4. Try to get a loan from a bank or credit union
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Question & Answer
What is a payday loan? Do I have other options?You may think a bank or credit union will not lend you money. But the only way to find out is by asking them. Even if they did not give you a loan in the past, they might give you one now.
Though you may still have money problems, if your situation has changed, you might be able to get a loan. If you now have a regular income, a bank may lend you money.
A bank or credit union may also lend you money if you get a co-signer or . See if you can ask a relative of friend to .
Getting a loan from a bank or a credit union can be better than getting a in many ways. For example, when you borrow from a bank or union:
- You pay a lower rate. Banks and credit unions charge interest rates that can be more than 20 times less than the rate you pay for a payday loan.
- You can get more time to repay the loan. Payday loans must usually be repaid within 14 to 28 days. The longest you will get a payday loan is for 62 days. Banks and credit unions can lend you money for much longer.
- You may be able to borrow more money. The most you will be able to borrow in a payday loan is $1,500. And payday lenders cannot give you more than 50% of your net monthly pay per loan.
