Stretch Pay Loans – Payday Loan Alternatives
Finding quick financing for unexpected expenses isn't always easy. Most small, short-term loans come with high interest rates and strict payment terms. Stretch pay loans, offered by credit unions and banks, are a great alternative to expensive lenders as they come with lower rates and more flexible payment options. Learn more about stretch pay loans to see if they are a good option for you.
What are Stretch Pay Loans?
Stretch pay loans are known for being an alternative to payday lending. As mentioned above they are provided by some banks and credit unions. They loans generally go up to $1000 and have a repayment period of around 30 days although some lenders go to a year.
Unlike payday loans, the amount a borrower qualifies for may not be entirely based on income. Specific lending terms are set by the bank or credit union. In most cases, a credit check isn't required if the applicant has an existing relationship with the institution.
Features of stretch pay loans
- Instant cash
- Low fees
- Low interest rates
- Used to establish or rebuild credit
- No minimum credit score needed
The Cost of Stretch Pay Loans
Like any loan, borrowers need to pay interest on the cash they are given as part of the loan. These interest rates are much lower than a payday loan. The cost does vary depending on the bank or credit union the borrower is working with and the amount of the loan. Standard interest rates range from 12 to 20 percent. Most also have an establishment fee which can range between $20 and $70 depending on the loan amount and lender. Borrowers need to pay back the interest and full loan amount before they can take out another loan.
Applying for a Stretch Pay Loan
Stretch Pay loans are available at a variety of banks and credit unions. Typically, these short term financing options need to be discussed in person. Visit your local bank or credit union to get more details on the specific program they offer.