Payday loans are not the only quick-cash loan and financial instruments that you can use to address current needs. The following are the alternative financing and loan options for people with bad credit:
Apply for No-Interest Loan Schemes (NILS):
NILS is a better alternative to a bad credit loan since it does not include monthly fees in your repayment amount. If you need to pay for essential goods and services such as household items, medical expenses, or car repairs, you can apply for NILS through a local provider. You can look up a list of NILS providers online. You can borrow up to $1,500 with up to 18 monthly repayments. NILS provider will still check for your financial situation to determine your capacity to pay off monthly payments.
A credit union loan is a good alternative to payday loans since this does not include high monthly fees. You can take out a credit union loan to 76 credit union loan providers in Australia. More than looking for your financial history, credit unions also take into consideration your standing as a member of the organization and your current capacity to pay outstanding debt.
Department of Social Services (DSS) Emergency Relief:
DSS offers emergency assistance to individuals with difficult financial circumstances. You can go to the DSS website to check for the local emergency relief provider to ask for their local relief qualifications.
Borrow money from family and friends if the option is there. This will reduce the risk of late payments and will hopefully be more flexible than a fixed-term loan.
- Overdraft – An overdraft facility with your banking institution may provide access to funds if your credit search isn’t fruitful. Like bad credit loans, you will incur fees and you’ll want to settle the overdraft balance as soon as possible.