Brilliant Alternatives to Payday Loans
Brilliant alternatives to payday loans
Payday loans may be coming down in price but their selection criteria have recently been tightened up so you may find it harder to access a loan from one of these companies if you have a poor credit rating.
Look to your assets
If you are short of cash, either due to an emergency or you have spotted a bargain that’s simply too good to miss, then your assets could provide security for you to borrow against. Car Cash Point is one example of a company that will lend you funds against the value of your motor car, and as long as your vehicle is under 10 years old and free of finance you could have the money in your bank account within a short space of time. The repayments are made on a monthly or weekly basis, so they are easily manageable.
The sign of the three balls
Pawnbrokers have been around for a long time, and you can see their signs hanging over their shops all over the UK. Here again, you are borrowing money against the value of your possessions. You don’t have to be flogging the crown jewels – computers, musical instruments and many other objects of value can be traded at these establishments.
Ask a friend to act as a guarantor
A novel variation on the ‘bank of mum and dad’ or even ‘phone a friend’ is the growing use of guarantor loans. According to an article in The Independent, this type of loan is an ‘unsecured loan that requires a second person to act as a guarantor.’
In general this method of borrowing is much cheaper than a payday loan as the interest charges are low and it’s suitable for those with a bad credit rating. You can borrow sums between £1,000 to £7,000, though this may vary from company to company. Your guarantor will have to be a UK property owner, and have a good credit rating.
In general this method of borrowing is much cheaper than a payday loan as the interest charges are low and it’s suitable for those with a bad credit rating. You can borrow sums between £1,000 to £7,000, though this may vary from company to company. Your guarantor will have to be a UK property owner, and have a good credit rating.
Ask your union
If you work and belong to a trade union, see if they might be able to help you. The union Unite, in common with other unions, has set up a credit union for its members. The service is based throughout the UK and it’s well worth looking on the Unite website for details of your nearest branch. You’ll be able to access an affordable loan as a member of a credit union, their interest rates are low, and membership costs £5.
Trade on eBay or at a car boot sale
If your need for cash isn’t immediate, then why not sell your unwanted possessions on eBay or even hire a stall at a local car boot sale? You might be pleasantly surprised at the profit you can make. Also you won’t be getting into further debt by using this process to make some extra money. Just because you can’t stand certain films or CDs in your collection doesn’t mean others won’t love them. After all one person’s junk is another person’s treasure!
