Sometimes unexpected things come into our lives, and we have no choice but to deal with them and google “loans near me no credit check.” Fig is one of the solutions. It allows consumers to borrow money fast and pay them back within six months.
These are possible when a person has a medical bill to cover or urgent car repair. Yet, plenty of details should be considered — for instance, the interest rate and credit relation to a specific situation.
Fig Loans Overview
Fig Loan refers to payday alternative lenders. In addition to borrowing, consumers also want to build credit. So, this is an excellent option for those who need a short-time period of credit. However, take into account that it is available only in the following states: Utah, New Mexico, Texas, California, Illinois, Missouri, Ohio, and Florida.
The offer isn’t big and usually equals $200 – $300 at the first application. Later, if you want to use the Fig credit again, you’ll have an opportunity to borrow from $300 to $750. The payback period may be six months max. If you can repay faster, there is a minimum term of 4 months.
To get credit, consumers must provide a range of personal data such as bank account information, address, and Social Security number. When all the requirements are met, the consumer can be qualified for the loan on the same day or within one workday.
Fig covers several events – car repair, medical bills, and urgent home expenses. It is crucial to check whether you have any illegal activity in your transaction history and ensure you weren’t involved in any drug selling and\or purchasing.
While applying for credit, you have to consider all the terms and conditions. These depend on several factors, such as the state you’re currently living and registered in, the payment period you want to choose, and the borrowed amount.
For example, the APR intended for Missouri citizens is 229% for $300 with a 4-month repaying period. To count it up, the interest equals approximately $155, which means a total repayment of $460.
Pros and Cons of Fig Loans
Most bankers recommend applying for the Fig Loans only if it’s necessary. Yet, there are lots of benefits of credit:
- Fast issuing. The request is usually reviewed on the same day or the next day after the application;
- Fixed rates. Like all installment loans, Fig has a fixed price, and each consumer knows for sure how much they owe and what the due date is;
- Flexibility. Fig credit can be changed as often as you wish, only under one condition – your actions should meet the terms of the credit, such as the length of the payback and the amount of borrowed money.
Together with advantages go drawbacks. Unfortunately, no option is perfect enough, and consumers have to obey the given rules or decline them:
- Fixed amount. Once you take a mortgage for a certain amount, it cannot be changed. In case you need more money, you are supposed to open new credit. However, there is no guarantee you’ll be eligible to receive it after all;
- Monthly financial agreement. Consumers have no choice but to deposit fixed milestones each month. Also, if you miss at least one scheduled payment, it will cause a default on loan and a negative impact on your credit score;
- Fees and penalties. Each person who borrows any installment credit should be aware of the additional payments, such as application fees and prepayment penalties. Still, these depend on the lender you choose.
Best Online Loans like Fig Loans in 2023
Selection of the right mortgage is essential. Some of them may provide lower interest or don’t charge any fees, which allows for saving up a little and borrowing for your benefit. We have found the best online installment loans like Fig loans. Here, you can get acquainted with all the details and select the one that matches your needs.
Found in 2003 by Cashback LLC and based in California, Cashback Loans remain available only in that state. It offers small sums starting from $100 and up to $350 with an APR of 460% (annual).
To be eligible for the Cashback OppLoans, consumers must provide a decent credit score – the lender accepts the range between 300 and 640. The minimum annual income is supposed to be $13,200 or higher. Otherwise, you won’t be able to get the credit.
Like other installment loans, the cashback comes within one workday or shortly after the application is approved. The significant advantage of this credit is its availability. Consumers can send requests online or choose to confirm them via call.
Check cashing, gift card, and money transactions are also possible. In case you’re late with one of the deposits, the badcreditloans would ask you to pay a one-time fee that varies from $15 to $45.
Although the range of options isn’t that wide, the credit is good to use, and it can quickly help those in need. Moreover, the application process is convenient and easy to understand, so there should be no problems requesting it. Fast verification only adds positive points to cashback loans.
Moneytree is a good choice because it has no prepayment penalties or high fees. However, it is available in four states, which may require customers to deposit additionally.
On the positive side, the best loan online allows borrowing small amounts, which are usually enough to cover medical bills and DIY house expenses. Yet, there are also some disadvantages – for instance, high-interest rates and no online application opportunity (but it’s rare and depends on the state).
The range of borrowing is pretty broad. Consumers can start from $50 and go up to $5,000 as set in Nevada. Therefore, APR rises too. Usually, it is a three-digit number that varies according to the state terms.
In case you decide to apply for a Moneytree loan, you can choose whether you want to go to the local branch or do it online (works only for Nevada, Idaho, and Colorado citizens) with the following documents:
- Checking account data
- Address and contact number
- Proof of stable annual income
Once the website or the local point of Moneytree gets all the needed information and checks it, they will approve it or vice versa if there are any problems such as criminal background or low rates. The waiting period is short and won’t take longer than three business days.
The next among the best online loans, like Fig Loans, is ZippyLoan – an online lending platform that connects borrowers with online lenders. This platform is available for similar Fig loans, and you can get very low loan amounts, making the lender perfect for small-scale expenses.
The loan amounts range from $500 – $15,000, and the loan terms are from 6 months to 72 months. You can apply for a loan on this platform even with a bad FICO score, depending on the loan provider you’re connected with.
ZippyLoan uses a variable interest rate, implying that rates can fluctuate at any time during repayment. The APR can go as high as 35.89%, and you may be paying way more than competitors.
The loan provider does not demand any credit score requirement, nor does it ask for a minimum income requirement. Like Fig loans, the application process is fast, and you can have your funds disbursed into a designated account by the next day.
- Low minimum loan amount of $500.
- Your credit score does not affect your eligibility.
- Fast loan solutions from direct lenders.
- Interest rates are variable and can go very high. APR ranges from 7.04% to 35.89%.
- Low maximum loan amount of $15,000.
- Fees on short-term loans apply, ranging from $10 – $30 per $100 borrowed.
If you seek short-term loans, ranging from $100 – $10,000, Viva Loan is the loan marketplace to turn to. The provider connects borrowers with direct lenders and, so far, has successfully provided cash advances, installment loans, and more to residents of the United States.
The best part is that there’s no credit score requirement to qualify. Whether you’re with good or bad FICO score, you’ll definitely get a lender for you in the marketplace.
The loans from VivaLoan can be used for debt consolidation, emergency expenses, and credit refinancing. In APRs, you get up to 35.99% and can go higher, depending on the lender. VivaLoan does not offer its services to residents of Washington D.C., West Virginia, and New York.
Another highlight of this lender is that you can easily rebuild your credit, and there’s fast funding available as your credit loans, installment loans, and personal loans can be disbursed in 24 hours.
- Loans are good for debt consolidation, credit refinancing, and emergency expenses.
- Similar to Fig Loans, no credit check is required.
- Fast funding.
- A low minimum amount of $100.
- APR can go as high as 35.99% or more.
- Unavailability in states including NY, WV, and D.C.
This is one of the most highly rated lenders, similar to Fig Loans, popular for its unsecured personal loans. NetCredit is available to virtually everybody, as it requires no credit score to grant you personal loans, installment loans, and credit loans. However, the lender has some of the highest rates when compared with its competitors.
NetCredit’s loan amount starts from $1000 to a maximum of $10,000. The lender has a pre-qualification offer, and if you accept, a hard credit inquiry will be made. To be eligible for the loan across the states, you must be at least 18, have a verifiable source of income, a personal checking account, and an email address.
Similar to Fig Loans, NetCredit has a fast approval process, such that your loans may get disbursed the same day if you’re early enough.
- Fast approval loan.
- No fees on application, prepayment, or late payment.
- 24/7 customer services.
- Flexible repayment time from 6 to 60 months.
- High interest rates at 34.00% – 155.00%.
- High minimum loan amount of $1,000.
- Low maximum amount of $10,000.
- Up to 13 states cannot access the loan, including North Carolina, New Hampshire, Vermont, Massachusetts, Iowa, and New York, among others.
This online lender is relatively new in the business, and it caters to individuals with a credit score of 300 – 850. The personal loans from Lendly are especially targeted toward people with at least six months of job experience in need of emergency funds.
Lendly offers installment loans and personal loans on a small scale, giving you a maximum of $2,000. The loan terms start from 12 months, and the APR is variable and undisclosed by the lender.
There are no fees attached to getting a loan from Lendly, whether it’s prepayment or late payment. Unfortunately, the loan is only available in 12 states, including Alaska, Idaho, Wisconsin, Tennessee, Arkansas, Louisiana, Arizona, Texas, New Mexico, Minnesota, Utah, and South Carolina. To qualify, you must be at least 18, have a verifiable bank account, and have proof of employment.
- You can apply for a Lendly credit builder loan if you have bad credit.
- No origination, application, administration, or late payment fees are to be paid.
- Loans are approved fast.
- Reports to the three major credit bureaus.
- No pre-qualification check.
- Only available in 12 states.
- Low loan amount of $2000.
- Rates are undisclosed and could be very high.
This online lender is known for giving quick loans in small amounts to residents in about 15 states. The loan provider offers loans in the range of $100 – $1,500, and they come with some of the highest rates charged to your credit cards on repayment.
SpeedyCash grants you loans within hours of application, and you’ll get the funds disbursed the same day or early the next day. As the small-sized loan it is, you can use the funds only for a limited number of things. These include small home repairs, minor healthcare funds, and emergency purchases.
To qualify for a SpeedyCash cash advance, you must have a steady income source, a verifiable bank account, a valid ID, and proof of residency. There’s no prepayment penalty on the loans, and automatic payments are allowed from your checking account.
- No prepayment penalty.
- Automatic payments are allowed.
- Low minimum amount of $100.
- Low maximum amount of $1500.
- Loan fee ranges from $5.36 – $420.
- Very high APRs ranging from 176.61% – 729.82%.
- Loan terms are undisclosed and could be inconsistent.
- Origination and late payment fees may apply.
- Installment loans are offered only in Illinois, Colorado, South Carolina, Wisconsin, New Mexico, Texas, Oklahoma, Ohio, Missouri, Alabama, Mississippi, and Nevada.
Power Finance Texas
Power Finance Texas loan is one of the best loan options across the state and the country. There are plenty of benefits. It has several stores in major state cities such as Dallas, El Paso, Huston, etc.
Also, applications are available both at the point and online ways. In addition, as with most installment loans, the provider approves the request on the same day or max. within 24 hours.
Consumers with different credit scores are eligible to apply. The offer varies between $300 and $1,250. The OppLoans can be used for any purpose – a short family journey or an unexpected car repair. Customers shouldn’t worry too much because Power Finance Texas always considers their situation and current liabilities and expenses.
However, to be able to apply for credit, employment, and a minimum of $800 ($1000 if used on the website), monthly income is mandatory. Also, you need an active checking account that was opened at least a month ago.
On the negative side, the loan has very high fees. For example, nominal interest is 10% annually, which equals nearly $11 of total interest from $300. Yet, there are CAB fees as well. For the same amount of debt, it will generate $830. To sum up, customers are obligated to pay $1,141 in general. In addition, the APR level varies between 730% and 790%.
ASCIN is not a lender in comparison to all the previous loan options. Yet, it can help by connecting the consumer to a possible lender who can cover the consumer’s needs. So, ASCIN doesn’t provide money itself and cannot supply an exact Annual Percentage Rate (APR) if you have already applied for a loan.
Like all the standard operators and loan companies like Fig loans, Ascin recommends deciding in favor of a payday loan lender only if it’s necessary and you need a small amount of money in the short term. This type of credit must be an option only in an emergency situation, such as medical and unexpected housing expenses.
Considering that ASCIN plays the role of broker, it doesn’t set the rates. However, it works accordingly to general norms – for example, the operating APR varies between 390% and 790%. Also, if you are late with your monthly deposit, you should pay the late fee, which is usually 15% of the loan balance.
ASCIN advises strictly adhering to states’ conditions and keeping up with all the updates. In addition, take into account that the online broker is available only in the following places: New Jersey, New York, North Carolina, West Virginia, Vermont, Pennsylvania, Maryland, Georgia, Connecticut, Arizona, and Massachusetts.
Cashback Loans are super-quick small loans offered to residents of California. The loan amounts range from $100 – $300, but as small as this amount is, you’d be paying stupendously high rates.
The payday loan alternative has an interest rate that goes as high as 460% annually, with terms just as tight. You’re expected to pay back the cash advance within 14 days, but it could be more, depending on the amount.
To be considered for this loan, you need to have a minimum income of at least $1,100. As you take the loan, you must also repay the loan fees, which range from $15 – $45. Unlike Fig Loans, Cashback doesn’t run your credit history through any of the three main bureaus.
The online application is available 24/7, and you can apply on-site, by call, or the easiest route, the official website. To qualify for CashbackLoans offers, you must have a checking account, a stable income, and a government-issued ID.
- Fast loan approval within 24 hours.
- No credit score requirement.
- Low minimum amount of $100.
- High APRs up to 460%.
- Loan fees range from $15 – $45.
- Minimum monthly income of $1100 is required.
This loan provider offers its services in 36 states of the USA, giving small-sized loans to American citizens. With MaxLend, you can borrow as little as $100 and as much as $3,000. These funds are great only for emergency loans, but the APRs attached to the provider are quite discouraging.
APRs are fixed and range from 471.78% – 841.45%. The repayment terms for APRs this high are also short, ranging from 6 – 12 months.
To qualify for a MaxLend loan, you must be 18 years or older, have a source of income, an open checking account, and must be a US resident. As a plus, there are no prepayment fees on personal loans, and you can get these funds regardless of if you have a bad credit score.
- There are no prepayment penalties applying to loans.
- The funds are great for emergencies.
- Super-quick approval within the day of request.
- Easy application process.
- Low amount offered at $100.
- No credit check required.
- Very high rates ranging from 471.78% – 841.45%.
- Fees are charged for every $100 you borrow, up to $14.75.
- Low maximum amount at $3000.
- Installment loans are not available in Arkansas, Pennsylvania, Virginia, New York, Vermont, North Dakota, Washington, Connecticut, Minnesota, Georgia, and Massachusetts.
Majestic Lake Financial
Majestic Lake Financial was created not long ago in California by several corporations. There is one specific feature of this loan – it doesn’t reveal a lot of information about its terms and rates. After certain unpleasant events between Majestic Lake and CBS News, the APR rate was revealed. It’s significantly larger than the APR of competitors – the number varies between 440% and 950%.
Most definers are the same as on other websites. The first possible borrow is any amount you need, between $300 and $1000. The second time, using Majestic Lake Finances, customers can borrow up to $1,500. Applications are reviewed and approved within one business day.
However, there is one significant disadvantage that can’t be neglected. Providers hide the terms and rates and allow seeing them only after applying. Due to violation and not following the Truth in Lending Laws and property disclosure, Majestic Lake can be named and considered as one of the bad credit loans.
Alltru Credit Union
Alltru is another option that consumers can take. In addition, it has plenty of advantages. First, it has no annual and no balance transfer fees. Applicants with any type of credit score are accepted, but the score amount should still be in the range of 600 – 800.
The APR level is lower than Alltu’s Union competitors require – for instance, the purchase APR is only 7.99% – 18%, and the balance transfer is 12.99% to 18%. Moreover, foreign transactions are also possible with just a 1% fee.
To be eligible to get the money, you need to meet basic requirements such as citizenship or permitted residency, ID, banking data, contact number, address, etc. Also, you have to be employed and have a stable annual income or be retired. Alltru has an age requirement as well – customers must be a minimum of 18 years old.
What is even more fascinating, the company provides Identity Theft Protection, Auto Rental Collision Damage waiver, and Fraud Liability. Moreover, Alltru Union is available in every state of America.
Types Of Bad Credit Loans
If you have a poor credit score and need loans to sort out financial crises, there are various loan options you can consider. The most common of all are personal loans, offered by hundreds of providers with favorable rates, fees, and payment terms.
Following these are home equity loans, home equity line of credit (HELOC), student loans, credit installment loans, and cash advances. In the following headings, we’ll detail what types of loans these are, when you can choose them for bad credit, and the advantages and disadvantages attached to them.
These are online loans that can be used for various purposes, including home expenses, car repairs, large purchases, and even debt consolidation. The versatility of these loans also shows in the amount, as they can range from as little as $1000 to as high as $50,000.
Personal loans are the easiest to come by, with many lenders available at the tap of a few buttons. You can get this loan with poor credit, with a few lenders offering loans that can help rebuild your credit.
Home Equity Loans
These are also known as equity loans or second mortgages, basically serving as consumer debt. In the case of home equity loans, you’d be borrowing a cash fund against the equity of your home, and the amount will be judged based on the difference in your home’s value and the mortgage yet to be paid.
If you want to apply with bad credit, you must look for credit unions and online lenders offering exactly this service. The APRs are relatively low, and the only disadvantage is plunging deeper into debt.
HELOC loans are similar to home equity funds, but this time, they revolve around lines of credit. They work pretty much like a credit card, where you can draw a loan and pay it back on terms agreed with the lender. You can have a ten-year draw period, and they’re with variable rates.
If you have poor credit, you can apply for a HELOC loan with credit unions that specifically give funds to people with poor credit. An advantage of this loan is its low-interest rate, and its disadvantage is your home serving as collateral.
Student loans are a sure payday loan alternative for undergraduates and graduates. You can get a student loan from traditional banks, online lenders, and credit unions. There are different types of student loans you can apply for, including undergraduate loans, MBAs, health college loans, and much more.
These loans can be granted to people with bad credit, depending on the lender. Its advantages include long terms and low APRs, while its disadvantage is long-term debt.
These can be auto loans, mortgages, large purchases, home repairs, and many more. The catch behind these loans is that they come with long repayment periods, which can stretch up to five years. However, you must meet with the scheduled payments, or else you risk paying additional fees.
Online Installment loans typically come with low APRs and fees, and you’ll find many lenders for individuals with a poor credit score. The advantages include low APRs and long loan terms, while the disadvantages can include long-term debt and several fees.
These loans are quite notorious for their exorbitant APRs and should be taken as a last resort in financial crises. Compared to installment loans and personal loans, you can get triple-digit rates and strict repayment times of two to four weeks.
However, a plus side is that you get the emergency funding within 24 hours of applying. California online payday loans are offered by many lenders, and they can influence their high rates as they wish. These loans are best for people with poor credit and no funding alternative.
These are loans you take against your credit limit, and you can do this with online lenders, your credit cards, or a traditional bank. Typically, a cash advance is to be paid back by your next payday, so they come in small loan amounts.
These loans should be taken only during emergencies, as they come with high APRS. Regardless, they’re a good payday loan alternative and are good for people with bad credit.
What Credit Score Do I Need to Get a Loan?
The financial services offered by Fig are independent of your credit score. This means you do not need to have a fair or excellent FICO score to qualify for their loan solutions. In fact, you can have a bad credit score, rating, payment history, or profile and get sizeable loan amounts from Fig.
So, if your credit score falls between 300 – 579 (poor), 580 – 669 (fair), 670 – 739 (good), 740 – 799 (very good), or 800 – 850 (excellent), you can get personal loans or installment loans from Fig. If you don’t know your credit score, you can make an inquiry with lenders that offer the services on their mobile apps or make an inquiry with credit bureaus.
Tips For Choosing the Best Apps Like Fig Loans
Whether it’s personal loans or installment loans you’re getting from lenders like Fig loans, these are some of the most useful tips to follow. As with any loan, we always advise you to check the features of the loan in the form of amounts, terms, fees, speed, and customer reviews. All of these factors will help you compare lenders and narrow your choices to the best one. We discuss these features in the following headings.
When picking a loan provider, an important feature to consider is the loan amount. For instance, each individual has a reason for wanting a loan. It could be for a mortgage, a car loan, an expensive purchase, or a student loan. Depending on this purpose, you’d be eyeing a loan amount of the small-scale, medium, or large scale.
For installment loans and personal loans, these funds can range in amounts from $1,000 – $50,000. With much quicker loans, such as a cash advance, you can expect an amount ranging from $500 – $15,000. So, the loan amount advertised by a lender should tie in with the purpose you want to use it for before picking.
Repayment terms are the periods stipulated for you to repay your loans. These vary largely with lenders, with some installment loans going as long as 72 months. This is usually the case with personal loans too, giving you a repayment period of up to 60 months.
The longer the repayment period, the better, as you won’t have to pay exorbitant parts of the loan principal monthly. However, with loans like cash advances, you might encounter payment periods of just a few months. It gets worse with payday loans that can be for just 30 days.
There are various fees you can incur when getting installment loans, personal loans, payday loans, or advances. These fees include the likes of an application fee, late payment fee, administrative fee, origination fee, and even a prepayment fee. Asides from this, there could be a loan fee that applies to every $100 you borrow, and the amount depends on the lender.
In addition to these fees are the APRs that will apply during repayment. What you want to look out for is a lender/loan with minimal to zero fees and low APRs. This way, you don’t end up paying more than twice your loan principal.
Speed of Getting Money
With traditional banks and financial institutions, your loans may take 3 – 7 days before disbursement. As such, online lenders are your best option if you want fast loans, promising your funds within 24 hours or, at most, the next business day.
The notorious payday loans and cash advances take even shorter times, granting you loans within a few hours. However, your best bets are personal and installment loans granted within 24 hours, as touted by lenders.
One of the most important pointers to the best Fig alternatives is reviews by past customers, with all rights reserved. If you want to check for reviews, do not rely on what the loan provider puts on their official website. Rather, you want to go on general loan review sites or make a quick google search and read reviews about the financial services of the provider you’re considering.
Things you need to look for include ratings, quality of customer service, impartiality about fees and rates, and loan terms. Go through first-hand narrations of customer experiences, as they’re the truths the loan providers will not publish on their sites. If the reviews are compatible with what they promise, you can settle for them.
How to Get Bad Credit Loans Like Fig Loans
If you’re with bad credit and you want to get loans similar to Fig loans, we’re ready to put you through a step-by-step guide. What you’ll encounter in this guide includes checking your credit score, planning how much you need, passing the lender’s requirements, settling for a lender, applying, and planning your repayment process. These procedures are tangent to you getting the best loans and financial services, similar to Fig. We highlight the steps in the following headings.
Check Your Credit Score
The first step in taking financial services from any loan companies like Lendly and Fig is to check your credit score. There are various ways to check your FICO scores, including lending platforms offering to do it for free or paying online services to help you check and give a detailed rundown.
You can also check it yourself by requesting a report from either of the credit bureaus you’re registered with. These crediting companies like Fig loans, usually have up to three slots over certain periods to demand your credit reports for free.
Scores range include 300 – 579 (poor), 580 – 669 (fair), 670 – 739 (good), 740 – 799 (very good), or 800 – 850 (excellent). Knowing your credit score helps you know if you’d qualify for a loan from the lender.
Plan How Much You Need
The next step of getting a bad credit loan is knowing what you want to use the funds for and what amount will be sufficient. In this case, you want to analyze the touted amounts by lenders, which will narrow your choices significantly.
Most lenders do not go beyond $15,000, while others offer up to $50,000. So if you’re planning to get a mortgage, pay off student loans, or want to buy a car, you want to go for the latter amount.
Check the Requirements And Details
After narrowing down your choices to a few, you want to go through the requirements and conditions attached to the loans. In conditions, what you’re looking at includes the rates, fees, and repayment times.
At all times, you want to avoid lenders with APRs surpassing 35.99%, as this would be bordering on exploitation. However, three-digit interests are common with the notorious payday loans.
In fees, you want to avoid loans with many fees such as originating, application, prepayment, and late payment fees. In addition, the repayment times should be long and favorable to the fractions you’ll be paying per month.
General requirements to look for include a valid government ID, social security number, a verifiable bank account, email address, phone number, and proof of residence. Special requirements by the lender may include a credit check, specified minimal income, and a history of debts.
Choose The Best Lender
The requirements and eligibility criteria should be the deciding factor on what lender to choose from the few you have on your list. You must compare and select the lender that ticks all the boxes and has favorable rates and fees to go with it. However, if you’re still in doubt about picking between two strong lenders, look for extra features.
These extra features can include an assigned customer service representative that caters to your inquiries and complaints. The features continue with a mobile application, free credit score checks, and credit counseling. Whatever lender checks these features should be your top choice, without a doubt.
Once you’ve selected an online lender for your personal and installment loans, the next step is to apply. Fortunately, these lenders have streamlined services where you can easily complete an online application form within minutes. Their services are also always available on all business days, and they’ll have stipulated hours depending on the company. To apply, follow these steps.
- Log onto the official website of your chosen lender and create an account (if required).
- Fill out the online application form stating the loan amount you need, your personal details, and your bank account details.
- Upload the necessary documents, including a photo ID issued by the government, your social security number, and proof of residency.
- Submit the online application form and wait for loan approval.
- If you meet the eligibility criteria, your request should be approved on the same day and funds disbursed by the next business day.
Plan Your Payments
After you’ve gotten your funds, the next thing to do is plan your repayment. When planning your repayment, you must take into consideration the fees and interests on the principal loan. These will help you know how much to set aside from your monthly income to pay back to the lender.
Most importantly, you must make the payments at the agreed time so you do not attract extra fees like a prepayment or late payment fee. As you meet your payments on time, the credit lender will report to the credit bureaus, helping you rebuild your bad credit profile.
What Are Alternative Payday Loans?
Alternative payday loans are funds granted to individuals by small credit unions and online lenders to replace traditional payday loans. Payday lenders, without a doubt, have a bad reputation for sky-high interests and fees that can result in you paying over 300% of your loan principal.
As such, online lenders and small credit organizations seek to bring alternatives with much lower rates and longer repayment periods.
These longer repayment periods alleviate the pressure you feel from getting traditional payday loans. It’s widely known that payday loans have strict loan terms, where you might need to make a payment with high interest within 14 – 30 days, depending on the amount. Alternative payday loans come with a maximum of 28% APR and a repayment period of at least 12 months.
When Should I Get an Alternative Payday Loan?
You should get an alternative payday solution if you’re looking for small personal loans in the range of $200 – $2000. As they’re paid over 12 months, they’re also considered great installment loans for expenses such as home repairs, car repairs, and wedding expenses, among others.
So, if you need funds for any of these purposes, you should consider an alternative payday loan. The best part about these loans is that there’s no credit score requirement to qualify.
However, you must pass the general requirements of being at least 18, having a social security number, and having a valid ID. When getting this loan, you should set aside a $20 application fee to fill out a request for the loan.
If you’re looking for a quick loan, an alternative 300 payday loan probably isn’t the best option for you. Since they’re mostly offered by credit unions, these loans can take up to 3 days to get approval and disbursement.
Pros And Cons Of Alternative Payday Loans
If you want to consider these alternative payday loans, then we must discuss the advantages and disadvantages in detail.
- Low APRs: Compared to the APRs of traditional payday loans, the interests on these alternatives are much lower and more favorable. For instance, in some states, the annual percentage rates on a payday loan can go up to 300%, which means paying three times your loan principal, excluding fees. However, the alternatives have a maximum APR of 28%. This is a huge and desirable interest rate on personal loans and installment loans.
- Lengthy repayment periods: In comparison to payday loans, you have a much better chance at meeting your repayments with the alternatives. Payday loans usually demand 14 – 30 days to complete repayments, which most people do not meet, causing plunging into more debt. But with the alternatives, you get a long payment time of up to 12 months for a maximum loan of $2000.
- Low minimum amount: You can borrow $200 with alternative payday loans for extra small expenses.
- Loan fees: For these personal finance alternatives, you incur an application fee of up to $20 on loan products.
- Low maximum amount: Although with plenty of benefits, you can’t borrow more than $2000 with alternative payday loans.