Some jams you may be prepared for, such as your car needing a new tire or your electricity bill being a little higher than average. There are also times that big issues pop up that you are completely unready for. Problems such as your car going out and you needing to buy a new one or suddenly needing to move may be out of your budget. If you find yourself in a bad situation and you cannot get a traditional loan, alternatives are available. Here are four alternative lending options when you need money to get out of a jam.
Get a microloan
If you are unable to get a loan from a bank, this doesn’t mean that lending options are over. There are organizations, such as charities, churches, and other nonprofits that will provide loans to those who are ineligible for other sources. With microloans, the loans will be capped to lower amounts, so seek a loan of under several thousand is best. Be sure to read all of the rules for eligibility for microloans to make sure that you qualify and can show the appropriate documentation when applying.
Apply for a car collateral loan
If you currently own your vehicle, you have something valuable that can use as collateral. Take out a loan against your car to get the money that you need. If you are looking for a loan on your car, be sure that you understand the interest and payment terms. Get a loan that offers lower interest and provides you with lenient payment options.
Search peer lending groups
There are peer lending groups that operate as single person angel investors and group loan investors. If you need a loan that will allow you to get the money that you need without you needing to collect numerous documents and speak with a number of bank officials or departments, peer lenders are perfect. Though many perform credit checks, they are able to bend the rules as necessary. Several of the lenders may be interested in loaning money if you are in a real bind, despite not having perfect credit.
Seek out a payday loan
Though payday loans are not always desirable, these are one of the simplest loans to receive if you need money in your hand immediately. There are both statewide and nationwide payday lenders who may be able to provide you with quick cash. In order to receive a payday loan the documentation that you will need is:
– Proper identification
– A working checking account
– Paycheck stubs
Once you submit these items you will receive either a check, cash, or a bank wire the same day. Though the interest on payday loans is higher than on other lines, being able to get the money immediately may keep you from bigger issues later on.
Figuring out alternative methods to bank loans can help to steer you away from major financial damage later on. Instead of panicking when you realize that you are in a fix, keep these four lending alternatives in mind so that you can fix your issue. Once you are out of your financial jam, be sure to reflect on how to start a good savings plan so that you will be prepared for future issues.