Occasionally, you can save hundreds or thousands of dollars if you buy a product at the right time, but what if you don’t have the money then? As long as the sale will save you more money than you’ll have to pay in loan fees, payday loans can help you take advantage of special offers that you’d otherwise have to pass on while waiting for your next payday.
While a payday lender may conduct a credit check before payday loans in Yellow Springs giving out loan approvals, you typically don’t need as high of a credit score to receive an affirmative credit decision here than you would from a bank. In fact, some payday lenders don’t even include a credit check as part of their process.
That said, customers with credit difficulties should seek credit counseling from a credit services organization. A credit access business can help you obtain extensions of consumer credit in the form of payday loans or vehicle title loans.
Will a Payday Cash Loan Hurt My Credit Score?
Payday loans don’t show up on the credit reports of the three major credit bureaus: Equifax, Experian, and TransUnion. Therefore, a payday loan shouldn’t impact your credit score as long as you repay it on time.
Do Lenders Offer Same-Day Payday Loans?
Some payday lenders offer same-day loans, but many can’t promise that you will actually receive the money that quickly. Even if you can get a same-day payday loan, you should exercise caution. Same-day payday loans often come with an outrageously high annual percentage rate (APR), sometimes up to 400%.
Alternatives to Payday Loans
If your state doesn’t allow payday loans or you simply decide you don’t want to go that route, you still have plenty of other options for getting short-term loans.
Use a Credit Card
Because credit cards almost always have lower interest rates than payday loans, you might want to consider using an existing credit card when you need money-just make sure you pay attention to how much you spend to avoid crushing credit card debt.
Small Personal Loan
As long as you have a bank account and a high enough credit score, you can apply for personal installment loans. To repay the loan, you’ll need to make monthly payments over the next few years.
Payday Alternative Loan
If you’ve been a member of a federal credit union for at least one month, you may be able to apply for a payday alternative loan. This type of payday advance allows you to take out roughly the same amount of money as you would with a payday loan, depending on your state, but you may get more time to repay it, possibly up to six months.
Instead of borrowing money from payday lenders, you can often get a cash advance from your bank or credit union. However, you should know that these cash advances usually come with higher interest rates than your credit card does, as well as additional processing fees. Either way, it will be less than the payday loan interest rate.
If you don’t want to mess with your credit card, some mobile apps provide innovative cash advance options. You can ask for a-sometimes interest-free-paycheck advance, and when you get paid next, the app will automatically withdraw what you owe from your checking account.
If your employer offers to pay advances for employees who need them, speak to your supervisor about this option. You will probably have to schedule a meeting and write a formal, detailed request explaining why you need the advance and exactly how much money you need. You should be able to find the exact company policy in your employee handbook or through human resources.