Non-traditional lenders, such as Blue Trust Loans, have fewer requirements to meet than a bank or credit union, and the approval rates are higher. Many people who do not qualify for bank loans are able to get a non-traditional loan. Those with no credit history, past credit problems, or high income-to-debt ratios can still get approved within a matter of minutes. That does not mean a loan is guaranteed because there are applicants who are denied, it simply means approval is much easier.
People interested in applying can do so in-person, over the telephone, or online. Applicants must be at least eighteen years of age and have an active bank account where payments can be automatically taken out when scheduled. A guaranteed source of income is another requirement. This is typically a job, but can also be a pension, social security payment, or disability payment that is automatically deposited into that active account. It is important to note that most non-traditional lenders will not approve active military personnel or their family members.
Most lenders offer installment loans as an alternative to payday loans. Payday loans must be paid back in one lump sum which is difficult for people. An installment loan means the person has a term of six months to pay back the loan. Payments are still based on paydays but are spread out into equal amounts. This is easier to budget and helps customers avoid late payment penalties. If a payment will not be available on the date scheduled, call the lender immediately to discuss options.
These loans come at a high price in the form of very high interest rates. Applicants must think twice before taking out a non-traditional loan. This avenue of getting money should only be used as a last resort. Take the time to compare actual interest rates and read the terms and conditions carefully before signing an agreement. Taking out a loan that cannot be paid on time or in full can lead to a vicious cycle of debt. If done responsibly this avenue can help people out of an emergency. It can also lead people further into debt.