Financial Alternatives to Consider During Emergencies

Having a not-so-fair financial record or a poor credit is indeed a major block to get approved for any types of loan, because you are regarded as a high risk customers, who might not be able to pay off the loan completely and leave the lender in between with a huge amount. And, it is indeed a definite fact that until you raise your credit score, you don’t become eligible for loans from the traditional sources like banks, since you don’t match the parameter that they follow. So, if you have been already turned down for loan applications or if you don’t want to pay high interest rates, over a long period of time, you must try out these alternatives

License: Creative Commons image source
License: Creative Commons image source

Apply to the Credit Unions

Credit unions are quite similar to that of banks, but are owned by their members, who have something in common. Either they work in a similar industry, living in the same geographical area etc. These unions are basically non-profit organizations, which pass along the earnings to members who are in need. Look for a credit union in your locality that lends cash to its members on an urgent basis and give them a call to discuss if you can get a personal loan. Make sure you compare the rates of interest from several institutions so that you can avail the lowest rates before signing the final paperworks.

Check out the lending options, online

There are a number of online agencies like that offer same day cash loans or personal loans within a very short period of time. Ask if any of your friends or family members have opted for these loans already and if yes, try to know about some of the reputed companies and their features. Just like the credit unions, positively check out the interest rates, processing fees, early repayment fees and all other probable charges with a number of agencies so that you can avail the best possible deals, available in the market.

Try to get a Peer to peer loan

Available in the market since 2005, peer to peer lending is one of the most popular lending options among borrowers. It is an online platform which will allow you to borrow the required cash from an individual instead of an organization. This process of lending has become immensely popular because it is a streamlined process which offers a win-win situation for both the investor as well as the borrowers. This is so because the borrowers have to pay a low interest rate and the investors can enjoy high interest rates. The things happen like this – borrowers post a loan listing which includes the amount that they want and the reasons why they need the cash, and the investors review the entire listing and choose the ones that meet their criteria. The peer to peer lenders screen all the applicants and check your credit rating and this becomes a part of your loan listing. Even if your credit score is a factor, an individual still might be more empathetic to your situation.

About the Author: Sam Payn is a popular author and is associated with a number of reputed blogs since the last 10 years. His areas of interest include personal finance, debt management, insurance etc.

Related Post