Everything you need to know about a Cash Advance
Posted: Feb 16, 2019
Everything you need to know about Payday Loan Alternatives with Low Income
Everything you need to know about Payday Loan Alternatives with Low Income From time to time, we all find ourselves desperate for some cash. You could be in dire need of cash to pay your lights bills, buy groceries or even attend to an auto repair emergency. The only option you have to save you from untold disasters is your monthly paycheck which might be a few weeks away.
It's no secret that such financial emergencies cannot hold off until you receive your stipend and that's where fast payday loans step in to save the day. What if we told you that there are several payday loan alternatives that you can take out and get the much-needed financial reprieve minus all the risks associated with your conventional payday loans? Read on to learn more about Payday Loans and alternatives.
About Payday Loans
Payday loans basically cash advances against your forthcoming paychecks. This loan has the added convenience that it only takes a few minutes at most to fill out the application form and get the cash debited to your preferred accounts.
As mentioned, securing on average $500 fast payday loans are quite easy and quick. All that's required from you are a valid identity card, your current phone address, your checking account details, proof of income, and of course, you must be above 18 years.
Remember there is a difference between a payday loan and cash advance loan. To understand the difference check on Cashry blog.
Payday Loan Alternatives
The alternative financial solutions you consider in emergency situations are primarily determined by two underlying factors.
- Do you have an existing long-term debt?
- What is the state of your credit score?
Borrowers with an excellent credit score rating coupled with the fact that they aren't servicing any long-term debts have the options of taking out loans using their credit cards.
Borrowers who have an existing long-debt obligation combined with an average credit score rating, however, are highly recommended to go for the personal loans reprieve.
Finally, for those cash distraught borrowers that are currently serving a long-term debt and with an average to poor credit score, the best financing route to take is the payday alternative loans abbreviated as PALs.
Payday Alternative Loans
This form of emergency funding is provided via the chartered National Credit Union Association (NCUA) and it's backed by the federal government. These payday loan alternatives bear the following hallmark features:-
- Repayment periods of one to six months
- Average amounts borrowed range from $200 to $1,000
- Low processing fees of around $20
- Low repayment interest rates of up to 28%
To get a PAL, you must have been a member of the federal credit union for durations of not less than a month.
Borrowers receive these loans regardless of the state of their credit scores. The most important consideration here is that the borrower has a consistent income and is capable of meeting their repayment obligations.
PALs aren't like the payday loans that can be rolled over if you fail to meet the payment deadline; these loans must be repaid at the stipulated time frame.
Borrowers are not permitted to take out more than three such loans within a six-month duration. Other payday loan alternatives that are worth considering include:-
- Borrowing from family, workmates and from friends
- Pawning off and selling some unused and unwanted household items
- Borrowing against your 401(k) savings
- Starting a residual income generating job
- Taking out a second job
- Being extra-frugal
- Requesting an advance from your bosses
U.S banks also offer payday alternative loans, according to clark. com.
Don't allow yourself to walk down the path followed by one out of every five payday loan borrowers. The latter borrowers have found themselves having to repay interests and fees that actually exceeded the original principal borrowed, according to a 2104 study by the Consumer Financial Protection Bureau.
It's in your best interests to seek out payday loan alternatives that are friendly and flexible on your pockets. Look for certified and trusted financial lenders for your cash loans bad credit needs for a seamless borrowing experience.
Are you desperate to secure financial assistance with a dilapidated credit score today? Cashry.com may help you find a lender. Contact us for more information about loans, cash advances and cash loans bad credit.
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