Are you planning on making an expensive one-off purchase?
Do you need some fast cash to cover you until the end of the month?
Fast cash loans, online loans, quick loans and payday loans are several ways borrowers can apply for when they don’t have money in their bank accounts
However, credit cards are not for everyone – there are some great deals out there for borrowers, yet those with an adverse credit history will be unable to apply.
So, before you begin applying for these traditional forms of credit, why not consider these credit alternatives as they might be a better fit for your finances.
- Borrowing from Friends & Family (the most awkward)
So, let us get this one out of the way first.
Family members lending money to one another can provide emergency funding and help you avoid forms of acquiring credit with very high interest rates, like quick loans and cash loans.
Hopefully, borrowing a loan from a family member will be interest-free, and provided that if you fail to repay it will not harm the family relationship – this is the best option than cash loans m.
For those who borrow from friends, be aware that if they don’t repay, this will probably end the friendship.
- Credit Unions
A common reason people borrow money from their family and friends is that they are unable to obtain. Rather than take a high-interest payday loan to cover an emergency expense (payday loans should never be considered for long-term borrowing), those seeking credit could try a credit union.
Managed by and for their members; credit unions provide low-cost loans to each member. However, borrowers should only seek credit if they can afford the repayments.
- Prepaid Cards
If you need to make a purchase on a card yet do not want to apply for a credit card, or you want to use a card abroad. Prepaid cards don’t permit holders to spend past the amount that they have loaded onto the card, so it’s impossible to accrue debt, unlike a credit card where it can be tempting to spend more than needed.
Several prepaid card providers offer various promotional perks including cash back or discounts to make their products more appealing. Some prepaid cards may charge a fee for opening the card, and the majority do charge ATM withdrawal fees, especially for cash withdrawals abroad. Instead of using credit cards with high interest rates, fast cash loans for a few weeks is a better option.
- Peer to Peer Consumer Lending
Peer to peer lending is growing as an alternative to bank loans and overdrafts. This type of borrowing is very similar to borrowing from a bank yet instead you borrow from other individuals who lend you money as they wish to make more. Savers are getting little from banks in interest rates so lending that money to borrowers is a better way of increasing savings.
Credit checks and risk assessments are still part of the equation as any personal loan so for those with an adverse credit history this may not be for them.
What is different is that the interest rates vary and are considerably much cheaper than those offered by banks, especially on smaller amounts for shorter periods. Most bank loans only offer low-interest rates on higher borrowed amounts. As with any loan, if the borrower defaults on their repayments, their credit score will take a hammering, and additional charges and fees will be added to the original loan amount.
- PayPal Credit
PayPal customers can apply for Credit Online are assessed using PayPal’s proprietary credit scoring method, and if approved, are given a credit limit indicative on their score.
Then borrowers can then make purchases on their credit limit anywhere that accepts PayPal.
One positive about PayPal Credit is that each time a borrower spends a lot or more (within their credit limit), they will get in 0% interest for the four months, every time!
So, unlike credit cards who withdraw their promotional rates, PayPal credit does not.
Obviously, make sure you pay off the debt within four months; otherwise, this will negate any point of the interest-free purchase.
- Budgeting Loan (for those on low-household incomes)
If you’re already getting certain benefits and desperately need credit, then lower-income households could apply for an interest-free loan . Budgeting Loans are much cheaper than paying high-interest charges for borrowing from traditional banks or payday loan lenders.
A Budgeting Loan is designed to aid households to pay for essential or unexpected expenses if they are on a low income. Budgeting Loans can be used for new furniture to travel expenses or even additional costs from having a new baby or a sudden death in the family (funeral costs).