Payday Loans - There Are Other Options

Most people who get a payday loan do so because they need
money fast. Bills have to be paid to continue utility
services and other necessities. Bank overdraft charges can
be devastating when they begin to accumulate, and payday
loans can seem like a possible solution for short-term
financial difficulties. Before resorting to these instant
cash loans with exorbitant finance charges, you should
consider any other reasonable alternative.

Don't simply assume that you would never be able to get a
loan from your bank or credit union. They know you and
your banking history, and may be willing to overlook some
credit problems and extend you a personal loan anyway. If
your employment history is stable, and you have been at
your current residence for a while, you will have a better
chance of getting a bad credit loan from your banking
institution, as well as other lenders.

If your credit is very poor, a lender may offer you a
secured loan. You will have to provide a tangible asset
that the bank will accept as collateral, that they would be
able to sell to cover their losses if you were to default
on the loan. Many things can be used as collateral for a
secured personal loan. Automobiles, jewelry, stocks and
bonds, rare coins, and numerous other assets can often be
used for security, depending on the standards of the lender.

Many employers extend loans at very competitive interest
rates to their employees. If you are fortunate enough to
have an employer who provides this service, you will
probably find them willing to extend you a loan, even with
sub prime credit. The payments are usually worry free for
the employee, as the employer will only loan an amount
corresponding to your salary level and any retirement plan
you have.

Typically, the loan payments are deducted from your pay by
electronic transfer at regular intervals. An employee loan
can usually be processed quickly, giving you your money
almost as quickly as with a payday loan, with a much more
attractive interest rate. You will likely be able to
borrow more money as well, because the maximum payday loan
amount is usually from $250, up to about $2,000.

Another way to get a loan with bad credit is to get a cash
advance on a credit card. If you obtained the card before
you began to have credit problems, you will likely have a
higher limit on your credit card, and will be able to
borrow an amount that corresponds to your amount of
available credit. Where a payday loan is usually payable
in less than 30 days, a credit card cash advance allows you
to absorb the new debt into your existing account, and will
give you more time to repay the loan.

Borrowing money from friends or family is a sensitive area
for many people. It is, like a payday loan, a last resort
in most cases. It really depends on the relationship you
have with the person from whom you would be borrowing
money. If you choose to get a loan from family or friends,
you should agree on a specific repayment plan so there are
no misunderstandings or hard feelings.

Regardless of where you borrow money, always learn the
details of the loan agreement before you sign anything.
What is the interest rate of the loan or the total amount
of finance charges you will incur? If you are unable to
repay the loan as scheduled, is it possible to roll over
the loan, and what kind of fee will you pay for the
additional time. If you resort to getting a payday loan,
compare several lenders and choose one that offers the
amount of money you need at lowest possible cost. Finally,
you should continue to improve your credit; the better your
credit score, the more options you will have when borrowing
money in the future.

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Gregg Pennington writes articles on a variety of topics
including payday loans, bad credit loans, and other sources
of money available online. For more information about
payday loans and cash advance loans visit
http://www.onlinemoneysources.net/payday-loans.html