing you to go into even more debt than you were already in.
Here are 5 payday loan alternatives so that you can healthily borrow money.
1. Bad Credit Loan
When it comes to getting quick loans that aren’t payday loans, you have plenty of options. One of the best ones you can get is a bad credit loan. Similar to payday loans, you can expect to get funded within a day or two, depending on the loan provider.
Bad credit loans are great alternatives to payday loans because you won’t have to pay as much interest. You’ll also have plenty of time to pay off a bad credit loan, unlike a payday loan (which is anywhere between two to four weeks).
Bad credit loans function similarly to regular payday loans, with the only difference being that you can get one with poor credit. You may even improve your credit score when you take out a bad credit loan, allowing you to get better loans in the future.
2. Standard Personal Loan
When people want a quick loan, they often look past the standard personal loans that banks offer. However, many banks offer personal loans that can be funded quickly, you’ll just need to look for them. If you don’t have an account with a bank, you can get a personal loan from a credit institution.
Personal loans are some of the best to get because they come with longer repayment periods and lower interest rates. However, you typically need to have good credit to take one out because of the risk that the lender won’t get their money back.
When applying for a personal loan, you can request whatever amount you’d like. However, your income and credit score will determine how much you can borrow. Some institutions offer up to $50,000, but you’ll need an excellent credit history. Expect to get $10,000 at most because lenders don’t want high risks.
If you owe money on other loans when applying for a personal loan, you may be declined. Because of this, it’s best to pay off as much debt as you can before applying.
3. Business Loan
For those that are looking to get a loan to fund their business, a business loan is the best option. These are very different from payday loans because they’re designed solely for business use. You can expect to have longer repayment periods than a standard personal loan, and lower interest rates.
When a lender is determining whether you’re eligible for a business loan, they’ll look into your credit history and your business’s revenue. If your business doesn’t earn much money each money, you’ll have a hard time getting one.
However, it’s worth trying to get one because you can borrow much more than you could with a payday loan. With a business loan, you can borrow several hundred thousand dollars to fund your business expenses.
4. Credit Cards
Although there are plenty of loans for bad credit, you should consider using credit cards. Unlike the typical loan, credit cards can be used continuously. Whenever you owe money to your credit card provider, you can pay them back and use the card again.
What makes a credit card a good borrowing option is that you can build credit while borrowing money for day-to-day purchases. Even if you need money for something like a business, you can use a business credit card.
Credit cards are much easier to obtain than a loan because there are many options. Whether you have good or poor credit, there’s a credit card you qualify for. Using it daily will help you build your credit much quicker than a loan can. You also don’t have to worry about a plethora of loan applications showing up on your credit report.
5. Organize a Payment Plan
If you want to get a quick loan because you’re struggling to pay the bills, you should consider organizing a payment plan that helps you. For example, if you owe a certain amount of rent money, talk to your landlord and figure out how you can pay them.
In many cases, you can come up with a payment plan that allows you to make minimum payments without getting a bad reputation. However, not everyone will be willing to do this.
This can often be done with loan providers because they’d like to get their money back in any way they can. When they see that you’re struggling, they may even reach out to you with a proposal. Take them up on it so you don’t have to get things like poor credit loans.
Use These Payday Loan Alternatives Today
After reading this article, you now know of several payday loan alternatives that you can use. We encourage you to start working towards paying off any debt you have before getting a loan. This will increase the likelihood that you’re approved, and you’ll avoid getting a poor credit score.
Contact us to learn about our loan options and how we can help you.