Providence, RI Payday Loan Alternative

Both the capital of Rhode Island and its most populated city, Providence is home to almost 180,000 people. Residents can check out gorgeous outdoor areas, including the Waterplace Park, an area with a thriving restaurant scene and designer clothing shops. The many attractions also provide plenty of opportunities to spend money, which means it’s no surprise that the cost of living in Providence comes in 22 percent higher than the national average. In addition to this, Rhode Island citizens are no strangers to credit card debt either, with the average debt per person averaging over $5,000.

Payday Loans in Providence, RI

Money can be tight for the average resident of Providence, especially if they are also managing consumer debt, and this leads many to look at payday loans as an option for fast cash. These loans may be quick and easy to get, but they have serious potential drawbacks. The most significant issue is their short terms. The standard payday loan term is 14 days, or the length of a pay period. If the borrower can’t pay back the entire amount they owe at that point - the loan principal plus any interest and fees - then they may have to extend the loan. Extending payday loans typically results in additional fees and can be the start of a difficult cycle of debt.

Providence Personal Lines of Credit

A payday loan isn’t the only option for residents of Providence who need money. Ladder Credit offers personal lines of credit that may be a more convenient and versatile option for certain borrowers. For borrowers who are interested in getting a line of credit, there are only a few basic requirements.

Providence residents seeking to open a line of credit with Ladder Credit must be US citizens of at least 18 years of age. Borrowers should have steady employment that meets certain duration and income requirements. Considering the average salary in Providence is $55,529, residents may meet the minimum income requirements depending on how much they make. Borrowers also need a checking account that has been open long enough to meet duration requirements. Ladder Credit does not lend to active duty military members, their spouses and/or dependents. Additional requirements and limitations may also apply.

The application process is simple and can be completed online or over the phone. For those who complete the application form online through the Ladder Credit website, a Ladder Credit representative will verify application information over the phone after submission.

Upon approval, borrowers are able to request a withdrawal in any amount up to their full approved credit line from their line of credit account. After requesting a draw, funds are deposited into the borrower’s checking account as soon as the next business day.

The Line of Credit Advantage

Because Ladder Credit provides a revolving line of credit, borrowers can keep borrowing from their funds for longer than they would from a loan, in which a lump sum of money is received upfront. Borrowers who have not withdrawn their entire line of credit limit continue to have access to borrow those remaining funds - and when they pay down their balance, their available credit increases, so they can later withdraw again if needed. Having a revolving line of credit means that they’ll have funds available whenever they need it.

Paying back a payday loan can cause financial stress for some borrowers, since the entire loan amount plus interest and fees are due at the end of the very short loan term. This often large amount of money to be repaid can cause cash flow issues for borrowers who still need to be able to afford their regular cost-of-living expenses. But with a personal line of credit, borrowers have more flexibility with their repayment of borrowed funds. They only need to make a minimum payment on their balance, which is 10 percent of the borrowed funds plus a financing charge. In addition to this, interest on a personal line of credit only accrues from the day funds are withdrawn until they are repaid. If borrowers choose to withdraw less than the total approved line of credit amount or if they repay their borrowed funds quickly, they can minimize the interest charges on their personal line of credit. For example, if a Providence student is in need of a couple hundred dollars right now to pay for her books at Brown University, she could use her Ladder Credit line of credit to borrow that amount and pay it off on a flexible repayment schedule - and still have the rest of her credit line available if needed.

A Financial Boost When You Need It

Because of their short repayment windows, payday loans can disrupt a borrower’s cash flow and end up doing more harm than good. A personal line of credit through Ladder Credit allows borrowers to withdraw only what they need and repay their loans on a more flexible schedule. Apply for a personal line of credit today!

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.

*Not everyone will be approved

The line of credit account is designed as a short-term cash flow solution and not designed as a solution for longer term financial problems. Additional Fees may accrue if the outstanding principal balance is not paid at the end of the cycle. Credit counseling services are available to consumers who are experiencing financial problems.