Payday loans is a costly option for people who urgently need to borrow money to cover some temporary expenses. Usually, payday loans are applied by people with bad credit and cannot go to a regular lender to obtain a loan. If you have bad credit, you should try building up your credit until you have good credit. There are better alternatives that offer low APR interest rates when your credit report shows that you have good credit score. The following are the 3 alternatives to high cost pay day loans for people with good credit score.

1. Online Personal Loans
If you have good credit, you may be eligible to apply for an online personal loan with low interest rate. Apart from your credit score, there are many things the lender will want to see before assigning you a low interest rate including steady employment and low debt to income ratio. You can borrow $1,000 – $35,000 or more from a reputable online lender. They are fast in reviewing and approving your applications. Sometimes, an online lender can approve your loan in the same business day. Unlike a bank, you can expect to receive the money fast in your account in 1- 3 days. You can take anywhere from 3 – 7 years to pay back a loan that you apply from an online lender.

2. Peer-to-Peer Loans
There is a type of loan called P2P loans that is different than the online personal loan. This type of loan is issued by individual lender or more than one individual lenders rather than an online personal loan company. With P2P loans, you can borrow a small amount of lesser than $100 up to tens of thousands of dollars to meet your temporary financial needs. You can also get low APR from 6% when you apply a loan from peer to peer lenders. You can get approved if it is funded by at least 75%. Usually, the it will take up to 2 weeks to release the funds from the p2p loan. Just like the P2P loan, you have to repay the loan in 3 – 7 years. Various types of fees like origination fees, and administration fee apply.

3. Credit Cards
Another alternative is to get a credit card. With a good credit score, you can apply for zero percent rewards credit card with a long intro promo that last for more than 1 year. Currently, the card with the longest zero percent intro promo is Citi Diamond Preferred with 21 months intro promo. There are other cards with 18 months intro promo like Citi Simplicity, Citi Double Cash, and Discover it 18 Months Balance Transfer Offer. You don’t have to pay any interest fee during the zero percent intro promo.