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Can't Qualify for a Personal Loan? Four Options to Try

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Can't Qualify for a Personal Loan? Four Options to Consider
Consider these options to cover the gap in your income or a large expense -- and then prepare to cover the time 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 on personal loans. Before joining NerdWallet in 2019 she worked as news reporter in California and Texas, and as an expert in digital content at USAA. Annie's work has been cited by the and included in The Associated Press, USA Today and MarketWatch. She's also been featured by New York magazine and was featured as a guest on the NerdWallet's "Smart Money" podcast as well as local TV and radio. She's based within Austin, Texas.





3 October 2022


Editor: Kim Lowe Lead Assigning Editor The consumer lending Kim Lowe leads the personal loans editorial team. The editor joined NerdWallet after 15 years of managing the content on MSN.com which included travel, health and food. She started her career as a writer for magazines which covered mortgage, supermarket and restaurant 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.







The majority or all of the products we feature come from our partners, who pay us. This impacts the types of products we review and where and how the product appears on the page. But, it doesn't influence our evaluations. Our opinions are our own. Here is a list of and .



Personal loans provide fast, unsecured cash that can cover everything from repairs to medical emergency situations. Instead of requiring collateral such as cars or houses Many lenders favor applicants with excellent credit ratings and high incomes.
But what if you don't satisfy the lender's criteria? There are many people who have no alternatives to high-interest, predatory lenders. These alternatives can help to fill an income gap, but each comes with advantages and disadvantages.
1. Try non-borrowing options
Try to make the cash by opening up your budget and pulling in an extra amount of cash, suggests Tania Brown who is a certified Atlanta financial planner and financial coach. Examine your budget for expenses that you can reduce, even for a short period, such as meals out or streaming services.
To reduce the cost of your existing bills, ask the billing company, creditors or doctors' offices if they have installment plans that are interest-free She says.
Then, combine your reduced costs with a side gig like renting rides, or selling things that you no longer require, Brown says.
2. A family member can borrow money
If you're comfortable asking a family member for cash, that might be one of your most affordable borrowing options. It's not a requirement for an identity check or credit reports, but it might require some extra planning.
Bring the "game plan" that includes a loan amount as well as an interest rate, and repayment period whenever you discuss the topic to remove the guesswork out of making a decision, Brown says. If you're looking for a modest loan an informal loan document with the loaner could suffice. Larger loans may require a formal contract.
In the ideal scenario, an attorney will prepare a formal loan document that you both have to sign, says Philip Mock, a CFP located in Tulsa, Oklahoma. There is a possibility of having to pay for the time of the attorney.
could have tax consequences, Mock says, so do your research when you're creating an loan agreement. For larger loans or more complex questions you should consult with a tax expert.
3. Divide a large purchase into two
A "buy now or pay after" payment plan can reduce the stress of a major purchase by splitting it into smaller installments. BNPL plans are offered by most major retailers and can help ease the financial burden of a new mattress or computer, for instance.
is an easy, fast solution since there's no credit check or long application process, says Kristian Brennon, an accredited financial counselor who is based within Kansas City, Missouri.
Because BNPL providers automatically debit instalments directly from the account. The agent advises making payment due date reminders and making sure your account will not be overdrawn.
4. Get a cash advance
Cash advance apps such as Earnin and Dave give a quick infusion of around a hundred dollars with no credit check or fees and with lower costs than payday loans. But like payday lenders, they require access to a customer's bank account to withdraw the repayment on their next payday.
Though convenient, is it wise to use them sparingly as they can be tricky to budget for, Brown says. The amount you are borrowing today will leave a hole that size in your next paycheck, which is why she recommends anticipating that gap before borrowing.
"Make sure you're getting the exact amount you need and that you have a plan as to how you'll pay this off," she says.
Make savings over time
Savings is the interest-free method to cover emergencies as well as other discretionary costs. Mock recommends having three to six months of savings However, even having just a few hundred dollars of savings will help cover most unexpected costs.
If you're looking for help in building your savings every monthly, Brennon recommends finding professional assistance through the Association for Financial Counseling and Planning Education. It's offering free counseling services to the public until the middle of December.
Write down your future expenses such as costumes for Halloween and gifts for the holidays and set aside money for them prior to the date, Brown says. So you can have savings reserved for any unexpected costs or gaps in income.
"Life always is going to be full of ups and downs and the key is learning how to handle them," she states. "That assists in turning what would be a crisis into a minor problem."
This post is written by NerdWallet and first published 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.







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