Low Cost Payday Loans
An emergency arrives and a person needs funds prior to payday. The Cash advance stores on each corner may appear to provide the solution, but should be the last resort. These are not low cost payday loans. It might be wise to prepare for this problem whether needed or not, but you will need some self-discipline.
Line of Credit at your bank
When you open your checking account, which is one of the requirements for a payday loan from the corner money stores, a consumer should make an additional application for a line of credit attached to the checking account. This line of credit prepares for the emergency. Maybe you will never need it, but you would not need to resort the more expensive options. The Annual Percentage Rate (APR) for these loans are lower than payday loans. When the emergency occurs, you transfer funds from the line of credit to your checking account. On payday, you pay the loan off. Your bank becomes your payday advance loan providers even though it operates differently. You control this payday advance loan
A problem and caution exists .Some might not pay the amount on payday, but that is the same problem with payday advance loans. Some individuals get into the habit of continuously getting a new payday advance loan. Every payday arrives with a postdated check arriving for posting to the checking account. The other caution is that if the line of credit payment is going to prompt a payday advance loan the problem multiples. Once the condition prompts a payday advance loan as a solution, counseling with a credit counseling service needs to occur.
Some community credit unions are moving into this field so the institution can offer these loans with a lower interest rate. The option illustrates an advantage of maintaining at least one account with a credit union. Credit union members are owners of the credit union so the loan rates are lower and the interest rates paid on savings are higher that traditional banking institutions.
Advances from others
Most do not want an employer or family members to know of the problem, but the humble action might prevent future embarrassment. Employers sometimes have limited numbers of cash advances for an employer or a loan program. Exhaustion of these options prior to traditional payday cash advance keeps the APR rate lower, maybe even zero. These same people probably know of your problem. If only a once in a lifetime or rare problem, reluctance probably will not occur.
Colleges frequently provide short-term loans for students at the institution. These loans are usually only for a month or three months at most. These have low APR rates but vary with the institution. If this is an option, it is worth exploration rather than the high rate of a traditional payday cash advance loan.
Advances to self
Do you have accounts or policies that you can borrow as a cash advance? This is also worth exploration prior to a payday cash advance, but need immediate repayment.
Payday cash advances look attractive in an emergency, but can place a person or family in danger. Plan for financial emergencies and explore all option before using traditional payday cash advances.