Once in a while, people find themselves in need of taking care of a financial need but the challenge that lies ahead is lack of money. It is usually easy for one to think of a payday loan as the perfect choice for taking care of the financial situation. However, did you know that there are alternatives to payday loans that are way better? The idea of having to repay your loan in one payment can turn out to be a challenge for you. That is why you should think of the following options as viable alternatives to payday loans.

Short-Term Loans

Short-term loans are one of the feasible alternatives that you can go for instead of payday loans. One of the advantages of a short-term loan is that it gives you a good amount of time to repay the loan amount. Since you will be paying in monthly instalments, it is way better than a payday loan that you have to return in a single payment. This is where the benefit of planning comes to the picture. The good thing is that you are able to come up with an effective way of how you will pay back the loan amount without defaulting. Therefore, you will be able to maintain a good credit score to secure future borrowing.

Guaranteed Loans

Guaranteed loans come in handy when you need to borrow money but you don't have a stable income flow to repay it. Similarly, you can borrow money but something happens and you fail to pay it back. If you take a payday loan, you will get into serious problems. Failure to pay will lower your credit score. A guaranteed loan simply means that a third party will offer to pay back the loan in the event that you fail to return the money. Such a person acts as a guarantor. This option makes it safer for you to take a loan and also increases the possibility of you being given a loan by lenders. Thus, consider getting a guaranteed loan as opposed to a payday loan.

Ask a Friend to Loan You the Amount

This is another alternative to a payday loan that you can consider. If you have someone you have a relationship with like a friend or a family member, you can ask if they can loan you the amount you need. Out of all the other options, this is the least expensive because it doesn't require interest. In most cases, you will only return the same amount that you borrowed. Again, repaying this loan is convenient because it is less stressful. All you need is to agree with the person giving you the loan on the amount of time you need to repay it.

If you will be in need of either short term or guaranteed loans, you can get in touch with a reliable credit broker to connect you with possible lenders to help you out. NowLoan is a registered and dependable credit broker that offers fast and safe credit brokerage services whenever you need financial assistance. All you need to do is to apply for your preferred loan on their online platform and you will be connected to lenders willing to give you the loan amount you need.