A payday loan is a loan that is given when you need money fast. It is usually awarded in amounts of $500 or less and must be paid back by your next payday. Lenders of this type of loan must be given access to your checking account or you have the option of writing a check for the full balance you owe them. If you choose to give them a check, the lender can choose to deposit it once the loan’s payback date approaches.
In general, payday loans are not always the best option for everyone. They can come with extremely high fees and interest rates that many people cannot afford. Fortunately, there are more than one easy payday loan alternative options you can explore. One or more of these may be better suited for your needs when you need extra cash before your next paycheck.
Best Payday Loan Alternatives
• Avoid Taking Out a Loan: Perhaps the best option of all is to find a way to not take out a loan. When you acquire a loan, it always means you will have a debt to pay back. In addition, loans tend to have interest tied to them. Depending on the exact rate of that interest, it can really add up and prove burdensome.
• Apply for a Credit Card: If you are absolutely certain that you can pay back the debt quickly, applying for a credit card is a good idea. There are two good cards in particular that you might want to consider: the Chase Freedom Unlimited and Credit One Bank Unsecured Platinum Visa card.
• Apply for a Personal Loan: If you really need a loan, consider applying for a personal loan instead of a payday loan. Personal loans offer you a longer repayment period, installment plan and usually smaller interest rates. There are three good lenders that you might want to consider: Prosper, Lending Club and OneMain.
Be Smart if You Do Have to Take Out a Payday Loan
Personal loans generally should only be taken out when you are absolutely desperate for extra cash and have exhausted the other options. It isn’t only high interest rates and fees you have to be wary of, but you should also only borrow the amount you need if you do take out a personal loan. Always be smart and discriminating at the same time. Just because a lender may be willing to offer you a greater amount than you’re seeking, that doesn’t mean you should use poor judgment and jump in feet first. It’s also wise to explore your options when you are looking for a lender. Some are more reasonable than others.
These are some of the best, easy payday loan alternatives. You should always do your homework so that you can determine which option is best for you when you’re in need of fast money.