Loans That Are Not Payday Loans

Loans That Are Not Payday LoansIf you’re looking for loans that are not payday loans, you’re on the right track. Payday loans are never the answer if you have other loan options available to you, the only thing left to do is find out what other loans you’re eligible for.

Most people turn to payday loans not because they think it’s a good deal, but because they’re out of other options due to a poor credit score, or a poor repayment history with family and friends. The first type of loan that saves many people from having to get a payday loan is a title loan. This involves using your car as collateral to get a loan with more favorable terms and rates than a payday loan. They’ll usually set it up as an installment loan so you can make payments on it each month rather than having it all due back at once.

If you don’t have a car that qualifies for a title loan, and many people don’t since the title needs to be free and clear in order to get the loan, your next best option is a loan from a pawn shop. This is also not going to have the best rates and fees, but at the same time you’ll be able to pay it off gradually, which makes it a superior choice to getting a payday loan. The other thing is if you have an item of value that you don’t really want anymore, you can simply pawn it and not have to worry about paying back a loan.

Loans That Are Not Payday Loans – What Are My Options?

The next loan that might help you out of a jam is a personal loan from the bank. This is the type of loan that would help many avoid getting a payday loan, but is also the main reason people turn to payday loans in the first place, because they don’t qualify for them. You’ll need to have stellar credit to get these types of loans, but they’ll have the most favorable conditions, allowing you to borrow the money for the longest period of time, and with the lowest amount of interest and fees paid.

Family and Friends
How much is your pride worth to you? If you’re thinking about getting a payday loan or other loan because you don’t want to ask your family or friends for the money, you should reconsider. It’s not a sign of weakness to fall on hard times, and your friend or family member might actually be able to help you look at things from a new perspective and realize you don’t even need the money, or maybe not as much as you think you need.

If you feel bad about it, structure the deal in a way that makes it so they can’t lose. Pay interest on the loan, or do favors for them like babysit or do yard work or something else to pay off the loan. If you can be creative during a time of financial crisis you’ll be gaining a skill that can help you out later in life, rather than panic and rush to a lender for a loan that is going to cost you a lot of money over the long term.

Best Next Steps
The best thing you can do if you don’t qualify for any of these other loans is to start working on your credit. You don’t have to make any big changes, or expect your credit score to go up overnight, but if you simply start by getting a secured credit card you can start having something good show up on your credit report rather than having it all be bad. Having bad credit permeates into plenty of areas in your life, and is worth the time it takes to clear it up rather than just living with it.

Our Recommendation
Anything you can do to avoid the need for a payday loan, the better. It doesn’t matter how you scrape the money together, if you avoid that trap you’ll save yourself hundreds, potentially thousands of dollars and you’ll side step potentially financial ruin. Swallow your pride, ask your friends and family for help, just be sure to be there for them when they need you and you’re able.

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