Credit Unions: A Great Payday Loan Alternative
Posted: May 6, 2021 in Credit
Alternatives To Payday Cash Advance Loans
Local credit unions have been leading the charge to provide consumers with cost-efficient options for short-term cash flow management and long-term solutions as well. The options vary from institution to institution, but there are a few common products that work well.
Personal Loans
ProFed has been more innovative in finding ways to make these services affordable for their members. On example is unsecured personal loans. Unsecured loans based on your credit history are commonly offered to credit union members as a means of consolidating credit debt or handling short-term expenses like medical bills.
Secured Loans
For larger expenses, including major car repairs like a transmission rebuild, refinancing your assets can provide access to the equity in them at even better rates than the unsecured loan options. In some cases, you could even consider refinancing your home or opening a home equity credit line of credit to get working capital for a big project.
Lines of Credit
With a line of credit, you can access funds by withdrawing cash or transferring it to your checking account at any time. Typically, the interest rate is lower than credit cards but higher than term loans. The biggest benefit is that once they are established, credit lines are reusable. Just pay down the balance and it will be available again the next time you need cash. Lines of Credit are great for managing short-term expenses without paying extra fees.
Avoiding Debt Collection Scammers
The best way to be sure you can ignore scammers posing as cash advance providers is to work with NCUA insured and accredited institutions, like ProFed, when you need to borrow money. When you work with ProFed, in your community, it's even easier to borrow with peace of mind, because the institution is well-known and has been serving members since 1933.
Discover ProFed lending options that are great alternatives to payday loans.
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