Posted by Richard Flores on 2020-02-04
The alternatives to a payday loan are quite extensive, the choices that you have may not always be the perfect choice, but they are available. However, at times when you need money fast it is a case of choosing the best option for your particular needs that will get you the money you need the fastest. What works best for you might not be the best for someone else, and this is ok, it is merely about making sure you get the money you need. However, for those who are looking for fast money, what other options are there really?
Your first choice is of course a good traditional bank loan. This is the type of loan that most people think of when they first start thinking about a loan. However, if you have had credit problems, money problems, a new job, a recent move, or any other one of a huge list of potential problems you are looking at being denied quickly. However, while this can provide the cheapest interest rates for borrowers it can also take a large chunk of time to deal with applying for the loan.
Another alternative for those who own their home is a home equity loan. This is generally not appropriate if you are just needing a small amount of money. Plus, many times home equity loans require that you spend a certain amount in fees and other charges associated with getting the loan. This can make it widely out of reach for those who either do not own their home, need only a small amount of money, or have no money to spend on the fees associated with the home equity loan.
Title loans are also possible for many consumers. This will involve a person giving the title to their vehicle in exchange for a small loan. The loan is typically based upon a percentage of the value for the vehicle as well. This means that someone who has a very basic car with a lot of miles on the vehicle will not be able to obtain as much money as those who have a very new vehicle with very few miles. This can create a problem for consumers who have only a basic car but still need several hundreds of dollars. Additionally, many consumers are not comfortable with the idea of putting their vehicle at risk in the event that they are unable to pay off the loan.
The final popular alternative is a pawnshop loan. This type of loan involves taking an item that you own that is worth value and giving it to a business called a pawnshop. They then hold onto your item as collateral and give you a loan. Typically, it is very difficult to get enough money in a pawnshop to really handle any expenses that you may have which in addition to the very high interest rates make them a poor choice for most people. Another common problem is the fact that most people are not comfortable putting up their personal items for collateral.
Online payday loans will provide the money that people need without require them to put up the title to their car, without requiring them to place personal items up for collateral and without forcing them to obtain a new mortgage on their home that they may not be able to afford. It is by far one of the simplest methods that consumers have to obtain the cash they need very quickly and at affordable rates.