Cheap Payday Loans Alternatives for Bad Credit of February 2024

Last Update: March 12, 2023 Loan Reviews Loans

Have you been searching for cheap payday loans? If so, don’t waste your time! We’ve done the research, and the truth is – they don’t exist.

After analyzing hundreds of lending products, we know that payday loans are the most expensive. According to the Consumer Financial Protection Bureau (CFPB), the average APR for a payday loan is 400%. With interest rates this high, you end up paying $45 in interest for every $300 you borrow – and that’s just over a two-week span.

Not very cheap, huh?

Moreover, if you find yourself in the unenviable position of defaulting on the loan, you can rollover the proceeds and extend the due date. However, you’ll be charged a late payment penalty. Say your $300 payday loan extends another two weeks. In this case, you’ll be charged a rollover fee of $45, plus another $45 fee at the end of the two-week extension period. This works out to $90 in extra fees on top of the $45 in interest.

So with all of this information at hand, what are your alternatives?

Well, that’s why we created this guide. This article will explain how you can obtain the cheapest loans, even if you have bad credit.

If you have fair or good credit, qualifying for a personal loan with cheap APRs ranging from 5.99% to 35.99% wouldn’t be very difficult. But, if you have bad credit, your options are usually limited. However, before you get too discouraged, there are viable lending solutions out there, and we’re here to help you find them.

Watch our video that shows how people with bad credit can get a personal loan:

Best Cheap Payday Loans Alternatives for Bad Credit of February 2024

Most borrowers with bad credit don’t realize they can qualify for an unsecured loan. Today, the lending market is much more flexible than in years before, and lenders are more willing to provide cheap loans to borrowers of all credit scores.

See, it all comes down to competition. The lending market is an extremely competitive space. With plenty of companies fighting for your business, many lenders are willing to offer unsecured financing options as a way to increase profitability.

A second reason is the modernization of credit analysis. Instead of focusing on your credit score alone, lenders now take a holistic approach and examine your entire financial situation. Variables like your work history, education, spending activity, and savings balance can all be used to overcome a bad credit score.

Before we get to our top recommendations, you may be confused by the term ‘unsecured.’ Analogous to a standard personal loan, unsecured means you are not required to put up any collateral. As well, unsecured loans have APRs that range from 5.99% to 35.99%, but if you have bad credit, your APR will most likely fall near the top-end of the range. However, compared to a payday loan APR of 400%, 35.99% is still a much better alternative.

Top Recommendations

BadCreditLoans offers cheap personal loans to borrowers with extremely bad credit. And like their motto states – they can help when others can’t.

Loan amounts can extend up to $10,000, and APRs top out at 35.99%. will usually offer up to $3,000 if your credit is extremely poor, while those with higher credit scores can qualify for the full $10,000. So if you’re in the market for a cheap payday loan, consider BadCreditLoans instead.

LendingTree provides cheap installment loans to borrowers with credit scores as low as 500. Loan amounts top-out at $50,000, and APRs range from 3.99% to 35.99%. If you have really bad credit, the amount you qualify for will be much lower, and your APR will most likely fall near the 35.99% mark. However, LendingTree is still a much better option than the cheapest payday loan. Considering that loans are unsecured, you never have to worry about losing any collateral.


As another reliable lender, offers unsecured loans ranging from $1,000 to $35,000. APRs range from 5.99% to 35.99%, making them a great option for cheap bad credit loans. To qualify, you need to have some form of recurring income: full-time employment, self-employment, regular disability, or Social Security benefits. So if you’re looking for a cheap payday loan, check out PersonalLoans instead.

Secured Personal Loans for Bad Credit

Well, with secured loans, your car, home, or any other valuable asset acts as surety in case you default. If you can’t repay the loan, the lender has the right to seize your collateral and sell it to recover the funds.

While this sounds scary, there are plenty of benefits to securing a loan:</