What if You Don’t Qualify for a Loan?
A payday loan generally describes a short-term, high-cost loan that’s designed to be repaid on your next payday. The terms and structure can vary by state, lender and the individual loan. But payday loans can come with unique risks and are even illegal in some states. So if you’re considering a payday loan, make sure you fully understand the terms and risks.
Cash Advances
Some credit cards let you borrow a portion of your credit limit in cash. This is known as a cash advance and is another kind of short-term, high-cost loan. Using your credit card to get cash from an ATM is expensive, and cash advances might have additional fees, too. Plus, interest rates on cash advances are typically higher than interest rates on regular credit card purchases.
Debt Consolidation Loans
If you’re struggling to stay on top of all your bills, you might decide to combine-or consolidate-all your debt into one loan payment so you can focus on paying a single bill.
According to the FTC, some debt consolidation loans might require you to put up property as collateral. And the CFPB reminds consumers that debt consolidation loans don’t erase your debt. In some cases, you could end up paying more by consolidating debt into a different kind of loan.
- Evaluate bills and take steps to reduce expenses. If you can’t make payments on your bills, credit cards or other loans, the CFPB recommends working with companies and lenders directly. And if you’re a Capital One® customer, you can reach out directly to talk about available resources. You might also want to consider cutting nonessential expenses. Continue Reading
