
It is certainly a brutal world for the small money borrower in the big city. Consumers tend to think paydays loan stores are the only place to go when they are in dire need of financing for an emergency appliance repair or medical procedure. Payday lenders don’t break your leg, but they may break your bank account.
Fortunately, there’s hope at the end of the tunnel. Several payday loan alternatives are now available. By this we are merely talking about small dollar loans. Check out these small loans online options worth your attention.
Visit Your Local Banker, Credit Union, and Employer
The answer to your financial crisis might just be right around the corner. Banks and credit unions are now offering small dollar loans for borrowers who don’t have stellar credit. These banks offer repayment terms of two-to-12 months, as opposed to the two-week repayment period preferred by payday lenders. You’ve got a better chance with a bank if you’ve got collateral, like a home, boat, or a car title to hand over.
Unfortunately, there aren’t many places people can go for small dollar loans. Even when credit unions make loans available, you need to be a member of the credit union and must have deposits on hand. These products aren’t going to the undeserved, unbanked portion of the economy.Even payday loans go to people with jobs and bank accounts.
Find a Community Loan Center
Community Loan Centers are a new and very good source of affordable small-dollar loans to customers looking for an alternative to payday loans. Taking one from a Community Loan Centers is always better in all manners than from a payday loan front. That’s if you can find one.
These centers are funded by participating employers, who offer the service to employees, who need access to small amounts of credit and are unable to qualify for lower interest loans from other lenders.
Online Loan Options
If you so decide to strike out with banks, credit unions, and your job, you still have endless choices, many online. You can always check out these small loans online options and choose the ideal one for your needs.
It is important to note that the small-dollar market is growing rapidly with small-dollar loan offerings available online and in store fronts, from banks and credit unions. Either way, you should always learn to exercise caution before using them to your advantage.
For starters, you need to be careful you understand the payback terms, and are confident you can meet them. Moreover, you should look for a long-term loan. ‘The longer the better.’ As for interests, ‘the lower the better.’
Always be wary of lenders who start with a high interest rate and promise to lower your interest rate as your credit score improves. Look for a lender who allows you to renew the loan without chafing another round of high fees. You can always check out these small loans online options before settling on one.