Alternatives to Payday Loans

Looking for alternatives to payday loans? When you’re in a financial pickle, turning to a payday loan can seem like such an easy thing to do. It gets you out of a rut at a difficult time when you have no money but, in desperation, you may not look at how much the interest payments will really cost you and you might not even care!

Instead of panic borrowing and turning to payday loans, there are loads of alternatives you can use that won’t see you stung by extremely high interest.

What are the Alternatives to Payday Loans?

 

TYPE OF CREDIT         PROS         CONS
Credit cards
  • Money can be withdrawn from ATMs
  • Lower monthly repayments
  • Card accepted in millions of shops
  • Expensive to take out cash from ATM
  • Easy to run up bills
  • Credit card providers keep pushing up limits
Bank and building society loans
  • Cheapest interest rates
  • Can borrow large sums of money
  • Fixed monthly repayments
  • Usually for larger amounts of money
  • Not suitable for bad credit scores
  • Occasionally, penalties for early repayment
Bank overdraft
  • Flexible
  • Ability to set a spending limit
  • Relatively cheap
  • Unauthorised overdrafts can be costly
  • 2m Brits trapped in permanent overdraft
  • Can be withdrawn at any time by the bank
Credit unions
  • Can borrow small amounts
  • Competitive interest rates
  • Open-minded to all credit scores
  • Require you to have saved with them prior
  • May not be able to help out quickly enough
Family friends
  • No interest is likely to be charged
  • Flexible repayment
  • May damage valuable long-term relationships
  • Negotiating can be difficult

 

Considering a Payday Loan

As handy as payday loans can be if you have a poor credit score and require emergency funds, these alternatives are likely to provide a cheaper means of borrowing money. However, if you’re looking for a payday loan to help you over then apply now.

Apply Now!