Payday loans have been providing customers with short term financial solutions something which looks to continue for a foreseeable future. In the light of this, a number of payday loan lenders have emerged leading to an increased competition in the market. The increased competition has even made it hard to compare short term loan lenders considering the fact that most of them offer almost similar services. Even as payday loans become more and more popular, we cannot take away the fact that there might still be some alternatives available in the market. These alternatives are available for the consumers who feel that short term loans are kind of expensive. You can take a look at some of the alternatives that are currently available in the market for you.
a) Credit Unions
What is most attractive about credit unions is that most of their loans are quite affordable. Unlike payday loans, credit unions usually charge lower rates hence making them relatively inexpensive to manage. Credit unions are basically controlled by their members something which is worth mentioning. Their loans are as clean as advertised and therefore do not come with any hidden charges. No penalty is granted for early loan repayment.
b) Bank Overdrafts
Account holders have the privilege of entering into agreements with their banks for an overdraft arrangement. The good thing about this arrangement is that it can be done on an ongoing basis or over a fixed period of time. You only need to agree on the amount and the time period. On the flip side, bank overdrafts usually charge a daily interest rate on the overdrawn amount. Even with that said, it turns out that these form of cash advance is slightly cheaper compared to payday loans. If you are lucky enough, you can find a bank that allows for 0% overdrafts for limited periods of time.
c) Cash Advances from Employers
If you are lucky enough to work in such an institution, then you can have a reason to smile. In this case, your employee basically grants you a paycheck as advance money. The best thing about this is that since the money granted is advance money, no interest will be charged.
d) Cash Advance on Credit Cards
Most of these credit card cash advances are offered at a rate of 30%APR. This alone makes them cheaper as compared to short term loans. There are some companies which have a tendency of specializing in consumers with poor credit history and offer them this.