No Fax Payday Loan Alternatives
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No Fax Payday Loan Alternatives
Posted by David on 01 May 2008 | Tagged as: No Fax Payday Loan Alternatives
When you have a short-term emergency need for cash, a no fax payday loan offers a fast and easy solution. But like any loan, there are pros and cons to payday loans. While speed and convenience are the key benefits of a payday loan, the fees you pay can be high. There are several alternatives to payday loans worth considering, such as the following:
An Emergency Fund
An emergency fund is savings that you accumulate equal to 3 to 6 months worth of expenses. For many, the though of saving up to 6 months of expenses seems impossible. One of the keys is to start by trying to save one week’s worth of expenses. For many, this one step would eliminate much of the need for payday loans. From there, you can build up your emergency fund dollar by dollar. Eventually you’ll find that you’ve saved up one month’s worth of expenses or more.
Credit Cards
Credit cards can be a convenient alternative to no fax payday loans. Credit cards are accepted just about anywhere, and most do not charge any interest if paid in full each month.
Overdraft protection
Most banks offer overdraft protection with their checking accounts. Overdraft protection kicks in when you don’t have enough money in your checking account to cover a check or cash withdrawal. The amount of overdraft protection depends on your credit history, but it can be as much as $3,500 or more. As with payday loans, however, banks do charge interest on overdrafts.
Unsecured lines of credit
Banks offer unsecured lines of credit that you can use in an emergency. They are similar to credit cards, except that the money must be withdrawn from the bank; they don’t give you a credit card linked to the account. You can, however, transfer money from the line of credit to your checking account via the Internet.
Home equity line of credit
If you own a home, you can apply for a home equity line of credit. They act like an unsecured line of credit, except that the bank has a mortgage on your home to secure the debt. That means if you fail to pay the loan, the bank can foreclose on your home. However, this type of credit typically comes with a lower interest rate.
These are the primary alternatives to a no fax payday loan. When deciding what is best for your situation, you should consider all of your options.
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