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Poor Credit Scores: Are Payday Loans the Only Alternatives?

You might as well consider the aid of short term financing if you’re looking for immediate cash and don’t have ideal credit scores to apply for a traditional loan. However, there’s no need to think that short term financing is your only rescue just because you don’t have decent credit scores to back your credentials as a borrower. Browsing through the list presented below will help you considerably to sail through temporary financial troubles with ease without having to shell out exorbitant rates of interest.

The reason why alternatives to short term financing are suggested is definitely because of the high rate of interest that it entails which further involves chances of a borrower being caught in a viscous debt trap. The existence of bogus lenders is another factor that has plagued the practice of payday lending in serious measures. Here is a list of safer alternatives to short term financing that can even be availed with less than decent credit scores:

Friends or Family:

Your family members or else your friends might the be the first persons that you may turn to for help when you find yourself embroiled in a financial issue. Please don’t hesitate to ask for help from your own folks as there’s really no shame in it. You can jolly well enter into a loan agreement whereby the loan amount, rate of interest, loan tenure everything is mentioned. If there’s a collateral involved, even that should be stated. You can refer to promissory notes from different websites.

Peer to Peer Loan

Peer to peer lending entails borrowing from individuals through online platforms. You as a borrower can update your loan listing stating the loan amount you need and why you need it. Investors who lend these loans, review the list and choose borrowers as per their criteria. You credit scores may well be included in their criteria but you might find that an individual is more considerate than a traditional lending institution.

Rope in a Worthy Cosigner

A worthy cosigner might turn out to be a lot of help while borrowing from a traditional lender. If your poor credit scores fail to inspire confidence among lenders about your repayment capacity, a worthy cosigner can help. A good cosigner means someone who has good earning and credit scores. If he agrees to sign the relevant documents agreeing to pay off the debt in case of your failure you might as well grab the chance of securing a traditional loan at moderate rate of interest. However be serious about repaying the debt on time as your inability to do the same might hurt the credit rating of your cosigner.

Conclusion

Therefore be rest assured that personal loans bad credit reportare not your sole recourse when it comes to meeting your immediate cash needs. Consider the options listed above and then settle for a choice. Please remember that short term financing should be the last resort if any of these options doesn’t fall in place. If you’re opting for the same make sure that you’re adopting due measures to take aid of a secured website.

{ 2 comments… read them below or add one }

Leni March 14, 2015 at 10:29 am

Interisting!

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Keith R January 10, 2017 at 9:12 am

I would be hesitant to ask a friend for a loan.If something happens, it could ruin the friendship.

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