Bad Credit No Payday Loans

A payday loan is one of the simplest loans available and one of the easiest lines of credit to get. A borrower simply agrees to pay the loan off on their next payday. Payday lenders are willing to lend with people with bad credit because the loans will be paid back very quickly usually within a few days.

The drawback to payday loans is that they have to be paid off very quickly and the high interest rates charged on them. Many payday lenders also charge a fee if a person wants to extend the period of the loan beyond the next payday.

It is possible to get similar loans that don’t have the requirement of paying it off on the next payday. Similar loans to payday loans called cash advances or check loans are available. Many check cashing stores make these loans as do some pawn shops.

Modern payday loans

Payday lenders are getting increasingly sophisticated and are now offering some of the same services as banks. One excellent service that payday lenders now offer is preloaded credit cards; these are Visa or MasterCard credit cards similar to debt cards that money can be loaded onto. These cards can be used like to credit cards to make purchases at retail stores. They can also be used to make payments and pay bills on line.

Other services offered by payday lenders include wire transfer by money and bill pay. Many payday lenders will let people pay a wide variety of bills electronically at their store. Almost all payday lenders offer money orders which can be mailed for bill payment.

Alternatives to payday loans

The big disadvantage to payday loans is the high interest rates that are charged on them. Those with bad credit who need a loan would be well advised to search for alternatives to traditional payday loans.

One good alternative to payday loans is cash advances which are similar but can have lower interest rates. A good place to look for cash advances is online where many lenders offer cash advances that can be deposited directly into bank accounts. A similar loan is a check loan in which a person writes a check and leaves it with the lender. The lender then deposits the check on a predetermined day in order to collect payment for the loan.

Other alternatives to payday loans

There are many other alternatives to payday loans available to people with bad credit, some of which have better interest rates and terms. One alternative is credit cards which usually allow people to maintain a high balance if they make the minimum payment. Credit cards should be used sparingly because the interest charged can increase the amount of the balance.

Another alternative is secured loans from pawnshops which usually charge less interest. To get a pawn loan, a person leaves a valuable item such as a piece of jewelry, a gun, a tool, or a piece of electronics at the pawn shop. In exchange the pawnbroker makes them a loan which the person has to pay off within 120 days. If the person doesn’t pay off the loan, the pawnbroker keeps the item left as collateral.

Payday loans can be a handy source of credit but they can also be very costly so they should be used sparingly.