A payday loan can be the fastest route to cash, but it is rarely the cheapest. Before you borrow, run through these nine alternatives. Even one phone call can save you more than the fee on a typical payday loan.
1. Credit Union Payday Alternative Loan (PAL)
Federal credit unions can offer PALs with an APR capped at 28% and an application fee of no more than $20. A PAL I is $200 to $1,000 over one to six months, and a PAL II is up to $2,000 over one to 12 months.
2. Ask the Biller for More Time
Utilities, landlords, clinics and lenders often agree to a payment plan or a later due date if you ask before you miss the payment.
3. Employer Paycheck Advance
Some employers advance part of a paycheck at little or no cost. Ask HR.
4. Small Personal Loan from a Bank or Credit Union
Longer terms and lower APRs than payday borrowing, especially with decent credit.
5. Credit Card Cash Advance
Expensive, with a 3% to 5% fee and immediate interest, but usually still cheaper than a payday loan.
6. Borrow from Family or Friends
Agree on the amount and date in writing to protect the relationship.
7. Sell or Return Something
Unused electronics, furniture or tools can raise cash without debt.
8. Local Assistance Programs
Call 211 for help with rent, utilities and food. Charities and community groups often cover emergencies.
9. Nonprofit Credit Counseling
Agencies in the NFCC network at nfcc.org offer free or low-cost budgeting and debt help.
When a Payday Loan Is Still the Option
If you have tried the above and need money for a single urgent expense, a payday loan may be a last resort. Read our guide to payday loans online and borrow only what you can repay on your due date.
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Use the secure form below. If approved, you see the fee, due date and APR before you accept. Approval is never guaranteed.
Cred Qualify does not guarantee approval. Loan availability, amounts, fees and terms vary by state. Payday loans are meant for short-term needs and are not a long-term financial solution.