Payday Loan Alternatives

When you're short on cash, a payday loan may seem like the only option — but there are alternatives. Explore payday loan alternatives like finding additional income and lower-cost loans.

Afford the necessities

If you’re struggling to cover basic expenses, some local government agencies, nonprofits and other organizations may be able to help. Here are some resources to try instead of turning to high-interest loans.

Find extra cash

In need of some quick cash? Consider selling clothes or spare electronics, or explore a new side hustle such as pet or child care. Some cash advance apps can offer one-time help in an emergency. 

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In this video, Finance Nerd Nikita Turk shares tips for finding extra cash in a couple of weeks, a few days or one day.

Low-cost loans

You may not need excellent credit to qualify for a low-cost loan. Explore affordable loans from lenders that don’t weigh your score heavily, such as family loans, “buy now, pay later” loans and payday alternative loans from credit unions.

Small-dollar bank loans

Some banks offer small personal loans to help existing customers experiencing short-term financial difficulties. Though your credit score may be a factor in qualifying for this type of loan, it may not be the most important one.

The Flex Loan from Wells Fargo comes in amounts of $250 or $500, with a flat fee depending on the amount you borrow.
Bank of America offers a short-term loan called Balance Assist, which allows customers to borrow up to $500 for a $5 flat fee.
U.S. Bank’s short-term personal loan, called Simple Loan, charges $6 for every $100 borrowed, up to $1,000.

Bad-credit borrowing options

Some lenders and credit card issuers cater to borrowers with low credit scores. Here are some choices to consider, plus additional information on how to qualify.

Learn about predatory lending

Unscrupulous lenders look to exploit consumers experiencing financial hardships. If you borrow with these lenders, you run the risk of falling into a cycle of high-interest debt. Read up on these lenders to steer clear of as you shop.

Build credit

A low — or no — credit score may seem insurmountable, but combining good financial habits with financial products that offer credit-building assistance can help you qualify for low rates in the future. Building credit is a long-term process, but an unaffordable loan can damage it quickly.

Manage debt

These tips and guides can help get debt woes under control, such as credit counseling or creating a debt management plan. Understand the best options to consolidate your debt and potentially cut mounting interest costs.

Get help with a high-cost loan

If you’re looking for ways to pay off a payday loan — or suspect you're stuck in a predatory loan — consider these resources.