Online lenders want to establish a financial relationship with borrowers. They provide a confidential and secure platform for borrowers to access financial services. Once a customer, borrowers can apply for additional credit, request new loan terms, and utilize other benefits available to borrowers.
Answers about Payday Loan Alternatives
Borrowers and Lenders
- What is a better alternative to a payday loan?
- A payday loan alternative is a short term cash loan that doesn't require collateral, has fair interest rates, and friendly terms. In contrast, a payday loan usually neglects the borrower's ability to repay the loan, may require a car title or other collateral, and includes interest rates averaging over 400%.
- What can I pay for with short term financing?
- A short term loan has no restrictions regarding to how it's used. Purchase an oven, repair a car, rent a storage unit, or pay bills with a short term loan.
- Does having bad credit hurt my chances for getting a short term loan?
- No, having bad credit does not hurt your chances for getting a short term loan. In fact, applying for a short term loan is a preferred alternative to a payday loan.
- Are there income requirements for short term loans?
- Your net household income will impact how much you are able to borrow. That said, income requirements for short term loans tend to be quite lenient.
- When do I have to repay a short term loan?
- There are many loan products available. The repayment period will be determined by which short term loan product you choose.
- What interest rates are available for short term loans?
- Interest rates are tied to credit scores. Plus, how much you choose to borrow and the loan's terms can also factor into determining interest rates.
- Do I have to have a bank account?
- Yes, you or someone you know must have access to a bank account. Usually cash is deposited into a checking account in as little as 2 days.
- Are short term loans only for people with bad credit?
- No, borrowers from all credit backgrounds apply for short term loans. Sometimes borrowing only a small amount of cash is all you need and in your best interest.
What You Should Know
Applying for short term loan products with no collateral requirements means borrowers won't lose any assets in the event of a default.
Alternatives to a payday loan generally provide borrowers with a lower interest rate.
Short term loans can be used for bills, transportation, a mortgage, medical costs, and other general expenses.