What are Some Alternatives to Payday Loans?
If you’re thinking about taking out a payday loan, but you’re not sure if it’s the right option for you, you may be wondering what other options you have for getting emergency cash.
In this article, we’ll discuss 4 of the top alternatives to payday loans. Make sure you understand your options, and you’re sure to make the right decision for your unique situation.
Getting an Advance from Your Employer
If you can, the best alternative to a payday loan is to get a cash advance from your employer. In some cases, your employer may be able to provide you with your next paycheck early, so that you can have access to the emergency cash that you need. There may be some fees associated with this, but it’s still usually the cheapest way to get emergency cash.
However, not all employers let you do this. So, you may not have this option. If that’s the case, you have a few other alternatives.
Cash Advances on Your Credit Card
Most credit cards let you take out cash against your credit limit. Typically, this is limited by a daily withdrawal limit of $100-$500.
In addition, unlike a traditional credit card purchase, you’ll start to incur interest as soon as you withdraw the money. This interest rate will also typically be quite a bit higher – usually around a 30% APR (Annual Percentage Rate).
Still, a cash advance on your credit card is a viable option for emergency cash, and a good alternative to payday loans, if you have a high enough credit limit and an open credit card in good standing.
Title loans may be a good alternative to payday loans if you have a vehicle you can use as collateral. If you have a car, you can get a higher loan amount from a title lender, compared to a payday lender. You may also not need to prove your proof of income and employment, in some cases.
The risk of a title loan is that, if you fail to pay, the lender has the right to repossess your car and sell it, which could leave you in an even worse financial situation. Only take a title loan if you’re confident you can repay your loan.
Personal loans usually have a reasonable interest rate and are repaid over time in fixed installments. However, it can take days (or even weeks) to get a personal loan, in some cases. Most lenders and financial institutions will need a lot of information about your finances and your employment.
You also need a reasonably good credit score – if you have a subprime credit score, you’re unlikely to qualify for a personal loan. This is also true if you’ve declared bankruptcy recently, had a car repossessed or had other negative markers on your credit report.
Is A Payday Loan Right for You? Find Out!
There are many alternatives to payday loans, and in some cases, they may be a better choice, depending on your finances and your ability to repay. But if a payday loan is the best option for you, and you need instant payday loans online, Mypaydayloan.com is here to help. Apply today!