Can't Qualify for a Personal Loan? Four Alternatives to Consider

Advertiser disclosure You're our first priority. Everytime. We believe that everyone should be able make financial decisions with confidence. While our website doesn't feature every company or financial product on the market, we're proud that the advice we provide and the information we offer and the tools we create are independent, objective, straightforward -- and completely free. So how do we earn money? Our partners compensate us. This may influence which products we review and write about (and the way they appear on the site), but it doesn't affect our suggestions or recommendations, which are grounded in many hours of study. Our partners are not able to be paid to ensure positive ratings of their goods or services. .

Are you not eligible for a personal Loan? 4 Alternatives to Try
Explore these options for securing the gap in your income or a large bill . Then, begin preparing in advance for when you need money.
Annie Millerbernd Lead writer Personal loans, "buy now, pay later" loans, cash advance apps Annie Millerbernd is a NerdWallet expert for personal loans. Prior to joining NerdWallet in the year 2019 she was a news journalist in California and Texas and was a digital content specialist at USAA. Annie's work has been cited by the media and has been included on The Associated Press, USA Today and MarketWatch. Annie has also been quoted in New York magazine and was featured as a guest on the NerdWallet's "Smart Money" podcast, as in addition to local television and radio. She's located at Austin, Texas.





3 October 2022


Written by Kim Lowe Lead Assigning Editor Consumer loans Kim Lowe leads the personal loans editorial team. The editor joined NerdWallet after 15 years of managing content for MSN.com which included food, health, travel and more. Kim began her career as a writer for publications covering mortgages food, restaurant and supermarket industries. Kim obtained a bachelor's degree in journalism at the University of Iowa and a Master of Business Administration from the University of Washington.







Many 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 the location and manner in which the product is displayed on a page. But, it doesn't affect our assessments. Our opinions are our own. Here's a list of and .



Personal loans offer quick, unsecure cash that can cover anything from home repairs to medical emergencies. Instead of needing collateral such as the car or house Many lenders favor those with good credit and good earnings.
But what if you don't meet a lender's requirements? People who don't have alternative options to predatory, high-interest lenders. These options can be helpful in bridging an income gap, however, each comes with advantages and disadvantages.
1. Consider alternatives that aren't borrowing.
Check to see if you can find the funds by rearranging your budget and pulling in some extra cash, says Tania Brown who is a certified Atlanta Financial planner as well as a financial advisor. Examine your budget for expenses that you can reduce, even for a short period, such as meals out or streaming services.
To save on existing bills, ask credit card companies, billing firms, or doctor's offices if they have interest-free payment plans she suggests.
Then, combine your reduced expenses with a side gig like renting rides, or selling things that you don't need anymore, Brown says.
2. Take a loan from a family member
When you're comfortable asking your family member to borrow money, it could be one of your most affordable borrowing options. It doesn't require an identity check or credit reporting, but it may require additional planning.
Bring a "game plan" that includes the loan amount as well as an interest rate, and repayment timeframe whenever you discuss the topic to eliminate the guesswork of the decision, Brown says. For a smaller loan, an informal loan agreement with the loaner might suffice. Larger loans may require a formal contract.
In the ideal scenario, an attorney will create an official loan document that both of you have to sign, says Philip Mock, a CFP based in Tulsa, Oklahoma. It is possible that you will have to pay to the attorney's services.
may come with tax impacts, Mock says, so do your research when you're creating your loan agreement. For bigger loans or more complex issues you should consult with a tax expert.
3. Divide a large purchase into two
A "buy now and make a payment later" payment plan may help ease the burden of a major purchase by splitting it into multiple smaller payments. BNPL plans are offered at many major stores and may soften the financial blow of buying a mattress or computer, for example.
is a simple, quick solution since there's no credit check or long process to apply, says Kristian Brennon, an accredited financial counselor who is based located in Kansas City, Missouri.
Since BNPL providers automatically debit payment installments directly out of your bank account. She recommends setting payment due date reminders and ensuring your account won't be overdrawn.
4. Get a cash advance
Cash advance applications like Earnin and Dave give a quick infusion of around a hundred dollars with no credit checks and fees that are lower as compared to payday loans. However, like payday lenders the apps need access to the bank account of the user in order to take the payment upon the next payday.
Though convenient, should be used sparingly because they can be tricky to budget for, Brown says. The amount you are borrowing today will create a hole that size in your next paycheck, so Brown suggests anticipating the gap before borrowing.
"Make sure you're getting the exact amount you require and that you have the method by which you're going to pay this for," she says.
Build savings over time
Savings is the most secure method to cover emergencies and discretionary expenses. Mock suggests having three to six months of expenses saved, but having even a few hundred dollars in savings will help cover most unexpected expenses.
If you need help building your savings each monthly, 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.
List your expenses to come -- like Halloween costumes and holiday gifts and set aside money for them prior to the date, Brown says. This way you can have savings saved for any unexpected costs or gaps in income.
"Life always is going to have ups and downs and the trick is knowing how to manage," she says. "That helps to turn the situation that could become a disaster into a minor inconvenience."
The piece originated from NerdWallet and was originally printed in The Associated Press.


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







On a similar note...








Explore even more deeply in Personal Loans






Get more smart money moves - straight to your inbox
Sign up and we'll send you Nerdy articles about the money topics that are important to you along with other ways to help you make more value from your money.

In case you loved this post in addition to you desire to get details regarding $255 payday loans online california (usabankre.site) kindly visit our webpage.