What Are the Alternatives to A Payday?

It is better to look for more healthy financial alternatives to borrow money, even for those borrowers with a low credit score.
 

What are the Alternatives to a Payday?

Borrow from Family/Friends

A good alternative for getting emergency cash is sourcing from close family or friends. At times, such borrowing would even mean getting an interest-free loan. Ensure that you have a proper loan agreement in writing to avoid any conflicts or misunderstandings on the loan terms with your family/friends. Any failure to repay this type of loan may not hurt your credit score, but it could result in strained relationships with your family/friends or legal action.
 

Go for a low-interest Credit Card

You may be short on cash, but you still try and get a low-interest credit card. This credit card would help you to manage your expenses till your next payday by paying interest at a lower rate as compared to the high-interest payday loans. Check for credit cards whose APR is lower than the APR of a payday loan. Lenders who offer low-interest credit cards may however want a good credit score on the part of the borrower. You can even opt for a balance transfer card to manage funds.
 

Avail your Overdraft

Go for an overdraft against your bank account. This option could work similarly to getting a credit card. However, you will get more time to repay the overdraft amount than a payday loan, making it a feasible option. 
 

Get a Personal loan

Today in the age of instant loans, getting a personal loan has become very easy provided the borrower fulfils the basic eligibility criteria. Most traditional lenders providing personal loans look for a good credit score and a regular source of income/salary. Now, there are many secured online loan platforms like Herofincorp offering collateral-free instant personal loans at low-interest rates. These instant online apps provide hassle-free loan documentation, real-time approval process and accept borrowers with a minimum income/salary.
 
A personal loan is a good option for those looking for alternatives to a payday loan. Herofincorp is one of the user-friendly fully digitized loan app, powered by Hero FinCorp, - the fastest growing NBFC in India. The app provides personal loans which get disbursed within a few hours, making the overall personal loan process seamless and enriching for the borrower.