Can’t Get a Loan? Here are Some Alternatives

Written By Jeff Hindenach
Last updated November 11, 2017

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November 6, 2015

Simple. Thrifty. Living.

Many Americans experience a financial hardship at some point in their lives and need a personal loan to help them out. However, banks sometimes make it very difficult to get a loan, especially if you have poor or bad credit. Thankfully, other alternatives to personal loans are available and easier to get.

If you have a good job but little in savings and need money for an unexpected expenditure, a payday loan might work for you. Payday loans are offered at high interest rates but are meant to be short term. They are typically for a small amount of money, so you should be able to pay them off quickly. When you get a payday loan, you give the payday loan office a check, postdated to a predetermined future date, in the amount of the loan you need plus any interest. In return, you receive cash. While the interest can be high, as long as you pay the loan back at the postdated time, you’re fine. However, if the check bounces, you may incur significant costly penalties. One of the most reliable payday loan providers with the lowest rates is LendUp or you can check out our review of CashNetUSA for a comparison.

Many credit cards offer cash advances, but these often carry a high interest rate, too. If you aren’t sure you can pay the cash back in a short time, it may not be worth it. The interest can quickly add up to a large amount of debt.

Many online services offer loans to people with credit problems of all types. However, you should research these services thoroughly and always read the terms of any loan. If you have bad credit, the interest rates may be very high. You also want to ensure that the service is reputable by seeking out reviews and testimonials. Good online loan services include Lending Club and UpStart. You can check out our review of Upstart here.

With any of the above alternatives, always consider how you’ll pay back the loan. It can be very easy to fall further into debt if any of the loans carry high interest rates and you can’t pay them back quickly. You should only consider these types of loans if there are no other viable options.

About the Author

Jeff Hindenach

Jeff Hindenach is the co-founder of Simple. Thrifty. Living. He graduated from Bowling Green State University with a Bachelor's Degree in Journalism. He has a long history of financial journalism, with a background writing for newspapers such as the San Jose Mercury News and San Francisco Examiner, as well as writing on personal finance for The Huffington Post, New York Times, Business Insider, CNBC, Newsday and The Street. He believes in giving readers the tools they need to get out of debt.

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