Short-term loans have become a very popular option for people struggling with financial pitfalls and unforeseen emergencies. That is why many people are deciding to choose a payday loan alternative as opposed to seeking lending through their local bank or lender. The main reason is that the benefits and requirements are simpler and much easier to follow. Here are just a few examples of some of the benefits and how it may be the best financial solution for you right now.
What are the Requirements for Payday Loan Alternatives?
Approaching your credit union or bank about borrowing money can seem like a grueling process. It initially begins with giving a thorough explanation as to why you need to borrow the money in the first place. This can feel uncomfortable and unnecessary. In addition, there is often an extensive list of conditions that you must meet, including a high credit score and no current or past unpaid debt. If you were to choose a payday alternative loan, your current FICO score and credit report are irrelevant and not a sole determining factor as to whether you’ll get approved or not. And oftentimes, there are no questions as to what you’ll be using the money for. In fact, the prerequisites are less strict and stringent than most traditional loans. All you’ll need is:
- *A job or proof of a steady income flow.
- *In some cases, a small down payment.
- *Valid phone number and address.
- *Active checking or savings account.
Seems pretty simple, doesn’t it? Meeting these requirements is easy for most people. And when you’re in a bind with your financial situation, a payday loan alternative is a great way to get your hands on some fast cash.
How Much Paperwork is There?
When you go into your credit union to apply for a second mortgage or personal loan, they typically need a lot of paperwork and then, even more paperwork to support that paperwork. For many people, it can be challenging to find an old pay stub or proof of receipt of something you paid over a month ago. Payday loan alternative programs don’t require a lot of paperwork. In many cases, you can show proof from your smartphone of your utility bills or bank balances with just a simple click.
Are the Processing Times Extensive?
At most banks, larger loans can take up to 30 to 60 days just to complete and process. This is after a grueling underwriting process that can be unpredictable and ultimately requires even more proof of income and verification of accounts. A payday loan alternative is typically fast, and in many cases, you can get your money the same day that you apply. They will either cut you a check or have the money that you requested deposited into your account by the end of the business day.
What Repayment Options Should You Expect?
Whenever you hear the word short-term loan or payday loan alternative, you may instantly think of high payments that are due just a few days later. The main benefit of seeking a payday loan alternative is the flexibility to pay the total amount back. If you need more time, make sure you set that up with your customer service specialist. Repayment can be as flexible as your payment schedule is. And the other advantage is that you may pay down on the loan at any time you feel necessary. This will actually help reduce any added interest and fees on your account. You may also hear horror stories about collections of short-term loans that people are unable to pay back or pay back on time. Your best option is to contact your lender right away. Chances are, they will work with you to help come up with a reasonable solution to paying off your loan. In many cases, the loan can be extended or renewed to help pay down the interest and the original balance.
Don’t get caught up in a financial bind. A payday loan alternative offers a simple and affordable way to gain fast access to cash and put it toward your emergency or daily living expenses. Contacting a payday loan alternative company near you is simple and agents are immediately ready to help and answer all of your questions.