Best Cash Advance Alternatives for Bad Credit of October 2024
Are you considering a cash advance on your credit card? It’s not the best option … Cash advances have high APRs and come with high upfront fees. To administer a cash advance, your credit card issuer will charge you an upfront fee that ranges from $5 to $10 or 3% to 5% of the amount withdrawn. For example, if you take out a $500 cash advance on your credit card, you’re looking at $15 to $25 in upfront fees. The APRs average around 24%, but some credit cards can have cash advance APRs upwards of 34.99%.
ElitePersonalFinance recommends cash advances as a last resort. If it’s an emergency and you need quick funds, a cash advance may be right for you. Just make sure you can pay off the balance in a short period of time.
If you have good credit, we recommend you stick to a personal loan. With plenty of reliable options and affordable APRs, check out our list of the best personal loans in 2022. Watch our video that shows how people with bad credit can get a personal loan:
Now, if you have bad credit, don’t get too discouraged. There are cheaper alternatives out there, and we’re here to help you find them.
Should I Consider a Bad Credit Personal Loan or an Alternative Loan?
Before settling for a cash advance, you should apply for an unsecured personal loan or an alternative loan. These days many lenders offer loans for people with bad credit. Bad credit personal loans have APRs that range from 5.99% to 35.99%, while alternative loans have APRs that range from 35.99% to 400%. Bad credit personal loans often allow you to borrow between $1,000 and $100,000, while alternative loans typically range from less than $1,000 to upwards of $5,000. The main purpose of alternative loans is to help borrowers with extremely bad credit. They’re designed for those who don’t qualify for a personal loan but want to avoid a credit card cash advance’s pitfalls.
BadCreditLoans
BadCreditLoans.com offer unsecured personal loans to borrowers with extremely bad credit. And like their motto states – they help when others can’t. While the company offers loans up to $10,000, those with really bad credit shouldn’t expect that much. Usually, the lender will provide up to $3,000 if your credit is extremely poor, while those with higher credit scores can qualify for the full $10,000.
APRs range from 15% to 35.99% for those with extremely bad credit, but approval is usually fast and easy. Also, loans are unsecured, so you never have to worry about losing any collateral.
PersonalLoans
PersonalLoans.com offers bad credit personal loans ranging from $1,000 to $35,000 with APRs that range from 5.99% to 35.99%. As well, the loan duration range from 90 days to 72 months.
To qualify for a personal loan, you need to have some form of recurring income: full-time employment, self-employment, regular disability, or Social Security benefits. Most applications are processed quickly and easily. However, loan origination fees will apply in most cases.
OppLoans
OppLoans.com is one of the most popular alternative loan companies and one we highly recommend. Loan amounts range from $500 to $4,000, and APRs range from 59% to 160%. Loan duration range from 1 to 18 months, and OppLoans charges zero prepayment penalties.
As an added benefit, OppLoans offers refinancing options to select borrowers. While eligibility is left to its discretion, you will see a ‘Refinance Now’ option in your customer portal if you qualify. You can request additional funds or reduce your monthly payments through the link.
OppLoans offers installment loans in Alabama, California, Delaware, Georgia, Idaho, Illinois, Mississippi, Missouri, Nevada, New Mexico, South Carolina, Texas, Utah, and Wisconsin. However, the company also offers loans through FinWise Bank – an entity OppLoans contracts to handle certain loan products. These loans are available to borrowers in Alaska, Arizona, California, District of Columbia, Florida, Hawaii, Indiana, Kentucky, Louisiana, Maine, Michigan, Minnesota, Montana, Nebraska, North Dakota, Ohio, Oklahoma, Oregon, Rhode Island, South Dakota, Washington, and Wyoming.
Last is its line of credit. This option is only available to Kansas, Tennessee, and Virginia residents.
LendingTree
As another great source to find unsecured personal loans, LendingTree.com offers solutions to borrowers with credit scores as low as 500. Its APRs range from 3.99% to 35.99%, and you can qualify for loan amounts up to $50,000.
Citing recent examples, borrowers with credit scores greater than 700 received loan APRs that topped out at 11.95% – with the majority of loan APRs ranging from 3.99% to 5.74%. However – if you have bad to fair credit – the amount you receive will be much lower, and your APR will most likely fall near the 35.99% mark.
Is it Ever a Good Idea to Get a Credit Card Cash Advance?
You should only use a credit card cash advance as a last resort. It’s an expensive form of borrowing, so we don’t recommend it as a primary option. However, if you have extremely bad credit and are can’t qualify for one of the options above, a cash advance may be right for you. As well, if it’s an emergency and you need quick cash, it’s good to know a credit card cash advance is a possibility. But remember, before taking the plunge, make sure you can repay the proceeds in a short period of time. If not, interest charges will quickly add up.
Why Should I Avoid a Credit Card Cash Advance?
As we mentioned above, you should only use a credit card cash advance as a last resort. Another reason for this is that when you make the minimum payment on a cash advance balance, the proceeds are first credited to your purchase balance instead of reducing your principal. Because of this, your cash advance balance remains high, and you incur more interest charges at a higher rate.
But, we understand, life goes. And sometimes, emergency funds are needed.
So, if you find yourself stuck and a cash advance is your only resource, we consolidated some of the best options to help you along the way. But keep in mind, while all of the credit cards in the table below have zero upfront fees, only one is available to borrowers with less than excellent credit. This is the DCU Visa Platinum Secured Card. It’s available to borrowers with bad credit, but it’s secured, so it requires a minimum collateral balance of $500. All of the credit cards in the table below are issued by credit unions.
| Credit Card: | Annual Fee: | Purchase APR: | APR and Upfront Fees: |
| PenFed Platinum Rewards Visa Signature Card | $0 | 11.99% to 17.99% | 11.99% to 17.99% with no upfront fees. |
| PenFed Promise Visa Card | $0 | 11.99% to 17.99% | 11.99% to 17.99% with no upfront fees. |
| DCU Visa Platinum Rewards Card | $0 | 13.50% to 18.00% | 13.50% to 18.00% with no upfront fees |
| DCU Visa Platinum Secured Card | $0 | 13.75% | 13.75% with no upfront fee |