Get Educated

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Have you ever heard of salary loans? Salary loans are similar to payday loans except the fees are much lower and they are done at your local bank. You usually can only borrow up to $500, although there are some cases where you may be able to borrow more. Here are some advantages to taking out these kinds of loans.

  • Lower interest rates – The interest rates on these loans are much more manageable than pay day loans.
  • Lending standards – Lending standards are making it easier to borrow money even if you have poor credit or no credit at all.
  • Build credit – If done correctly, you may be able to build your credit score with these loans.  

Word of caution…only take out these loans for emergencies. The payments are due right away meaning there is a possibility that you’ll run short on cash until your next paycheck.


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If you need to borrow money fast, you may be tempted to take out a payday loan. But before you take out a payday loan there is another option you should be aware of called salary loans. Salary loans are a rather new product that can be taken out at either your bank or credit union. Not all financial institutions offer it, but if they do you’ll at least have to have direct deposit in order to get approved.

So, what is the biggest difference between the two products? Salary loans aren’t cheap, but the fees are much lower than payday loan fees. It’s also less risky for the bank because they can easily collect fees from you through direct deposit.

These loans have to be paid off more quickly, which can be a financial burden. The good news is, you may be able to negotiate installment payments that will allow you to still get by until your next paycheck.


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If you need to borrow some quick money fast, you may be tempted to take out a payday loan or installment loan. But, there is another option out there that you can try that is rather new. It’s called salary advance loan. This is an alternative offered by many banks and credit unions.

Salary loans are small and short term. The most you may be able to borrow is $500. The first step to qualifying is having direct deposit set up at your bank. This ensures easy collection of funds. Here are some of the terms and conditions:

  • You may have to pay back by your next paycheck.
  • If you can’t pay back in that amount of time, you need to break payments into smaller regular chunks.
  • Regardless of which option you go for, you have to have it paid back within ninety days.

Consider trying your local bank or credit union to see if they offer a product like this. It may be a much better option than pay day loans.


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If you had to choose between the two lesser evils: payday loans or installment loans, installment loans may be a better option. But when you need to borrow money, you will find the best deals on interest rates and fees elsewhere. Here are three better options to try.

  • Your local bank: Banks will charge a much more fair interest rate and keep the fees reasonable.
  • Credit card: A credit card is often a better option than using one of the installment type loans. Just like with local banks, your interest rates are much more reasonable.
  • Salary advance loan: Some local banks may offer this option. Ask your bank for more details.

These options may be tough if you have poor credit, but they are better than companies that offer installment loans and payday loans.


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Maybe you know the dangers of payday loans and have decided to stay away from them. Maybe you were denied a payday loan and are looking for other alternatives. Whatever the reason is you’re not getting a payday loan, consider it to be for your ultimate benefit.

It’s important however, to be cautious of another option on the table called installment loans. One of the dangers of these types of loans is that they can create a vicious cycle of debt. One loan leads to taking out another one. Before you know it, you’re unable to pay for basic necessities. Here are two reasons why installment loans are so costly:

  • Interest rates: The interest rates are expensive. More expensive than credit cards.
  • Origination fees: These fees are usually much higher than traditional loans.

When you end up paying a lot of money to borrow money, you have less to spend on the things you need in the future.


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Loan stores are a particular kind of store set up for people who are vulnerable and tight on cash. Essentially, they lend people the money they need when they feel they have no other place to turn.

Never heard of them? They can be found in places such as strip malls or downtown lots. They are usually located in neighborhoods where the income level is low.

These stores offer a variety loans including title loans, payday loans, installment loans and check-cashing services. Don’t expect to borrow a whole lot. You can borrow anywhere between $100.00 and $500.00, which isn’t a whole lot of money.

Most of these companies make their money off of the origination fees and interest rates charged to customers. Before checking out one of these locations, please be aware they are expensive and their rates normally cost more than using a credit card.


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If you’re in need of a small loan, you may be wondering if you should try your luck with a personal loan or go for a payday loan. Often times, payday loans are appealing because they’re easy to apply for and can be done online from the comfort of your own home if you want. Plus, the approval process is quick, so you’ll usually see cash in your account within 24 hours. Depending on your income, you can get anywhere between $200 and $1000. But…the interest rates are astronomical and the payback periods are strict. You may find yourself having to take out another loan just to cover the fees.

Personal loan lenders usually aren’t excited about approving small loans. Plus, the process isn’t as quick as a payday loan. You may have to wait three and four days before hearing an answer. Also, your credit score has to be more impressive in order to get a personal loan. When you’re in need of quick cash, you may feel pushed to make hasty decisions. Be sure to take the time and weigh your options wisely.


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If you need to borrow less than $500 and are wondering whether you should apply for a payday loan or just pawn one of your valuables, you have to weigh your options. Pawn shops aren’t going to give you very much for your valuable items because they have to  make a profit. That means if you need $500 or less, you’ll need an item that’s at least $1200-$1500. In addition, you have to pay back interest fees and more. Also, the loan lasts anywhere from 30 to 90 days.

Payday loans carry extremely high interest rates. You may be in debt anywhere from 6 months to a year, so keep that in mind as well. If you’re unable to pay, they may take legal action against you by garnishing your check. Neither one is an ideal option, but it’s important that you’re aware of what you’re getting yourself into.


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In part 1 and part 2 of Common Credit Card Questions People Wonder About, we covered various topics ranging from cosigning and interest fees to annual fees and debt elimination. In the final installment, we’re going to cover three more issues people wonder about.

Is it a good idea to carry a balance?  You should never pay a credit card interest rate if you don’t have to. Your credit score will be just as strong without a balance on your card as it would be with one.

Should I try to get another credit card after ruining my credit? Before going out to get another credit card, make sure you can really handle it.

Does FICO determine what a good or bad score is? FICO doesn’t mention what constitutes a good or bad credit score. They only calculate it. Lenders have set the mark for that.

By knowing the answers to these questions, you’ll be a much more informed credit card owner.


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The internet is full of information about credit cards, yet people still wonder what the best choice is for them. In Part 1 of Common Credit Card Questions People Wonder About, we went over whether card holders should close out accounts or ditch cards with annual fees.

In part 2, we’ll cover more questions people wonder about.  

Is it a good idea to cosign for family members? Family is awesome, but if you want to keep the relationship that way, you should probably never cosign on a card for them. If they default, you’re on the hook.

Should cards with higher interest and balances be paid off first?  It is probably a good idea to do so because this will free up more money in your budget.

How often is too often to check a credit score?  You should check your score as often as you’d like. This is the best way to stay on top of what’s going on.

In part 3, we’ll cover more Common Credit Card Questions People Wonder About.