What should I do when my payday loan is rejected?

Use your credit card as a loan option

With improved technology and digital platforms, credit cards are now easier to acquire. In the past, you could wait from 2 weeks up to a whole month to get a response from the lender. now, you can just apply online from the comfort of your home. Even though credit cards are harder to acquire compared to pay day loans, they are less risky. In the end, both payday loans and credit cards have an effect on your credit score.

Scoop some cash from your emergency savings

Who knew savings can come in handy? You never know when financial emergencies may arise. If you have been keeping some savings in your account, it may be time to dig in a little. The good thing about taking from your savings account is that you won’t have to pay back the money.

Borrowing from one of your insurance policies is a good idea

Saving on retirement benefits or life insurance can come in handy when you have financial emergencies.  Your insurance broker can agree to lend you some money from your insurance plan. These loans do not have a tight repayment deadline. If you don’t make the payments on time, the broker will deduct the loan from your benefits. Like basic loans, you are supposed to pay them back with accumulating interest.

Lastly, borrow from a pawn broker

When you have no other choices left, you can go for this fast and somehow safe alternative.  Brokers hold a valuable item in exchange for a loan. The item must have a value of close to or more money you have received as a loan. Keep in mind that the brokers will posses your items legally if you do not make the payments.

Payday loans are not always easy to get. Some lenders may have strict regulations compared to others. If you have borrowed a payday loan in the past, and refused to make the payments on time, you may not be eligible for a substantial amount with your lender.

Here is what you can do when your payday loan is rejected

Borrow from friends and family

If you are facing a financial crisis that needs immediate action payday loans can offer you the best services. If for some reason your application got declined, the next action you take should be to borrow from your family and friends. The good thing is, they may offer you the loan almost instantly without too much screening, they don’t have a strict deadline and they can charge you interest free payments. It all depends on the amount of money you need.

Asking for an advance could work

Emergencies may appear mid month when you do not have enough money. The good thing is, most companies will offer an advance payment for their employees. Keep in mind that this idea may not work out if you have too many commitments to your salary. If you do, you may end up in an endless debt cycle. The good thing is, you won’t have to pay back any interest. An advance is repaid through your salary when your next paycheck hits the bank.

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