When asking a Sacramento bankruptcy lawyer or professional credit counselors if payday loans are a good idea the majority of them will tell you no…payday loans are a bad idea. The principle isn’t such a bad thing, just the practice: you usually get stuck in a repetitive cycle of extremely high interest rates and fees coupled with the need to have to return repeatedly to get a new loan. Because of the large number of complaints to both the Federal Trade Commission (FTC) and the Consumer Financial Protection Bureau (CFPB), there have also been a wide range of regulations and in some states such as New York even ban pay day loans. So today, we’ll look at new payday loan alternatives that have emerged to fill this vacuum.
Companies To Consider
The first alternative is LendUp which has coined its services as “payday loan alternatives”. LendUp allows borrows to borrow up to $400 for a month. They also claim that good credit is not required and you can get an instant decision online. LendUp also offers the “L Card”, an ingenious credit card built for individuals that have either no credit or those who are working to build their credit back up. An important fine print item we found from LendUp is that you will face extra charges for prepayment using a debit car via a transaction fee.
Secondly, we look at LoanSolo, an online payday site that offers low fees for shorter-term lenders, which makes it an affordable alternative. They claim a “super-fast application” that gives you immediate results and loan deposits straight to your checking account within one business day.
Lastly, we look at Avant, which is another alternative to personal and payday loans, whose aim is helping individuals build their credit. Avant differs slightly from LendUp as they offer personal loans in the form of actual installment loans. An important fine print item for Avant was that they do charge you an origination fee.
There are a number of other payday loan alternative sites out there, some of which are tried and true, and others are simply an online version of the payday loans that have plagued many individuals that don’t have access to credit cards or a savings account. If you are currently caught up in the payday loan cycle and can’t get out, contact your local bankruptcy attorney to discover how to eliminate that debt and place yourself back on solid financial footing.