What Is a Payday Loan?
A payday loan is a short-term, high-interest loan for a small amount of money — often $500 or less — that is usually due on the borrower’s next payday. Since approval and funding are usually quick and easy, many people turn to payday loans when they need emergency cash. But this isn’t always for the best.
Payday loans are usually only available in small amounts, limiting their helpfulness for borrowers who face larger financial hiccups. And since repayment must happen all at once, instead of in gradual installments, they can be difficult to pay back — especially with their high interest rates. Because of this, it’s wise for potential borrowers to consider alternatives to payday loans before applying for one.
Better Alternatives to Payday Loans
Payday loans aren’t the only way to get cash quick in a pinch. A personal installment loan, for instance, may be a better fit for your needs. Mobile apps such as EarnIn can help you borrow cash from your own future paychecks. And depending on the situation, even a small loan from a close friend or family member might be a better help in the short term — and not cost you as much in the long term.
High interest rates, unfriendly repayment terms, and other common components of payday loans are nothing to jump into hastily. So, evaluate all your options — don’t hesitate to compare payday and installment loan options side by side. Whether you need money for an emergency or to finance home renovations, you’ll find there are better alternatives to payday loans.
Payday Loan Debt Consolidation
Because of their difficulty to pay back, payday loans can easily put borrowers in debt. But there are ways to get out of it. Borrowers may be able to take advantage of debt relief programs. Or they could take out a personal installment loan to consolidate payday loan debt alongside credit card and other types of debt — a strategy that can save money on interest and make funds easier to repay.
Why Choose Lendly
Need financial support? With the Lendly loan by CC Connect, you can get the cash you need, right when you need it — even if you don’t have perfect credit.
Here are a few reasons to choose Lendly when seeking a payday loan alternative:
- Easy to Apply: You can apply online in a matter of minutes.
- Fast Funding: If approved, receive the full loan amount from CC Connect in your bank account in as fast as 24 hours.
- First-Rate Customer Service: Have questions? We have answers. Need a helping hand? Grab ours. Lendly supports you with world-class customer service from application to final payoff.
- No Hidden Fees: No application fee, no loan origination fee, and no prepayment penalty. With a Lendly loan, what you see is what you get.
- Automatic Payments: Lendly’s payroll linking technology makes it easy to set up automatic payments from your paycheck, so you never have to worry about forgetting a payment.
- Could Boost Your Credit Score: Lendly doesn’t want you to have bad credit any more than you do. That’s why your payment history is reported to the three major credit bureaus. Keep making on-time payments and you could see a bump in your credit score!
