While you might not qualify for a loan on your own if you have poor or no credit history, with a cosigner, you could gain access to a Payday loan with better interest rates and build your own credit history while you’re at it.
Everyone has faced financial hardships in life at some point or other and has searched desperately for sources to ease our burden. If you’re experiencing financial hardship, try talking to your landlord, your utility company, your lender, or whoever you owe money to and see if they’ll work with you. It doesn’t always work, but sometimes it does, so it’s worth a try. Just give them a call and ask.
In certain cases, you might qualify for student loan forbearance or deferment, or consider bankruptcy as an alternative. If you’re considering other options to borrow money instead of payday loans, try to connect with a nonprofit organization that could help you manage debt, or with an Accredited Financial Counselor or another reputable professional to get the help and advice you need to pay your debt. Listed below are some other sources of getting an instant loan if a payday loan is not the option-
1 – Review your bills and talk to the people you owe
Before taking out emergency cash to cover a bill, first look at any payment due dates, then at the dates when late fees start to accrue. Consider other consequences of late payments, and try to prioritize what you owe.
For example, many traditional lenders have a 15-day grace period before they charge a late fee. If you just need to wait for your next paycheck, would paying one bill a few days late (but before you get charged a late fee) keep you from having to borrow money to make ends meet?
2 – Get a loan from Nonprofit organization
The nonprofit organization that provides 0% interest loans through lending circles to people in need across the country. Not only are these loans 0% interest, but they also report your payments to the three major credit reporting agencies.
There is a small caveat though. they require you to take a few short financial literacy courses prior to qualifying for a loan. But if taking those courses could save you 400% on interest over a payday loan, isn’t the extra time worth the wait?
3 – Get a Payday Loan Alternative from a Federal Credit Union
Payday Loan Alternatives (PALs) are small-dollar loans with loan terms ranging from 1-6 months. Many credit unions also offer financial counseling at no additional cost to their members.
The catch with this payday loan alternative is you often have to be a member of the credit union for at least one month before taking out this short-term loan. To gain access to a PAL, talk to your local credit union or bank.
4 – Get a cosigner on a traditional personal loan
A cosigner is someone you have a close relationship with – like a parent or spouse – who agrees to take full legal and financial responsibility to pay your debt if you can’t or don’t. Ideally, a cosigner should be someone who has great credit.
Just remember, if you don’t pay back the loan, you would not only put the financial burden on your cosigner, but you could also damage their credit for a payday loan. So if you go this route, make sure you will be able to pay off the loan as agreed.
Since emergencies can happen at any time, the best approach is to prepare as much in advance as you can. That way, if you do experience financial hardship, such as job loss, medical bills, unexpected car repairs, etc., you’ll be able to either borrow the money through a high-quality loan product or credit card or have the money saved to cover what you need.