Do you need a loan? Even if you have good credit, you might not want to deal with a bank and that is ok. People with good credit, bad credit, and no credit at all apply for what is known as an alternative payday loan every day. This is because of the many benefits that a loan of this type has.
- Flexible repayment
- Fast funding
- And minimal eligibility requirements
These details make this type of loan one that is attractive. Most of the time, the only requirements are that you have a source of income that can be verified, a checking account that is active, and a social security number.
Financial Surprises
We all hate it when unexpected financial surprises rear their ugly heads. They are only ever welcomed if they come in the form of a windfall. Unfortunately, most of the time, they appear as things like emergency electrical or plumbing repair, a decrease in our salary, car repairs, or even medical bills. These things can leave us in a jam pretty quickly.
They don’t have to, though.
There are things like alternative payday loans available that can get us out of these scrapes. The question is, how do you find the right one?
Shop Around
Just as you would with anything else, shop around. You will find that loans come with a variety of interest rates. If you don’t have any credit history at all, or if your credit history is bad, your options will shrink, though. However, there are lenders available who will look at more than just your credit score.
Know Your Credit History
Before you go out and try to get a loan, take a look at your credit score. If you want the best rates and the best deal, you will need to have excellent or at least good credit. If you have a bit of time before you will need the money, try to raise your credit score a bit. If your score is lower than where you thought it should have been, check for errors and try to get them corrected
Find out the Credit Qualifications
Each time you get a loan, you will trigger a credit inquiry. Each inquiry drops your score a touch too. If you apply to several lenders at once, this could greatly impact your credit score. Find out the credit qualifications before you apply.
Don’t Take it Personally
Often, when you are shopping for a loan, you will find that many traditional financial institutions don’t want to loan smaller amounts of money. This isn’t anything personal, they just make more money on larger loans. You might want to try an alternative to payday loans in this case because they specialize in lending smaller amounts of money.
Be Safe
If you are looking at alternatives to payday loans online, be safe. You might be looking at a scam. Some of these sites trick people into paying fees upfront for loans that never happen. Other people find out in a few years that their personal information had been sold to people who used it to buy things online and leave them holding the bag.
Before you apply for any type of loan, make sure that the company is one that is legit. Check for any online complaints and with the BBB (Better Business Bureau). When you make your application, only do so on a website that is secure (you will know they are a secure site by a little lock in the browser). Also look for some sort of third party verification from places like Verisign.
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