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Exploring Payday Loan Alternatives

December 17, 2018 | By Louis Tully

When it comes to financial emergencies, too many folks just don’t have a backup plan to protect themselves. That’s unfortunate, since financial emergencies are pretty common, and they seem to come up when we least expect them to. When an emergency does strike, payday lenders among other short-term fixes certainly come to mind. But what’s the best way to handle a temporary financial crisis? Here are a few payday loan alternatives you could explore:

First, What’s a Payday Loan?

Those who can’t borrow money elsewhere sometimes turn to payday loans to fill an unforeseen financial gap. In short, a payday loan is a short-term loan that usually ranges from $100 to $500. There’s no collateral needed to secure a payday loan and most people can get approved with minimal requirements. A payday lender could give you the same-day cash you need in exchange for a post-dated check with the loan amount included on it, but should only be taken out if you know your next paycheck will cover the amount borrowed (plus the finance fee).

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Zero-Percent Credit Cards

There are several other options out there for dealing with unexpected breaks in cash flow, zero-percent credit cards being one of them. If your credit allows, you could be approved for a credit card with an attached 0% APR period. Some of the top 0% intro APR credit cards include:

  • Capital One Quicksilver Cash Rewards Credit Card (Intro APR Purchase Period – 15 months)
  • Chase Freedom Unlimited (Intro APR Purchase Period – 15 months)
  • Discover It Cash Back 0% (Intro APR Purchase Period – 14 months)

Personal Loans

If your credit score isn’t quite up to par in the eyes of the credit card companies, a personal loan from either a bank or credit union might be an easier way to go. If approved, borrowers can take home anywhere from $1,000 to $40,000 (depending on the lender) with terms ranging from 24 to 60 months.


Other Options to Consider

If your credit just doesn’t allow you to get a credit card or a personal loan, and you have nobody else to borrow the money from, then a payday loan is something to consider. Talk to your local payday lender today to find out more about payday loans and how they might fit into your financial emergency situation.

Avoid a Financial Emergency in the Future

Even now during the holiday season, you and your family can spend winter break doing things that won’t break the bank so that you stash away that extra money for future emergencies. Since there’s no telling when and where a financial emergency might strike, it’s best to start taking steps to prepare now. Make a budget, stick to it, and pay yourself first when it comes to saving up – you’ll be amazed at how fast your savings grow. And when an emergency does come up, consider all your options to make a final decision!