What to Do When You Don’t Want to Use Alternative Financial Service Providers

If you decide you don’t want to choose an alternative financial service provider, explore some of the options:

You may qualify for services at banks and credit unions:

Check your record on Chex Systems to see if you have a negative record in your banking history. If not, you may be able to qualify for a credit card, personal loan, or other product that could help. If you do have a negative banking history, take steps to dispute any errors or pay off debts.
Looks for banks or credit unions in your area that offer "second chance" accounts to re-establish your banking relationship.
If you have a banking relationship, ask your bank or credit union if they will make you a small personal loan. These are often credit building loans.

You may be able to borrow money from less expensive sources:

You can save money when filing your taxes:

Use electronic tax filing and set up direct deposit in order to receive your tax refund in a shorter period of time.
Find a free tax return preparation program to do your taxes for free.

With a little planning, you can make large purchases:

Seek out a store that offers a layaway plan and make small payments over a period of time instead of using rent-to-own.
Set up an automatic transfer from your checking account to a savings account in order to build the savings needed for large purchases.

You can build savings and become your own lender:

Set up an emergency fund. You can use a jar in your home, a reloadable prepaid debit card, or an account at a bank or credit union. Your money is safest in a bank or credit union.
With direct deposit of your paycheck and automatic transfer to a savings account, you can build emergency savings. If you save only $10 per week or $20 per paycheck, you will have $500 in your emergency fund in a year. This is more than the average payday loan.

You can increase the resources you have to work with each month:

Seek out local government or nearby social service agencies to see if they provide assistance with food or utility payments.
Find a part-time job to supplement your income.

However, if you do find yourself in a debt trap:

Contact the place that you owe money and work out an alternative payment plan that lets you make realistic payments spread over time.
Contact legal aid in your community to see if they can provide specific legal help.