A payday loan offers so many benefits, such as quick access to cash and no need for credit checks. But what happens when you can’t obtain one? If you don’t fulfill the criteria for getting a payday loan, you need to seek an alternative. In this post, we share the best payday loan alternatives. Once you go through them, you will be able to pick a convenient option that matches your needs.
Bad credit loans
Many lenders offer bad credit loans for the ones that don’t have a perfect score or have high debt. This usually applies to credit scores below 690 FICO. Pre-qualify with various lenders to get the best offer, as it doesn’t harm your score. Bad credit loans don’t require a lengthy screening process, and you can have cash fast on your account.
Credit unions offer a wide range of options for their members. If you are already a member or are eligible to become one, then you can get a loan. However, keep in mind that the whole process will take a few days. Keep in mind that the credit union will perform a screening and credit check. Despite having insights about your financial history, they will assess your job, employer, and salary. This whole process of approval can take about a week to be completed, so it isn’t a fast option. Lastly, keep in mind that any missed payment will affect your credit score in a negative way.
Borrow from friends
When you are in a challenging situation, your family and friends can help you. Borrowing from a trusted person means that you won’t be required to pay interest. If you decide to borrow from someone, have a detailed talk about paying. Define whether you need to pay it all at once or monthly. Also, define the due date for the payment. The only collateral that you put here is your relation with your friend or family member.
When you need extra cash frequently, consider having a side hustle. While loans will have you covered in tricky situations, they aren’t a long-term solution. Depending on your preferences and qualifications, you can choose to work for a ride-sharing company or open your own online store. However, be careful with suspicious online ways to earn money. Anything that promises fast and easy cash is likely a scam.
Paycheck advance apps
If you have a stable job and a regular salary, you can qualify for paycheck advance apps. There are a few apps that allow you to connect your bank account, receive money, and have the payment automatically made once you receive your paycheck. This type of apps can offer up to $500, which means a lot during a difficult situation. The best thing is that you don’t get charged with interest. Each user can pay a small fee or a donation of their choice to support the app.
Create a lending circle with friends
Creating a lending circle with trusted friends seems like a good option. This can help you raise funds for anyone in need. To be able to join a lending circle, you need to have a good and stable income. There are many websites that you can use to organize your lending circle. Besides, some of them will even improve your credit score.
Get no credit check pawnshop loan
If you have a valuable item but don’t want to sell it to get cash, consider getting a pawnshop loan. Take your item to the pawnshop and let them assess the value. Based on the current value of the article, you will receive a corresponding loan. The terms and conditions for the payback and due date are up to you and the person in charge. You have the flexibility to negotiate the fees, interest, and due date. You won’t undergo a credit check since the pawnshop loans are secured with the item you enclose. They can be pretty fast with transferring the money, but you need to discuss this thing upfront.