Boise, ID Payday Loan Alternative
Boise is the capital of Idaho and the largest city in the state. While the cost of living is low, the real median household income is $51,925 (2015), putting it below the national average of $55,775. Managing debt can be a concern for Idahoans who live in Boise. Credit card debt is an issue, with the average Idaho citizen having $3,392 in total credit card debt. When credit cards are maxed out and charging emergency expenses is not an option, it’s important to know what lending solutions are available.
Payday Loans in Boise
When people in Boise face immediate and unexpected expenses, they often turn to payday loans. In 2014, Idaho payday lenders approved nearly $170 million in loan funding. On the surface, payday loans look like a helpful option when a financial boost is needed. Loans are funded quickly, often within just hours, and depending on the lender, the borrower may not be required to go through a credit check. But the relaxed lending requirements come at a cost.
The primary risk with payday loans is the short repayment period required. Payday loans are typically required to be repaid in full by the borrower’s next pay date, usually within 2 weeks. Often, the cost of paying off the payday loan limits the borrower’s cash flow which might be needed to cover regular expenditures such as rent, gas, or groceries. In order to cover their costs of living, borrowers may find that they need to extend their payday loan, or open a new one. This cycle of continued borrowing can quickly lead to unmanageable debt.
An Alternative to Payday Loans
When funds are needed quickly because of a sudden expense, such as medical costs or auto repairs, it’s good to know that there are other loan options available.
A personal line of credit has many of the benefits of payday loans, and provides more flexible repayment terms. Ladder Credit provides borrowers with personal lines of credit. Applying for a line of credit can be done online, in as little as two minutes, and the applicant requirements are minimal.
US Citizens over the age of 18 may apply. Ladder Credit requires applicants to be currently employed, meet employment duration requirements and minimum income requirements. Applicants should have a bank account that meets minimum opened duration requirements, and cannot be a debtor in a bankruptcy case or have intention to file for bankruptcy. Ladder Credit does not loan to active military duty members or their spouses. Additional requirements and limitations may apply.
Applicants that meet underwriting requiresments will receive a call from a Ladder Credit representative to verify information over the phone. After approval and account setup, borrowers can request to withdraw any amount up to their credit limit and have it deposited into their personal checking account as soon as the next business day.
Advantages with a Personal Line of Credit
There are benefits to using a personal line of credit that a payday loan cannot compete with.
In addition to providing flexible access to funding, borrowers have more flexibility in how they choose to use their funds. While a borrower may choose to take out their entire credit line, they may instead choose to withdraw less than the full amount, and only have to pay back and pay interest on the amount that is withdrawn. Payday loan borrowers must apply for a new loan if they require additional funding. A personal line of credit is a form of revolving credit, which means that making payments on the amount owed increases the available credit on the line. Lastly, repayment on a line of credit is also much more flexible than a payday loan. Instead of needing to pay a lump sum within two weeks, borrowers only need to make the minimum payment to keep their line of credit open and in good standing.
Apply today for a personal line of credit through Ladder Credit.
The content on this site is for informational purposes only and is not professional financial advice. Ladder Credit does not assume responsibility for advice given. All advice should be weighed against your own abilities and circumstances and applied accordingly. It is up to the reader to determine if advice is safe and suitable for their own situation.