Cash Advance Options Instead of Payday Loans

Everyone experiences a financial emergency at some point in their lives. For people with poor credit, the options available for finding money quickly can be quite limiting. Often, traditional bank loans are not an option, and payday loans can be incredibly expensive.

If you are looking for an alternative to high cost payday loans, but don’t qualify for bank financing, consider these options instead.

Micro-Lenders

A new breed of lender has entered the financing market. They occupy a space between traditional bank offerings and payday loans, providing a reasonable alternative for anyone in a financial bind. In some cases, borrowers may be eligible for low or no interest loans. Instead of focusing on creating sky-high profits for themselves, many micro-lenders try to make the borrowing process more affordable to those in the most need.

Repayment is scheduled over a period instead of being required in full on your next payday. This gives borrowers the funds they need to handle their current situation while allowing it to be paid back over time. This helps protect some of the country’s most vulnerable citizens from entering a cycle of debt that is hard to escape.

In fact, some micro-lenders are even supported by state government organisations, allowing them to function in a way that is backed by the community. The goal is to promote financial equality and to elevate those who are struggling the most due to the lack of affordable options.

Popular Micro Lenders Include:

The Good Shepherd Microfinance (GS) – The GS provides a range of financial services: NILS, is a low or no interest loans for amounts between a few hundred up to $3000. Learn more about these loans here.

Microloans for Centrelink – If you are collecting benefits there are a few options for borrowing small to medium sized loans. The general rule for qualification is that Centrelink cannot be your sole income source. Learn more about Centrelink loan options here.

Credit Card Cash Advances

Some credit cards offer the ability to receive funds in cash instead of paying with a credit card. This can provide a reasonable alternative to payday loan options. It doesn’t require you to open a new account to get the cash you need, and often offers more favourable interest rates than payday lenders.

Most cash advance features on a credit card can be accessed at an ATM or a bank branch associated with your card. This makes accessing the funds more convenient, and you are only limited based on the amount showing as available on your credit card at the time of withdrawal.

Most cash advance interest rates are higher than the rate connected to traditional credit card purchases, so make sure you check your cardholder agreement for information on the interest charges. You may also be charged a small fee for the advance, often with amounts no higher than 3 percent of the amount received as a cash advance, or a flat $5. The fee is attached to your credit card statement, so it does not have to be paid at the time the cash is received.

Be sure that the cost of a credit card advance is within reason and something that you’re comfortable with.

Benefit Advances

Another option, which is free of interest charges and fees, is that of a Centrelink Advance Payment. This service simply lets you obtain some of your future benefit payments now. It’s an ideal service to help with short falls in the monthly budget or unexpected financial expenses. Get the details on benefit advances here.

Overdraft Protection

If you only require a small amount of funds and can pay with an eligible debit card or cheque, you may consider using your bank’s overdraft protection. These programs work by charging a fee in exchange for allowing you to spend more than you currently have in your bank account. Often the associated cost is quite high, but there are no additional charges beyond that fee.

It is important to note that you can be charged a fee for every transaction that processes as an overdraft. For example, if your car breaks down, and you need a tow and repairs, if you pay for both the tow and repairs separately, you can be charged a fee for each.

You may be under specific time limits to return the funds borrowed through an overdraft, including any associated fees, so review your account information to make sure you fully understand the implications of using the service.

The above cash advance options are a great way to access cash and not pay an arm and a leg to do so. Accessing small to medium sized loans can be difficult and costly, taking advantage of cash advances through the government, non-profits or current accounts can save you money.

In addition to the options provided, don’t forget family and friends should you have people willing to assist. Along with selling or pawning unwanted items to get a hold of cash quickly.