Julia Anderson
Have you been thinking of applying for a payday loan since you have bills to pay and lack the cash to cover them? If so, you’re certainly not alone, as payday loans are extremely popular amongst those needing money in a hurry. What is a payday loan? It’s a loan that’s typically high interest, less than $500, and must be repaid with your next paycheck.
Is a payday loan the right move for you? Probably not, because even though statistics from Bankrate show that 12 million people use payday loans each year, here are several reasons to avoid them:
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- Only 14 percent of people who take out payday loans can pay them back.
- The average payday loan is worth just $375 and must be paid back in two weeks with $520 in fees.
- Payday loan interest rates can hit the triple digits, with those in Texas being the highest at 664 percent.
As you can see, payday loans are so costly that many borrowers probably wish they never got them, yet 80 percent of payday loans come within two weeks of paying off another payday loan.
In other words, if you take out a single payday loan, you may have to take out many more, as it puts you in a vicious cycle of debt due to high fees.
Now that you see the downsides to payday loans, let’s see where you can get personal loans that offer quick cash with more favorable terms.
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Personal Loan Lenders
Upstart
It can be tough to get a personal loan if you have no credit history. Luckily, Upstart is a lender that does not stress credit history, as they consider other factors like your education and work experience when making lending decisions. While the fact that you can get a personal loan from Upstart for $1,000 to $50,000 is great, you get the added benefit of building your credit as you pay back that cash.
OppLoans
Having no credit makes it hard to get a loan, but having bad credit could make it even harder.
OppLoans is a lender that works with applicants who have bad credit (they won’t even check credit in some cases) and offers loans in the $500 and $4,000 range. Like Upstart, repaying your loan here will build your credit, and you can also get next-day funding.
Possible Finance
Here is another lender that offers personal loans that build credit. Bad credit is not an issue with Possible Finance, as they have loans up to $500 with no credit check. Best of all, you could see the cash within minutes after applying online.
CashNetUSA
You could say CashNetUSA is somewhat similar to a payday loan. Their loans top out at $500 and must be repaid with your next paycheck. But we list them as an option since credit isn’t an issue, and you can get an approval decision and cash in minutes.
