In terms of fast and easy loans that require little information from applicants, the payday type is the most expensive. The interest rate is astronomical, the balance has to be paid in one lump sum, and late fees are exorbitant. Most do not exceed a thirty-day term limit. People can end up in a vicious cycle of debt with no way out.
Many non-traditional lenders, such as Blue Trust Loans, offer alternatives to payday loans. The application is still short and can be filled out online, but the terms of the loans are longer. The lenient approval criteria makes these loans accessible to people with past credit issues, low income levels, and no credit history.
They are also useful for anyone who needs cash fast. During the weekend, even if people would qualify for a loan, no one can get a loan from a bank or credit union. If it is possible to wait for the next business day, it is wise to do so, but that is not always the case.
The most common alternative is called an installment loan. People can apply for loans in amounts up to twelve-hundred dollars. The terms extend for up to six months so it is easier to re-pay. Make no mistake, the interest rates are ridiculously high and late payment penalties are outrageous. The advantage is that the balance does not have to be paid in full within one month.
It is wise to be sure the terms and conditions can be met before signing the agreement. It is also wise to search for another way to handle the financial emergency. Check with friends or family to see if the money can be borrowed before seeking a non-traditional loan.
Another alternative is a title loan. This is a secured loan that requires valuable collateral. Most people use the title for their cars, or the deed for their homes. The rates are slightly lower, but the risks are higher. If the loan cannot be repaid, the lender can take possession of the collateral. This option should be avoided if at all possible.