Can't Qualify for a Personal Loan? 4 Alternatives to Try

Advertiser disclosure You're our first priority. Every time. We believe that everyone should be able to make sound financial decisions with confidence. Although our site does not include every company or financial product that is available on the market We're pleased that the advice we provide, the information we provide as well as the tools we design are independent, objective, straightforward -- and cost-free. So how do we make money? Our partners compensate us. This could influence which products we review and write about (and where they are featured on our site) however it in no way affects our advice or suggestions that are based on thousands of hours of study. Our partners are not able to pay us to guarantee favorable reviews of their products or services. .

Do you not qualify for a Personal Loan? 4 Alternatives to Try
Take a look at these strategies to pay for the gap in your income or a large expense -- and then begin preparing in advance for when you'll need money.
Annie Millerbernd Lead writer Personal loans, "buy now, pay later" loans, cash advance apps Annie Millerbernd is a respected NerdWallet expert in personal loans. Prior to joining NerdWallet in 2019, she worked as a news reporter for California and Texas, and as a digital content specialist at USAA. Annie's work has been cited by the press and was featured in The Associated Press, USA Today and MarketWatch. Annie has also been quoted in New York magazine and appeared as a guest on the NerdWallet's "Smart Money" podcast as well as on local TV and radio. She is based at Austin, Texas.





October 3, 2022


Editor: Kim Lowe Lead Assigning Editor Consumer lending Kim Lowe leads the personal loans editorial team. The editor joined NerdWallet after fifteen years in charge of the content on MSN.com which included food, health, and travel. Kim began her career as a writer for magazines which covered mortgage as well as the restaurant, supermarket and mortgage industries. Kim obtained a bachelor's degree in journalism from the University of Iowa and a Master of Business Administration from the University of Washington.







The majority or all of the items featured on this page are from our partners, who pay us. This impacts the types of products we write about and where and how the product appears on the page. However, this does not influence our opinions. Our opinions are entirely our own. Here's a list of and .



Personal loans provide fast, unsecured funds that can pay for anything from home repairs to medical emergency situations. Instead of needing collateral such as a house or car the majority of lenders will consider those with good credit and good incomes.
But what if you don't meet a lender's requirements? There are many people who have no alternative options to predatory, high-interest lenders. These options can help cover an income gap, but each has pros and cons.
1. Try non-borrowing options
See if you can find the funds by rearranging your budget and putting in some extra cash, says Tania Brown who is a certified Atlanta financial planner and financial coach. Check your budget for costs you could cut even for a short period, such as meals out or streaming services.
To reduce the cost of your existing charges, inquire with credit card companies, billing firms, or doctor's offices if they offer free interest-free installment plans She says.
Finally, couple pared-down expenses with from the side hustle of riding on rides or selling items you don't need anymore, Brown says.
2. Take a loan from a family member
If you're comfortable with asking your family member for money, that could be one of the cheapest borrowing options. It doesn't involve the need for a credit check or reporting, but it may require additional planning.
Bring a "game plan" which includes a loan amount as well as an interest rate, and repayment timeframe whenever you discuss the topic to remove the guesswork out of the decision, Brown says. For a small loan, an informal loan document between you and the lender could be enough. More substantial loans might require a formal contract.
The ideal situation is for an attorney to draft an official loan document that both of you agree to, according to Philip Mock, a CFP located in Tulsa, Oklahoma. There is a possibility of having to pay for the time of the attorney.
may come with tax implications, Mock says, so make sure you do your homework prior to making your loan agreement. For more substantial loans or for more complicated questions you should consult with a tax expert.
3. Split up a big purchase
A "buy now or make a payment after" payment plan can reduce the stress of a large purchase by breaking it down into smaller installments. BNPL plans are offered at most major retailers and can help ease the financial burden of a new computer or mattress, for example.
It's a quick, easy option because there's no hard credit test or lengthy application process, says Kristian Brennon, an accredited financial counselor in Kansas City, Missouri.
Because BNPL providers automatically withdraw the installment payments directly from your account, she advises setting payment due date reminders and ensuring your account won't be overdrawn.
4. Cash advance
Cash advance apps like Earnin and Dave provide a quick influx of a few hundred dollars with no credit check or fees and with lower costs as compared to payday loans. Like payday lenders, they require access to a bank account of the user in order to withdraw the repayment on the next payday.
Although they are convenient, they is it wise to use them sparingly as they can be difficult to budget for, Brown says. The amount you borrow today could leave an amount that is the size of your next paycheck, so she recommends anticipating that gap prior to borrowing.
"Make sure that you are getting exactly the amount you need and that you've mapped out a plan as to how you'll pay it for," she says.
Save money over time
Savings is the most secure method to cover emergencies and other costs. Mock recommends having 3 to six months of expenses saved however having one hundred dollars savings will help cover most unexpected expenses.
If you're looking for help in building your savings every month, Brennon recommends finding professional help through the Association for Financial Counseling and Planning Education. It's offering free counseling services to the public through about mid-December.
Make a list of your expenses for the year ahead such as costumes for Halloween and gifts for the holidays and plan for them in advance, Brown says. This way, your savings can be set aside to cover unexpected expenses or gaps in income.
"Life always is going to be full of ups and downs and the key is learning how to manage," she says. "That can turn what would be a crisis into a minor problem."
The post is written by NerdWallet and first released through The Associated Press.


About the author: Annie Millerbernd is a personal loans writer. Her work has appeared on The Associated Press and USA Today.







In a similar vein...








You can even go deeper into Personal Loans






Get more smart money moves - straight to your inbox
Join us and we'll send you Nerdy posts on the financial topics which matter to you the most along with other ways to help you earn more out of your money.

In the event you adored this short article and you wish to acquire more details relating to california payday loan $255 [bank-hgr.site] kindly pay a visit to the web-page.