Payday Loan Alternative

3 Alternatives To Payday Loans

Payday loans are one of the most appealing options for anybody who requires quick money to help them cover some mid-month emergency expenditure. Payday loan applications are usually approved easily and you will get the money into your account within a day so you can take care of your emergency expense. What’s more, these loans are approved irrespective of your credit history, which is otherwise a huge factor with most other lenders.

The only downside to taking a payday loan is the high interest rate. If you are shopping around for alternatives to payday loans here are a few that you can consider. Keep in mind though that none of these will be approved as quickly as payday loans so you should only consider these if you have some time before you need to use the money. If you need the money immediately, pay day loans remain the best option.

Ask your employer for a pay advance:

If you need money before your pay is due, it does not hurt to ask your employer to pay you your salary in advance. Most employers will not have a problem doing this. They understand that emergencies can happen and by helping you out, they know they will have a more productive employee on their hands. It beats having an employee come in to work with money problems on their mind. As for returning the money, they know it can simply be deducted from your next payment. Asking your employer for a pay advance should be your first resort.

Bank overdrafts:

If you have a bank account, you can speak to your bank manager about getting an overdraft. Bank overdrafts are usually given for a fixed amount over a fixed period of time. An interest will be charged every day on the amount that you are overdrawn and you may also be charged an administration fee for setting up the overdraft facility. This type of loan works fine as long as you use an authorised overdraft and stay within the limit.

Credit cards:

If you can use your credit card to make the payment it will buy you some time till you get your next salary, which you can then use to pay up your credit card dues. There are a couple of things you need to keep in mind though. If you can pay up your credit card bill in full before the due date, the loan you have taken will be interest-free. However if you do not clear the dues before the payment deadline, you will be charged heavy interest on the unpaid amount.  
There is no one loan option that works for everyone. The best loan option for you will depend upon your urgency as well as your personal financial situation.