Payday loans seem a lucrative option when you are cash-strapped. All you need to do is just call a lender, fill out a form, and the cash is transferred to your account. On the payday, you will repay the loan. It seems like a white and fluffy process, but surveys have shown that payday loans are predatory in nature. The average payday loan charges an APR of nearly 400%. Not just the insane interest rates, rollovers are more dangerous with high processing fees, often ending up the borrower in a debt trap.

But, you do not at all have to fall into that debt trap. There are numerous payday loan alternatives (PALs) that at max charge your 32% APR and offer you instant short-term loans.

We have shortlisted the five best payday loan alternatives; out of them, we offer one, a short-term personal loan, that too without credit check at 30% APR. You can learn about that from our PrestoCash team.

Here are the three best payday loan attentive in Canada:

1. Credit Union

Borrowing from the credit union is considered the best PAL. The very reason federal credit unions came into existence is to help the people who need funds for the short term to meet working capital needs. Nowadays, many community-based credit unions have also come into existence.

If you are a member of your credit union, you can get a loan from your credit union at lucrative annual interest rates of 24% to 28%. You can repay the debt in monthly installments. It is just you have to meet certain conditions to become a member of a credit union and borrow money.

2. Short Term Personal Loan

The second-best option is short-term personal loans from independent lenders. Here, we are not talking about the personal loans from banks and traditional financial institutions that take a very long to process, require credit checks and have a long fixed repayment schedule. We are referring to the independent lenders that offer flexible short-term loans with no credit check to meet your working capital needs that you can repay in an easy monthly installment schedule.

If you are earning a steady monthly income, you get approval for the loan on the same day of application, and funds are transferred directly into your account within a few hours after approval. You can apply for a short-term loan at a maximum of 32% APR with us.

3. Cash Advance

A cash advance on a credit card is a fairly good option. Not all will agree to it, considering bank overdrafts are there, but the convenience and ease of approval make cash advance a better option than a bank overdraft. Also, not everyone is eligible for a bank overdraft facility in which your bank allows you to withdraw money to a certain limit for a short term. On the other hand, anyone with a credit card can get a cash advance. It’s just you should repay the borrowed money as soon as you could to avert the high-interest charges.

What option do you find the most practical considering the ease of approval, bad credit score, interest rates and repayment schedule?