What Are Some Payday Loan Alternatives?

Dec 9, 2021
Money Saving Tips


When you find yourself in a rough patch, getting quick cash can be challenging. Many people resort to payday loans as their go-to option. Payday loans come with high-interest rates and can put your paycheck in jeopardy. Here are some payday loan alternatives to consider.

 

What's a Payday Loan?

 

payday loan is a short-term loan and you are typically loaned $500 or less. The payday loan is often repaid in a single payment on your next payday or from another income source such as Social Security or pension.

 

How Payday Loans Are Repaid

 

Payday loans are repaid by writing a postdated check for the amount of the loan in full. You can also provide authorization to automatically debit the funds from your bank account or credit union. If the loan is not repaid on or before the due date, then the lender may withdraw the funds from your bank account or cash the check.

 

What Is Needed to Get a Payday Loan?

 

To get a payday loan, you will need proof of income, identification, and an active bank account. You also must be 18 years of age or older. In spite of having an income and a bank account, you can still be disqualified from receiving a payday loan.

 

 

Payday Loan Alternatives

 

The following are payday loan alternatives to consider.

 

Car Title Loan

 

car title loan allows you to use your vehicle as collateral while still being able to drive it. Your vehicle secures the repayment of the loan. Checking your credit isn't a part of the process, so even if you have bad credit or low income, you can still qualify. A car title loan works great if you're in need of emergency cash.

 

Requirements for Getting an Auto Title Loan with Rapid Auto

 

At Rapid Auto Loans, you will need a driver's license for the loan. A title search will be conducted, and you'll need to provide proof of insurance while we have a lien on your vehicle. Unlike our competitors, Rapid Auto Loans will never take possession of your car as part of getting your loan. Within 30 minutes of the application process, you could be leaving with a check in-hand.

 

Get a Personal Loan

 

By getting a personal loan, you will repay at a lower interest rate than with a payday loan. If you have credit that is not up-to-par, sometimes credit unions will offer incredibly low-interest rates for applicants with bad credit. Keep in mind, you will need to be a member of the credit union. 

 

The obvious downside of a personal loan is that you need to have at least some credit history and there's a good chance that you won't be approved if you don't have a FICO score above 580. If you are approved by your bank for a personal loan, expect to pay much higher interest rates.

 

Obtain a Loan from a Friend or Family Member

 

One sure way to save money on interest is by borrowing money from a friend or family member. They may be able to loan you the funds you need, and you won't have to worry about a credit check. There are a couple of things to consider here, though...

 

One, many people don't have a family member who has the financial means to lend them a significant amount of cash. According to research conducted by LendingClub, 54% of Americans report living paycheck to paycheck in 2021. The same research indicated that 21% of them struggle to pay their bills, which means they have little to no money leftover after they spend their income.

 

If you are lucky enough to have someone who can afford to spare a few hundred or even a couple thousand dollars, it could have more negative consequences on your relationship than it's worth...

 

Contact a Charity or Local Nonprofit

 

Nonprofits and community centers are great funding sources, especially when you're in a financial situation that leaves you strapped for cash. Between managing routine expenses such as rent and groceries, unexpected emergencies can come up. If you don't have a car that you can offer up as collateral for a car title loan, or if you simply don't have the money to pay back a loan right now, local groups could be a great option for helping you get back on your feet. Remember that when dealing with charitable organizations, you may need to provide proof that you're in need of assistance.

 

If you're a Florida resident who's struggling financially to provide the basic necessities for you or your family, look into one of these Florida Assistance Programs. Depending on your situation and needs, help may be available.

 

Pawn Shop Loan

 

Obtaining a loan from a pawn shop is another option to avoid a payday loan. Albeit, not the best option in the mix... To get a pawnshop loan, you will need to provide the establishment with something you own that has value. The staff will appraise the value and determine if they will issue you a loan in exchange for your item. In order to get your item back, you will need to pay off the loan in a time frame that is agreed upon between you and the pawnshop.

 

There are two blaring downsides to a pawn shop loan. First, they're expensive, with interest rates falling on average between 5% and 25%. Second, if you fail to make your payments on time, they can pawn your item and pocket the cash for themselves. So, rather than pawning family heirlooms, might we suggest a car title loan instead?

 

You Have Options When It Comes to Payday Loan Alternatives

 

Many people have found themselves in unfortunate financial situations where they need quick cash. At Rapid Auto Loans, we don't do credit checks or require bank statements to determine if you qualify for a car title loan. To get an auto title loan, the only thing you need is proof that you are the owner of the vehicle and proof of insurance, and you can be approved the same day.

 

Instead of playing Russian Roulette with your paycheck or your great grandmother's diamond ring, consider a car title loan instead. And forget what you've heard--we're different from the other guys. Rapid Auto Loans allows you to take out a loan with peace of mind using thoughtful lending solutions. To learn more and experience the Rapid Auto difference, apply for an auto title loan online or call 954-678-5781

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Rapid Auto Loans is a consumer finance company licensed under Florida 516. The term title loan is used for marketing purposes only.
All loans have a repayment period of 12 months and there is no minimum prepayment penalty. Interest Rates are determined and approved by the State of Florida based on the borrowed amount and the maximum APR (which includes interest rate plus fees and other costs for a year) is 30%. You pay interest only for the time your loan is outstanding. Below is a representative example of the total cost of the loan, including all applicable fees:
3,233.68

APPROVED LOAN AMOUNT

0.00

Government Fee

25.00

Credit investigative Fee

11.55

Documentary Stamp Tax

3,270.23

Total amount Financed

11/1/2016

Original Loan Date

29.07%

APR

316.39

Monthly Payment (x12)

Rapid Auto uses “Auto Title Loans” for advertisement purposes only and provides auto equity loans. The lenders are licensed under the “Florida Consumer Finance Act” under Florida Statute 516 and as such lenders loans is exempt from any licensing requirements under the “Florida Title Loan Act” to the extent that any of lenders activities involve the making of a loan of money to a consumer secured by bailment of a certificate of title to a motor vehicle.