If you have a poor credit then the option of securing money fast through a loan are never always of high quality or many. You should be using payday loans carefully and should consider it as the last way out. Otherwise try to consider these alternatives mentioned below.
Negotiate With Creditor:
If monthly bills are troubling you a lot or you require an extension then get in touch with your creditor. Ask them for some additional time. You will find that most of them will agree to you and offer you an extension. It is also made simple by some creditors who place an option of short extension on the website. Remember that if late payments are not reported to the creditor, it will bring down the credit score once it is reported.
Make Use Of Home Equity:
Do you own a home? Do you have any equity? Then you can easily get some extra money if required. You can avail a line of credit, second mortgage and also refinance the mortgage. Before doing these, make sure you are in real need of the money.
Take Money From Savings Account:
A savings account or may be an emergency fund can be savior during urgent times. If do not have either of them, open it as fast as you can for your own emergency needs. Start with $15 each week and it will add up and be a great option during unexpected situations.
Borrow From Close Ones:
If you are in need of urgent money, you can always ask your close one. Some family members and friends will be eager to help you. Moreover loans of smaller or shorter period will come with high interest rate and thus this option of asking a friend or family member will be more convenient. Borrow it from them and pay back in full once you can.
Talk With Private Lender:
Suppose your close one could not help you, then you can try to speak with your private lender. Several private lenders are there in the market who offers both secured and unsecured loans. You can opt for a decent loan option from them. So get in touch with them and find out how they can aid you.
Ask Employer For An Advance:
Ask your employer for a salary advance if you go face any financial emergency. A salary advance is not a loan but your money only which you will be getting a bit early than normal payday.
Take Help From Bank:
If you have a poor credit, banks are not considered as one of the best options always for any unsecured loan. But if availing a payday loan is the only option left to you, then you can give it a try. Banks might also be agreeing to lend you the money once your loan gets secured against any of your asset. If still the credit is not sufficient, get a co-signer in order to turn things into something much easier.
Life Insurance Loan:
If you have any cash value in your insurance policy, then the number of total life insurance policy will provide you an option for loans. You can take the time for repayment according to your own wish. If you do not pay back the loan, then the amount will be deducted by the insurance company from your death benefit.
Look For Credit Union Loan:
As a member of any credit union, you can talk to the member service department. Most of the credit unions are seen to provide their members with small, short period loans that they can use during emergency and become financially stable again. The rate of interest offered is low and thus such loans are more affordable than those of the banks. Other than this, they come with a very flexible process of approval frequently.
You can look out for debt settlement as an alternative to payday loans. But it will affect the credit score. It can only aid you in resolving your debt and thus start afresh.
Use Credit Card:
Use a credit card to pay off your household expenses as it will be much cheaper than a payday loan. You can also use the credit card to clear off your phone bills.
Get Hold Of Credit Counseling:
Suppose your financial condition is not in your control, then going through credit counseling will be a great option. It will aid you in analyzing the debt and define a much realistic and personalized budget. It will also help you in negotiating lower rate of interest along with lower payments every month. Ensure that you work with a reliable credit counseling service provider and not any operation that keeps on preying on the financially affected people.
A personal loan with lower rate of interest will aid you in improving your credit score. But if you opt for a bad credit payday loan there will be no hope of any improvement. So now that you have a complete idea of the alternatives, choose wisely.