4 Alternatives To A Standard Bank Loan

Posted on: 24 August 2015

Maybe you do not have the best credit. Maybe you have some outstanding debt that you have yet to pay off. Maybe you simply do not like the rigmarole of going through a bank to receive a loan. Whatever your reason may be, maybe you simply cannot just receive a bank loan. That is fine as there are a number of alternatives to the status quo loan of a bank loan. In fact, some of them can be equally, if not more convenient, than receiving a bank loan. If you need a loan, check out these alternatives to a standard bank loan to see which option is right for you.

Payday Loan

A payday loan is one of the most popular forms of loan types that you can possibly find. The philosophy behind a payday loan is quite simple. First, find a creditor – businesses that offer loans are plentiful, and they exist almost everywhere in urban areas. Bring with you a blank check for the time being. A clerk at one of these institutions will ask you for the amount that you wish to be loaned as well as the interest rate. They will ask you to write out a check for the amount that is being loaned to you plus the interest; they will cash this check in 2 weeks. You will receive the amount that is loaned to you right then and there, however. The 2 weeks amount is what is referred to as a payday loan, as the general waiting time in between wages delivered is 2 weeks. Visit a site like http://www.paydayexpresscashadvance.com for more information. 

Pawnshop Loan

A pawnshop loan operates in very much the same way that a payday loan operates. You go into a pawnshop and you can write out a check for the amount you wish, plus the interest compounded and you will receive the amount up front for the cash you desired. However, since this is a pawnshop, you may also use any material objects that you may own as collateral in order to cover the entirety or simply a portion of the loan. Once you put the material object up for collateral, if you do not pay off the rest of the debt in the time that is agreed upon (usually 2 weeks, much the same as a payday loan), then you forfeit your collateral and the pawnshop will be able to keep your property.

Cash Loan From Credit Cards

A cash loan from a credit card is not offered by every credit card company, but many do offer this option and it is one that you may wish to consider using. A credit card company will give you cash, but the interest that is compounded onto the cash is equal to that which you use to pay the credit card company off. That is to say if your interest is at 1.1%, you will have to pay a compounded 1.1% on the amount of the loan that you took out. Although becoming less common, many credit card companies still offer this option.

Credit Union Salary Advance Loan

A credit union salary advance loan is actually quite similar to taking out a loan through the bank, although the process is generally considered to be much smoother. Generally speaking, you have a maximum loan ceiling of $500 and a Salary Advance account is created for you where you are required to deposit a certain amount in per month in order to repay the grand total of the loan.

There are numerous ways that you can avoid using a bank when it comes to taking out a loan. Hopefully, this article has taught you a few such ways.


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