If your credit score is less than exemplary, don’t let that stop you from applying for a personal loan. A personal loan should be your first choice, even if you have bad credit, since applying does not require a commitment and won’t impact your credit score. As a result, you have nothing to lose by being proactive, and submitting multiple applications is the easiest way to obtain the lowest APR.
However, if you’ve already tried this and a poor credit score is holding you back, the next best choice is alternative payday loans. Companies like OppLoans, RiseCredit, NetCredit, FigLoans are new types of lenders that fill the void between personal and payday loans. We analyzed more than 100, and only the best made it on our list. Moreover, we never have and never will recommend payday loans, so feel confident that these are the best products available for borrowers with very low credit scores.
Our study aims to empower you with the knowledge necessary to make the best decisions, and we hope that our honest reviews help in that regard. Here is a quick overview of how to categorize these different loan products:
Alternative payday loans are for borrowers with really bad credit. And these products work for them!
Alternative payday loans have higher APRs than bad credit personal loans and lower APRs than payday loans. For example, personal loans typically range from $1,000 to $100,000, with APRs of 5.99% to 35.99%, while payday loans provide $100 to $1,000, with an average APR of 400%. In the middle, alternative payday loans typically provide $1,000 or less to $5,000 to $10,000, depending on the lender. APRs range from 35.99% to 400%, but 100% is often the most common. Also, these are rough estimates and actual terms vary by lender. However, the information should make it easier to understand how these different business models work.
Alternative payday loans often have better terms and higher loan amounts than payday loans, and most lenders don’t check your credit score.
Finally, don’t assume that you won’t qualify. Many borrowers think their credit score is too low for a personal loan and accept a product with a higher APR. Our marketplace has products for everyone, whether personal loans, alternative payday loans, or refinancing options. Click the “Shop Around” button below to begin your search. Please start with personal loans and only move to alternative payday loans if several lenders deny your applications.
Best Alternative Payday Loans for Bad Credit of April 2024
Our research concluded that the best alternative payday lenders are as follows. We excluded payday loan products, and you can find the best bad credit personal loans in a separate study. In addition, we constantly update our lists, so please visit frequently for the latest terms.
As an excellent resource to obtain bad credit financing, ZippyLoan connects you with the top lenders in the marketplace. You can borrow anywhere from $100 to $15,000 with typical terms of six months to five years. However, like NexyDayPersonalLoan, VivaLoan, and some other lenders on our list, APRs vary and depend on your credit score. But note that ZipplyLoan’s financing example shows APRs of 12% to 35.99%.
Loan networks like ZippyLoan make it easy to find affordable financing with little to no effort on your end. For example, the application process takes approximately five minutes, and you can personalize your results. Then, ZippyLoan shows you a list of lenders that offer the highest chance of approval, and you can decide if one of the options is right for you.
ZippyLoan offers both personal and alternative loans, and like OppLoans, applying won’t impact your credit score. But note that financing is not available in West Virginia, Oregon, New York, or the District of Columbia.
Pros:
Lenders on ZippyLoan’s site offer $100 to $15,000.
Typical APRs range from 12% to 35.99%.
High loan amounts are offered to qualifying borrowers.
ZippyLoan’s network of lenders competes for your business.
You can apply for small loans that cover short-term expenses.
Like OppLoans, there is no minimum credit score requirement.
Checking your rate won’t impact your credit score.
Cons:
Fees vary by lender.
Some products may have APRs that exceed 35.99%.
You can’t apply if you live in West Virginia, Oregon, New York, or the District of Columbia.
The impact of COVID-19:
Although ZippyLoan doesn’t have any specific programs related to the coronavirus pandemic, you can apply for a hardship exemption. To do so, contact a representative at 1-844-379-8621 or send an email to support@zippyloan.com.
LifeLoans
Loan Amount:
$100 – $40,000
APR:
Not Listed
Min. Credit Score:
Not Listed
Approval:
1 – 7 Days
Terms:
Not Listed
Fees:
Loan origination fees vary by lender
Late payment fees vary by lender
Most lenders don’t charge prepayment fees
Qualification Criteria:
Be at least 18 years of age
Have monthly income of at least $1,000
Be employed for at least four weeks
Have a bank account and valid home and work phone numbers
Fill out your information through LifeLoans’ online portal
Average Borrower Profile:
LifeLoans doesn’t disclose average personal loan statistics
Like NextDayPersonalLoan, LifeLoans is a comparison site where third-party companies provide funding of $100 to $40,000, with APRs and minimum credit score requirements that are not listed and vary by lender. Thus, LifeLoans’ alternative products have interest rates typically higher than bad credit personal loans, and we recommend that you only consider options like LifeLoans if multiple personal lenders deny you credit. However, the company’s services should be available in all states. Again, like NextDayPersonalLoan, this is an advantage over lenders like WorldFinance and FigLoans, which operate in less than half of U.S. states. As a result, if regional restrictions prevent you from applying elsewhere, LifeLoans may fit your needs.
For context, our marketplace has plenty of bad credit options available, with APRs capped at 35.99%. Therefore, it’s prudent to start there before you consider an alternative lender. However, if you’re stuck and can’t obtain cheaper financing, we wanted to present the options available to every type of bad credit borrower.
Pros:
LifeLoans provides funding of $100 to $15,000 in most states.
High loan amounts are offered to qualifying borrowers.
LifeLoans’ network of lenders competes for your business.
You can apply for small loans that cover short-term expenses.
Like NextDayPersonalLoan, LifeLoans’ services should be available in all states.
Checking your rate won’t impact your credit score.
Cons:
Fees vary by lender.
APRs are not listed and can be higher than standard personal loans.
You need at least four weeks of employment to qualify.
The impact of COVID-19:
The pandemic didn’t impact LifeLoan’s policies. However, with representatives standing by to provide assistance, you can inquire about loan relief by calling 1-833-321-7764 or by completing the company’s contact form.
VivaLoan
Loan Amount:
$100 – $15,000
APR:
Not Listed
Min. Credit Score:
Not Listed
Approval:
1 – 7 Days
Terms:
1 -5 Years
Fees:
Loan origination fees vary by lender
Late payment fees vary by lender
Most lenders don’t charge prepayment fees
Qualification Criteria:
Be at least 18 years of age
Have recurring employment income or government benefits
Fill out your information through VivaLoan’s online portal
Like Zippyloan, VivaLoan is a comparison site that lets you borrow anywhere from $100 to $15,000. However, while typical terms range from one to five years, the company doesn’t list its APRs or minimum credit score requirement. For context, it’s common for comparison sites not to list their terms and conditions because their network of lenders determines the interest rates offered on the platform. However, since VivaLoan’s website states that $1,000 or fewer loans are often repaid with your next paycheck, some products may be comparable to payday loans. Thus, we consider VivaLoan an alternative lender like OppLoans, NetCredit, and WorldFinance, and you should only use the site after you’ve exhausted all other resources.
But applying won’t impact your credit score, and you can see what lenders are willing to offer without committing . Therefore, applying and gauging what products and rates are available doesn’t hurt. However, like ZippyLoan and OppLoans, you can’t apply if you live in West Virginia, New York, or the District of Columbia
Pros:
Like ZippyLoan, VivaLoan provides funding of $100 to $15,000 in most states.
High loan amounts are offered to qualifying borrowers.
VivaLoan’s network of lenders competes for your business.
You can apply for small loans that cover short-term expenses.
Like OppLoans, checking your rate won’t impact your credit score.
Cons:
Fees vary by lender.
APRs are not listed and can be higher than standard personal loans.
Loans of $1,000 or less will likely incur APRs similar to payday loans.
Like ZippyLoan and OppLoans, VivaLoan doesn’t accept applicants in West Virginia, New York, or the District of Columbia.
The impact of COVID-19:
The pandemic didn’t influence VivaLoan’s policies. However, if you want to inquire about potential hardship policies, you can call the company at 1-844-305-5082 or email support@vivaloan.com to learn more about the options available.
NextDayPersonalLoan
Loan Amount:
$100 – $40,000
APR:
Not Listed
Min. Credit Score:
Not Listed
Approval:
1 – 7 Days
Terms:
Not Listed
Fees:
Loan origination fees vary by lender
Late payment fees vary by lender
Most lenders don’t charge prepayment fees
Qualification Criteria:
Be at least 18 years of age
Have recurring employment income or government benefits
Fill out your information through NextDayPersonalLoan’s online portal
Average Borrower Profile:
NextDayPersonalLoan’s connects borrowers with personalized financial product offers from banks and other lenders
If you have bad, fair, good, or excellent credit, financing options are available
NextDayPersonalLoan also connects you with lenders eager to finance, and you can request loans of $100 to $40,000. However, like ZippyLoan, APRs, terms, and fees vary by lender. As a result, you must apply to see their terms and conditions. However, applying won’t impact your credit score, and you should be able to use NextDayPersonalLoan’s services in all states.
The application process takes two minutes or less, and funding arrives in as little as one business day. However, alternative loans often have higher APRs, and NextDayPersonalLoan’s disclosures state that cash advances are not available in Connecticut, New Hampshire, Washington, or Vermont. But it’s relatively common for alternative lenders like NextDayPersonalLoan, ZippyLoan, and OppLoans to restrict access to certain products in certain states. For substitutes, please see our guide on the best loan apps. We reviewed 17 companies that offer cash advances with little or no fees.
Pros:
NextDayPersonalLoan provides funding of $100 to $40,000.
High loan amounts are offered to qualifying borrowers.
NextDayPersonalLoan’s network of lenders competes for your business.
You can apply for small loans that cover short-term expenses.
Like LifeLoans, you should be able to use NextDayPersonalLoan’s services in all states.
Checking your rate won’t impact your credit score.
Cons:
Like ZippyLoan, fees vary by lender.
You can’t see the APRs without applying, and they are often higher than standard personal loans.
Small-dollar loans will likely incur APRs similar to payday loans.
The impact of COVID-19:
Since NextDayPersonalLoan is a comparison site, it can’t amend loan agreements. As a result, you should contact your lender directly to determine if forbearance or hardship programs are available. In addition, you can also call NextDayPersonalLoan at 1-866-829-4551 for helpful advice.
OppLoans
Loan Amount:
$500 – $4,000
APR:
59% – 160%
Min. Credit Score:
0
Approval:
1 – 7 Days
Terms:
9 – 18 Months
Fees:
Loan origination fee of 0% to 3%
Late payment fee of $15 for every 15 days your loan is past due in some states
Insufficient funds fee of $15 in some states
An administration fee of $75 in some states
There are no prepayment fees
Qualification Criteria:
Be at least 18 years of age
Have recurring employment income or government benefits
Work for your employer for at least three months
Have a traditional bank account with at least 90 days transaction history
Fill out your information through OppLoans’ online portal
OppLoans provides small-dollar financing just like ZippyLoan and NextDayPersonalLoan. However, OppLoans is a direct lender, while ZippyLoan and NextDayPersonalLoan are comparison sites. Therefore, the latter two don’t issue credit themselves. Instead, they connect you with third-party lenders that operate on their networks.
Conversely, OppLoans directly provides $500 to $4,000, with APRs of 59% to 160% and terms of nine to 18 months. Moreover, there is no minimum credit score requirement, and financing is available in most states. For context, you should only consider alternative lenders like OppLoans if you don’t qualify for a bad credit personal loan. However, the loan company is transparent with its terms, fees, and APRs and discloses that its loans are “an expensive form of credit.” Thus, OppLoans is a reliable lender that can help you when other companies won’t.
Since payday loans have an average APR of 400%, alternative lenders like OppLoans, NetCredit, and WorldFinance save you money when emergencies strike. Moreover, OppLoans conducts a soft credit pull, so applying won’t impact your credit score. The lender also reports your payment history to the three major credit bureaus, Equifax, Experian, and TransUnion, so on-time repayment can boost your credit score and help you obtain cheaper rates.
Pros:
OppLoans provides funding of $500 to $4,000.
Typical APRs range from 59% to 160%.
High loan amounts are offered to qualifying borrowers.
OppLoans’ lending partners compete for your business.
You can apply for small loans that cover short-term expenses.
Like ZippyLoan, there is no minimum credit score requirement.
Checking your rate won’t impact your credit score.
Cons:
OppLoans’ origination fee is 0% to 3%.
OppLoans’ late payment fee is $15 for every 15 days your loan is past due in some states
OppLoans’ insufficient funds fee is $15 in some states
OppLoans’ administration fee is $75 in some states
Like ZippyLoan, you can’t apply if you live in West Virginia, New York, or the District of Columbia.
The impact of COVID-19:
Standing by its customers throughout the pandemic, OppLoans offered relief programs to borrowers struggling to make their payments. If you find yourself in a similar situation, you can call OppLoans at 1-800-990-9130 or email the company at payments@opploans.com.
RiseCredit
Loan Amount:
$500 – $5,000
APR:
60% – 295%
Min. Credit Score:
0
Approval:
1 – 7 Days
Terms:
4 – 26 Months
Fees:
There are no loan origination fees
There are no late payment fees
There are no prepayment fees
Qualification Criteria:
Be at least 18 years of age in most states
Have recurring employment income or government benefits
Fill out your information through RiseCredit’s online portal
Average Borrower Profile:
RiseCredit doesn’t disclose average loan statistics
RiseCredit is more like OppLoans than ZippyLoan or NextDayPersonalLoan because it’s a direct lender and not a comparison site. Moreover, while ZippyLoan and NextDayPersonalLoan have borrowing limits of $15,000 and $40,000, respectively, RiseCredit and OppLoans have limits of $5,000 and $4,000, with low-end APRs of 60% and 59%. Therefore, companies like OppLoans and RiseCredit only provide alternative loans, while companies like ZippyLoan and NextDayPersonalLoan help you find personal and alternative loans.
RiseCredit lets you borrow anywhere from $500 to $5,000, and APRs vary depending on your state of residence. For example, in California, APRs are capped at 36%, but loans are only available to previous customers. In Texas, APRs are 99% to 149%, and 60% to 295% in Alabama. Loan duration varies by state, but they typically range from four to 26 months. Also, financing options are only available in 30 states.
What’s excellent about RiseCredit is the company offers a 5-Day Risk-Free Guarantee. So if you change your mind regarding whether you need the loan, you can return the principal within five business days without incurring any interest or fees. And like OppLoans and ZippyLoan, RiseCredit has a minimum credit score requirement of 0.
Pros:
RiseCredit provides funding of $500 to $5,000
Typical APRs range from 60% to 295%.
High loan amounts are offered to qualifying borrowers.
Like OppLoans and ZippyLoan, there is no minimum credit score requirement.
There are no origination or late payment fees.
You can apply for small loans that cover short-term expenses.
RiseCredit has 5-Day Risk-Free Guarantee.
Checking your rate won’t impact your credit score.
Cons:
RiseCredit’s APRs are higher than comparable lenders on our list.
RiseCredit’s APRs can vary widely depending on your state of residence.
Like OppLoans, financing is not available in all states.
The impact of COVID-19:
Extending help to vulnerable borrowers during the pandemic, RiseCredit allows eligible customers to defer their loan payments directly through their account portals. However, if you don’t see the option, you can call RiseCredit at 1-866-580-1226 or send a secure email via the company’s website.
NetCredit
Loan Amount:
$500 – $20,000
APR:
19.9% – 150%
Min. Credit Score:
Not Listed
Approval:
1 – 7 Days
Terms:
6 Months – 5 Years
Fees:
Loan origination fee of up to 5%
Late payment fee of $15 to $25, after a 10 to 15-day grace period, depending on your state
There are no prepayment fees
Qualification Criteria:
Be at least 18 years of age in most states
Have recurring employment income or government benefits
Fill out your information through NetCredit’s online portal
While NetCredit is a direct lender and not a comparison site, its metrics are like ZippyLoan’s. For example, NetCredit typically lets you borrow anywhere from $500 to $20,000, with APRs of 19.90% to 150% and terms of six months to five years. Therefore, both companies’ terms are identical, and like ZippyLoan, NetCredit has a low-end APR that falls in the personal loan range. As a result, with rates as low as 12% and 19.90%, respectively, ZippyLoan and NetCredit are great places to begin your search. Furthermore, NetCredit is like ZippyLoan because applying won’t impact your credit score. Thus, you have nothing to lose by inquiring.
However, the average borrower incurs an APR of 83%. So most end up with a rate near the mid-point of the 19.90% to 150% range. In addition, NetCredit’s loans are only available in 36 states, and late payments will cost you $15 to $25, depending on where you reside. Likewise, loan origination fees vary by state and reach upwards of 5%.
Pros:
NetCredit provides typical funding of $500 to $20,000.
Typical APRs range from 19.90% to 150%.
High loan amounts are offered to qualifying borrowers.
You can apply for small loans that cover short-term expenses.
The average borrower incurs an APR of 83%
Like ZippyLoan, checking your rate won’t impact your credit score.
Cons:
NetCredit’s loan origination fee is up to 5%.
NetCredit’s late payment fee is $15 to $25 after a 10 to 15-day grace period, depending on your state
Like OppLoans, financing is not available in all states.
The impact of COVID-19:
NetCredit’s loan deferral program helped struggling borrowers navigate the uncertainties of the pandemic. If you want to learn more about how NetCredit can help you, its customer support team is accessible at 1-877-392-2014 or at support@netcredit.com.
FigLoans
Loan Amount:
$50 – $1,000
APR:
35.99% – 211%
Min. Credit Score:
0
Approval:
1 – 7 Days
Terms:
1 – 6 Months
Fees:
Debit card processing fee of 3%
There are no loan origination fees
There are no late payment fees
There are no prepayment fees
Qualification Criteria:
Be at least 18 years of age
Have monthly income of at least $1,400
Fill out your information through FigLoans’ online portal
FigLoans lets you borrow anywhere from $50 to $1,000, with ARPs of 35.99% to 211% and terms of one to six months. For context, FigLoans is only available in eight states, and loan amounts and APRs vary. For example, loans in Illinois have APRs of 35.99%, so interest rates are comparable to bad credit personal loans. However, loans there are capped at $100. Moreover, APRs range from 175% to 211% in all other states. In addition, the minimum loan amount is $200 to $300 in most states, and four-month terms are most common. Furthermore, FigLoans has a minimum credit score requirement of 0, making its approval criteria similar to companies like OppLoans, ZippyLoan, and RiseCredit. Thus, it’s a prudent option for borrowers with bad or no credit. If you live in Illinois, California, Missouri, New Mexico, Florida, Texas, Utah, or Ohio, FigLoans may be appropriate for emergency financing.
Conversely, SpotLoans ($800) is the only alternative lender on our list with a lower maximum loan amount than FigLoans. And since financing doesn’t exceed $200 to $300 in most states, both companies are more like payday loan substitutes than alternatives. As a result, if you only need a few hundred dollars, our guide on the best loan apps reviews several companies that help you obtain cheaper small-dollar financing.
Pros:
FigLoans provides funding of $50 to $1,000.
Typical APRs range from 175% to 211% and are cheaper than payday loans.
You can borrow $100 in Illinois at an APR of 35.99%.
You can apply for small loans that cover short-term expenses.
Like ZippyLoan, checking your rate won’t impact your credit score.
Cons:
Like RiseCredit, APRs are higher than standard personal loans.
Loans are capped at $1,000.
Financing is only available in eight states.
The impact of COVID-19:
Allowing customers to reduce and defer their payments throughout the pandemic, FigLoans supported borrowers during the troubling times. To learn more about how the company can help, FigLoans recommends that you email service@figloans.com or text your inquiry to 1-832-803-0990.
WorldFinance
Loan Amount:
$450 – $10,000
APR:
27.5% – 81.29%
Min. Credit Score:
Not Listed
Approval:
1 – 7 Days
Terms:
6 Months – 4 Years
Fees:
Loan origination fee of $25 to $100
Late payment fee of 5% of the amount due, or $5 to $30, depending on your state of residence
Insufficient funds fee of $10 to $50
Qualification Criteria:
Be at least 18 years of age
Have recurring employment income or government benefits
Fill out your information through WorldFinance’s online portal
Average Borrower Profile:
WorldFinance doesn’t disclose average loan statistics
Like OppLoans, NetCredit, and RiseCredit, we classify WorldFinance as an alternative lender because it doesn’t cap its APRs at 35.99%. Typical loans range from $450 to $10,000 with terms of six months to four years. However, while APRs are not directly listed, WorldFinance’s example shows that rates range from 27.50% to 81.29%. As a result, while WorldFinance’s loans are cheaper than payday loans, you should only consider this option if you can’t obtain a bad credit personal loan elsewhere. Also, WorldFinance doesn’t list a minimum credit score requirement, but the company notes that “you don’t need perfect credit to get a loan.” Therefore, WorldFinance’s approval criteria should be like OppLoans and ZippyLoan, and borrowers with bad or no credit should be eligible for financing.
Finally, like many alternative lenders on our list, WorldFinance’s products are not available in all states. While companies like RiseCredit and NetCredit offer services in 30 and 36 states, respectively, WorldFinance only accepts applicants in 16 states. As a result, residents of most U.S. regions are unable to apply.
Pros:
WorldFinance provides funding of $450 to $10,000 in most states.
Typical APRs range from 27.50% to 81.29%.
High loan amounts are offered to qualifying borrowers.
You can apply for small loans that cover short-term expenses.
WorldFinance’s APRs are lower than most alternative lenders on our list.
Like OppLoans, checking your rate won’t impact your credit score.
Cons:
WorldFinance’s loan origination fee is $25 to $100
WorldFinance’s late payment fee is 5% of the amount due, or $5 to $30, depending on your state of residence
WorldFinance’s insufficient funds fee is $10 to $50
You can only obtain a loan in 16 states.
The impact of COVID-19:
While WorldFinance doesn’t list any pandemic policies, assistance is always available. Thus, if you want to learn more about potential relief programs, you can call WorldFinance at 1-888-378-3886 or email customercommunication@worldacceptance.com.
SpotLoan
Loan Amount:
$300 – $800
APR:
99% – 490%
Min. Credit Score:
Not Listed
Approval:
1 – 7 Days
Terms:
3 – 10 Months
Fees:
Not Listed
Qualification Criteria:
Be at least 18 years of age
Have recurring employment income or government benefits
Fill out your information through SpotLoan’s online portal
Average Borrower Profile:
SpotLoan’s doesn’t disclose average loan statistics
Offering small-dollar products of $300 to $800, SpotLoan is like FigLoans due to its low financing limit. However, it’s a reliable option if you have bad credit and need cash quickly. For example, APRs range from 99% to 490%, and you need to be a recurring customer to qualify for the lowest rates. Moreover, if you find yourself in need, terms range from three to 10 months, and like OppLoans, applying won’t hurt your credit score.
However, SpotLoan is an expensive form of borrowing and should only be used when other options aren’t available. Therefore, SpotLoan should be your third or fourth choice, not your first. Also, SpotLoan doesn’t offer financing in West Virginia, Illinois, Arkansas, Connecticut, New York, the District of Columbia, Maryland, Pennsylvania, Minnesota, North Dakota, Vermont, or Virginia.
Furthermore, our guide on the best loan apps can help you obtain cheaper small-dollar financing. Companies like Dave, SoloFunds, and MoneyLion provide cash advances of up to $250 to $500, with little or no fees. As a result, we recommend trying them first if you only need a few hundred dollars.
Pros:
SpotLoan provides funding of $300 to $800.
Terms of three to 10 months are much better than payday loans.
Recurring customers obtain better APRs.
You can apply for small loans that cover short-term expenses.
Like Even Financial, checking your rate won’t impact your credit score.
Cons:
APRs are higher than standard personal loans.
You can’t borrow any more than $800.
New customers will incur APRs closer to payday loans.
Most of SpotLoan’s products are only suitable for emergencies.
Like FigLoans, financing is not available in all states.
The impact of COVID-19:
While SpotLoan doesn’t have any coronavirus-related programs, the company is honest in its disclosures and provides the most relevant details. Moreover, if customers have any questions or need financial assistance, they can call SpotLoan at 1-888-681-6811 or email help@spotloan.com to discuss the available options.
Lendly
Loan Amount:
$1,000 – $2,000
APR:
175% – 225%
Min. Credit Score:
Not Listed
Approval:
1 – 7 Days
Terms:
1 – 2 Years
Fees:
Lendly states “There are no fees other than interest on a Lendly loan.”
Qualification Criteria:
Be at least 18 years of age
Have recurring employment income or government benefits
Fill out your information through Lendly’s online portal
Like FigLoans and SpotLoan, Lendly has a low maximum financing limit. Its bad credit installment loans range from $1,000 to $2,000, with typical APRs of 175% to 225% and standard terms of one to two years. For context, Lendly loans repaid through direct deposit incur the lower rate, while repayments made through other means incur the higher rate. However, the direct deposit option is unavailable in California, Kansas, and Minnesota, so the standard APR is 225%. In addition, the loan company’s disclosures note that “There are no fees other than interest on a Lendly loan.” As a result, you shouldn’t have to worry about any hidden charges or surprises.
Conversely, an APR of 175% to 225% is expensive, and making a habit of borrowing at this rate could impair your finances. Therefore, we recommend that you avoid Lendly unless it’s an emergency. Companies like OppLoans and NetCredit have high-end APRs (160% and 150%) that are less than Lendly’s low-end APR of 175%. Thus, unless state restrictions leave you with no other option, cheaper products are available in the marketplace. Also, Lendly loans are only available in 26 states.
Pros:
Lendly provides funding of $1,000 to $2,000.
Terms of one to two years are much better than payday loans.
You can obtain a lower APR if you opt for a direct deposit.
Lendly doesn’t charge any fees.
Like ZippyLoan, checking your rate won’t impact your credit score.
Cons:
APRs are higher than standard personal loans.
You can’t borrow any more than $2,000.
California, Kansas, and Minnesota residents can’t opt for direct deposit.
Like OppLoans, financing is not available in all states.
The impact of COVID-19:
Like many bad credit lenders on our list, the pandemic didn’t affect Lendly’s policies. However, if you need assistance or want to learn more about potential loan forbearance options, you can call Lendly at 1-844-453-6359 or email theteam@getlendly.com.
SpeedyCash
Loan Amount:
$1,000 – $5,000
APR:
37% – 199%+
Min. Credit Score:
Not Listed
Approval:
1 – 7 Days
Terms:
18 Months – 4 Years
Fees:
Not Listed
Qualification Criteria:
Be at least 18 years of age
Have recurring employment income or government benefits
Fill out your information through SpeedyCash’s online portal
Average Borrower Profile:
SpeedyCash doesn’t disclose average loan statistics
SpeedyCash offers online installment loans that may be suitable if you have bad credit. For example, financing is only available in select states. However, if you live in Missouri, you can borrow $1,000 with an APR of 199% and an 18-month term. Moreover, if you live in California, you can borrow $3,000 to $4,500 with APRs of 37% to 39% and terms of two to four years. However, since SpeedyCash offers several loan products, you must do your homework and understand the differences. For example, the lender provides car title and payday loans, which we don’t recommend, so please avoid these. Therefore, you need to be careful with SpeedyCash.
For your reference, we find that SpeedyCash is a lot like SpotLoan and Lendly. All three have high APRs, and you should only use them for emergencies. However, SpeedyCash’s California products are solid payday loan alternatives due to the decent loan amounts and that APRs are less than 40%. However, the company’s offerings aren’t as generous in other states. As a result, it’s not a one-size-fits-all situation, and for some borrowers in some states, SpeedyCash is a reliable option under the right circumstances.
Pros:
SpeedyCash provides online installment loans with amounts that vary by state.
APRs and terms are appropriate for some borrowers.
California residents can obtain APRs that are similar to personal loans.
Like NextDayPersonalLoan, checking your rate won’t impact your credit score.
Cons:
APRs are higher than standard personal loans.
SpeedyCash issues payday loans, which may make the selection process confusing.
Most of SpeedyCash’s products are only suitable for emergencies.
Like OppLoans, financing is not available in all states.
The impact of COVID-19:
Granting relief to nearly 40,000 borrowers, SpeedyCash waived more than $1.6 million in loan payments incurred by customers struggling during the pandemic. Moreover, the loan company created a dedicated hotline for borrowers enduring financial stress. If you want to learn more about the available options, you can call SpeedyCash at 1-855-825-1051.
CashCentral
Loan Amount:
$500 – $5,000
APR:
172% – 239%
Min. Credit Score:
Not Listed
Approval:
1 – 7 Days
Terms:
6 Months – 2 Years
Fees:
Typical late payment fee of 5% of the amount due.
Qualification Criteria:
Be at least 18 years of age
Have recurring employment income or government benefits
Fill out your information through CashCentral’s online portal
Average Borrower Profile:
CashCentral doesn’t disclose average loan statistics
If you live in states like Alabama or New Mexico, CashCentral provides installment loans of $500 to $5,000, with APRs of 172% to 239% and terms of six months to two years. Also, late payment fees vary by state, and typical charges are 5% of the amount due. However, like SpeedyCash, CashCentral is another lender where you need to be careful. The loan company offers installment and payday loans in select states, and it’s critical to avoid the latter. Moreover, CashCentral is an expensive form of borrowing, and you should only apply if multiple bad credit personal lenders deny you APRs of 15% to 35.99%.
When selecting an alternative payday loan, you should aim for the cheapest product. Even though they’re less expensive than payday loans, alternative products are not long-term solutions and can impair your financial health. Moreover, when late payment fees compound the already high APRs, they can leave you trapped in a cycle of debt. As a result, you should only borrow what you know you can repay, and it’s prudent to select a shorter term to reduce your interest expenses.
Pros:
CashCentral provides online installment loans with amounts that vary by state.
APRs and terms are appropriate for some borrowers.
Products in Alabama and New Mexico are better than payday loans.
Moderately-high loan amounts are offered to qualifying borrowers.
You can apply for small loans that cover short-term expenses.
Like OppLoans, checking your rate won’t impact your credit score.
Cons:
APRs are higher than standard personal loans.
CashCentral typically charges a late payment fee of 5% of the amount due.
CashCentral issues payday loans, which may make the selection process confusing.
Most of CashCentral’s products are only suitable for emergencies.
Like ZippyLoan, financing is not available in all states.
The impact of COVID-19:
While CashCentral doesn’t cite any coronavirus relief programs, customer service representatives are available if you have any questions. For example, you can call CashCentral at 1-800-460-4305 or email customerservice@cashcentral.com to discuss your situation with an agent.
CreditFresh
Loan Amount:
$500 – $5,000
APR:
65% – 200%
Min. Credit Score:
Not Listed
Approval:
1 – 7 Days
Terms:
1 Month
Fees:
There are no loan origination fees
There are no late payment fees
Qualification Criteria:
Be at least 18 years of age
Have recurring employment income or government benefits
Fill out your information through CreditFresh’s online portal
Average Borrower Profile:
CreditFresh doesn’t disclose average loan statistics
CreditFresh is different than most lenders on our list in that it’s not a comparison site, nor does it offer installment loans. Instead, CreditFresh provides lines of credit that range from $500 to $5,000, with typical APRs of 65% to 200%. And like RiseCredit and FigLoans, there are no loan origination fees. In addition, there are no late payment fees, and CreditFresh doesn’t list a minimum credit score requirement. However, since you owe interest monthly on the amount you borrow, there is no fixed term.
The downside is that CreditFresh is a more expensive form of borrowing than using a credit card. With the latter, paying off your balance each month allows you to avoid interest charges. However, with CreditFresh, you incur costs based on your principal balance without a grace period. As a result, CreditFresh is like SpeedyCash, SpotLoan, and Lendly in that their products are great if your only other option is a payday loan. Conversely, if you take the time to be selective, you’ll find that the other lenders on our list offer more affordable loans. Also, CreditFresh’s products are only available in 25 states.
Pros:
CreditFresh provides funding of $500 to $5,000.
CreditFresh’s low-end APR is more affordable than comparable alternative loans.
You won’t incur loan origination or prepayment fees.
Moderately-high loan amounts are offered to qualifying borrowers.
You can apply for small loans that cover short-term expenses.
Like OppLoans, checking your rate won’t impact your credit score.
Cons:
APRs are higher than standard personal loans.
Some of CreditFresh’s products are only suitable for emergencies.
Like ZippyLoan, financing is not available in all states.
The impact of COVID-19:
CreditFresh doesn’t have any pandemic-specific policies. However, if you need to discuss loan relief options, you can call CreditFresh at 1-800-766-2007 or email customerservice@creditfresh.com.
IntegraCredit
Loan Amount:
$500 – $3,000
APR:
149% – 399%
Min. Credit Score:
0
Approval:
1 – 7 Days
Terms:
12 – 18 Months
Fees:
Not Listed
Qualification Criteria:
Be at least 18 years of age
Have recurring employment income or government benefits
Fill out your information through IntegraCredit’s online portal
Average Borrower Profile:
IntegraCredit doesn’t disclose average loan statistics
While the specifics vary by state, IntegraCredit typically lets you borrow $500 to $3,000, with APRs of 149% to 399% and terms of 12 to 18 months. Thus, the high APRs make IntegraCredit like CashCentral, CreditFresh, SpeedyCash, SpotLoan, and Lendly. On the flip side, IntegraCredit has a minimum credit score requirement of 0, and like OppLoans and ZippyLoan, borrowers with very bad or no credit are welcome to apply.
However, since OppLoans has the exact minimum credit score requirement, caps its APRs at 160%, and offers financing in all states except West Virginia, New York, and the District of Columbia, it’s a better option for most borrowers than IntegraCredit. Also, IntegraCredit’s loans are only available in 24 states, and we only recommend the lender if you can’t obtain financing elsewhere. Please consult our marketplace for cheaper options and only use IntegraCredit for emergencies.
Pros:
IntegraCredit provides funding of $500 to $3,000 in most states.
You can apply for small loans that cover short-term expenses.
There is no minimum credit score requirement.
Like OppLoans, checking your rate won’t impact your credit score.
Cons:
APRs are higher than standard personal loans.
IntegraCredit’s products are only suitable for emergencies.
Like SpotLoan, financing is not available in all states.
The impact of COVID-19:
InegraCredit hasn’t announced any changes to its policies due to COVID-19. However, if you have any questions or concerns about your loan, you can call the company at 1-855-345-5550 or email support@integracredit.com.
PersonifyFinancial
Loan Amount:
$500 – $15,000
APR:
19% – 199.99%
Min. Credit Score:
Not Listed
Approval:
1 – 7 Days
Terms:
1 – 4 Years
Fees:
Loan origination fee of typically 5% of the amount borrowed
Late payment fee typically applies
Qualification Criteria:
Be at least 18 years of age
Have recurring employment income or government benefits
Fill out your information through PersonifyFinancial’s online portal
Average Borrower Profile:
PersonifyFinancial doesn’t disclose average loan statistics
Like ZippyLoan and VivaLoan, PersonifyFinancial has a maximum financing limit of $15,000. However, unlike the former, the minimum loan amount is $500 versus $100. In addition, PersonifyFinancial offers APRs of 19% to 199.99% and terms of one to four years. As a result, the lender provides both personal and alternative loans, and like ZippyLoan, products with APRs of 35.99% or less should be your first choice.
Furthermore, PersonifyFinancial’s APRs are lower than companies like IntegraCredit, CashCentral, and CreditFresh, and we consider it a more prudent option. However, financing is only available in 26 states, so accessibility varies depending on your region.
For your reference, PersonifyFinancial doesn’t list a minimum credit score requirement, so borrowers with very bad or no credit should be able to apply. Moreover, loan origination fees are typically 5% of the amount borrowed, and late payment fees often apply.
Pros:
PersonifyFinancial provides funding of $500 to $15,000 in most states.
Some of PersonifyFinancial’s products have APRs similar to personal loans.
High loan amounts are offered to qualifying borrowers.
You can apply for small loans that cover short-term expenses.
Like ZippyLoan, checking your rate won’t impact your credit score.
Cons:
Some of PersonifyFinancial’s products have expensive APRs.
Loan origination and late payment fees often apply.
Like OppLoans, financing is not available in all states.
The impact of COVID-19:
While PersonifyFinancial has a COVID-19 Customer Resource Center with helpful tips on easing borrowers’ financial burden, it doesn’t list any specific company policies. However, if you want to speak with a representative, you can call PersonifyFinancial at 1-888-578-9546 or complete the company’s contact form.
BalanceCredit
Loan Amount:
$100 – $5,000
APR:
99% – 720%
Min. Credit Score:
Not Listed
Approval:
1 – 7 Days
Terms:
4 – 30 Months
Fees:
There are no loan origination fees
There are no late payment fees
Qualification Criteria:
Be at least 18 years of age
Have recurring employment income or government benefits
Fill out your information through BalanceCredit’s online portal
Average Borrower Profile:
BalanceCredit doesn’t disclose average loan statistics
BalanceCredit may be appropriate for some borrowers. For example, you can borrow anywhere from $100 to $5,000, with APRs of 99% to 720% and terms of four to 30 months. Moreover, there are no loan origination or late payment fees, and credit scores as low as 300 can apply. But financing is only available in 25 states.
However, its high-end APRs are extremely expensive, and like CashCentral, CreditFresh, SpeedyCash, SpotLoan, and Lendly, you need to be careful with BalanceCredit. When you take out a loan with a high APR, it can do more harm than good. Most borrowers turn to these products when they suffer financial emergencies. As a result, they serve essential functions. However, the interest expenses are so high that the costs can eventually exceed the principal amount of the loan. Therefore, some products aren’t in your best interest. And with BalanceCredit’s high-end APRs reaching 720%, some of its loans are more expensive than the average payday loan. Thus, you should only consider BalanceCredit if your offer includes an APR near the low-end of the range.
Pros:
BalanceCredit provides funding of $100 to $5,000.
Moderately-high loan amounts are offered to qualifying borrowers.
You can apply for small loans that cover short-term expenses.
There are no loan origination or late payment fees.
You can apply with a credit score of at least 300.
Like Zippyloan, checking your rate won’t impact your credit score.
Cons:
Some of BalanceCredit’s products have APRs that are higher than payday loans.
Most of BalanceCredit’s products are only suitable for emergencies.
Like OppLoans, financing is not available in all states.
The impact of COVID-19:
While BalanceCredit doesn’t list any COVID-19 specifics, you can call the loan company at 1-855-942-2526 or email support@balancecredit.com to determine if any hardship programs are available.
Lendumo
Loan Amount:
Up to $2,500
APR:
Not Listed
Min. Credit Score:
Not Listed
Approval:
1 – 7 Days
Terms:
Not Listed
Fees:
Not Listed
Qualification Criteria:
Be at least 18 years of age
Have recurring employment income or government benefits
Fill out your information through Lendumo’s online portal
Lendumo’s products are most like SpotLoan and FigLoans because its maximum financing limit is relatively small. For example, while the company is a little light on specifics, new borrowers can obtain up to $1,200, and repeat borrowers can obtain up to $2,500. Moreover, while the loan company’s products are appropriate for borrowers with bad or no credit, Lendumo notes it’s an “expensive form of borrowing.” Thus, you should expect APRs of 100% or more. In addition, Lendumo only makes loans in 42 states.
Therefore, while Lendumo offers financing in most U.S. states, its lack of disclosures makes other lenders more attractive. With most companies on our list offering loan amounts of $5,000 or more, Lendumo doesn’t help much if you incur a significant expense. Thus, if a health scare or home improvement project requires a large loan, you may prefer one of the other options on our list.
Pros:
Lendumo provides funding of up to $1,200 or $2,500, depending on your relationship with the company.
Financing is available in 42 states.
Like SpotLoan, checking your rate won’t impact your credit score.
Cons:
Lendumo’s products may have APRs of 100% or more.
Lendumo charges a late payment fee of $30 after a three-day grace period.
Lendumo charges an insufficient funds fee of $30.
Most of Lendumo’s products are only suitable for emergencies.
Financing is not available in some states.
Elastic
Loan Amount:
$500 – $4,500
APR:
137%+
Min. Credit Score:
Not Listed
Approval:
1 – 7 Days
Terms:
Not Listed
Fees:
Cash advance fee of 5% to 10% of the amount borrowed
Statement balance fee of $5 to $350
There are no loan origination fees
There are no prepayment fees
Qualification Criteria:
Be at least 18 years of age
Have recurring employment income or government benefits
Fill out your information through Elastic’s online portal
Elastic’s line of credit provides anywhere from $500 to $4,500, with APRs that typically start at 137% and terms that vary by state. Moreover, Elastic doesn’t have loan origination or late payment fees. However, you may incur a cash advance fee of 5% to 10% of the amount borrowed and a charge of $5 to $350 for statement balances, and Elastic only extends financing in 39 states.
The lack of loan origination fees is a plus like RiseCredit, FigLoans, CreditFresh, and BalanceCredit. To your knowledge, lenders deduct loan origination fees from your principal, so a 3% fee on a $5,000 loan will leave you with $4,850 in net proceeds. However, the interest you pay is based on the $5,000 gross proceeds, so avoiding loan origination fees can save you money.
Conversely, since Elastic’s APRs often start at 137%, incurring a loan origination fee and paying a lower APR is a better combination. As a result, we recommend that you begin by applying for cheaper products and only consider more expensive loans if you don’t qualify.
Pros:
Elastic provides funding of $500 to $4,500.
You can apply for small loans that cover short-term expenses.
You won’t incur loan origination or prepayment fees.
Financing is available in 39 states.
Like OppLoans, checking your rate won’t impact your credit score.
Cons:
APRs typically start at 137%.
Elastic’s cash advance fee is 5% to 10% of the amount borrowed.
Elastic’s statement balance fee is $5 to $350.
Most of Elastic’s products are only suitable for emergencies.
Financing is not available in some states.
The impact of COVID-19:
Elastic helped struggling borrowers during the pandemic. And for anyone experiencing hardship challenges, Elastic recommends that you call the loan company at 1-888-225-0080 or send a secure message using its contact form.
OlympusLending
Loan Amount:
$350 – $2,500
APR:
Not Listed
Min. Credit Score:
Not Listed
Approval:
1 – 7 Days
Terms:
Not Listed
Fees:
Not Listed
Qualification Criteria:
Be at least 18 years of age
Have recurring employment income or government benefits
Fill out your information through OlympusLending’s online portal
Average Borrower Profile:
OlympusLending doesn’t disclose average loan statistics
Like Lendumo, OlympusLending caps its loans at $2,500. Moreover, you can borrow as little as $350. And like many of the alternative lenders on our list, APRs and terms vary by state. Due to the wide range of potential financing charges, it’s essential to review your loan offer before signing. Moreover, if OlympusLending’s APRs exceed the rates of comparable companies on our list, you’re better off considering another product. As a result, please consult our marketplace for the most affordable options.
In addition, even if you don’t qualify for a bad credit personal loan with an APR of 35.99% or less, there are several options available with APRs of 36% to 200%. Specifically, WorldFinance caps its rates at 81.29%, and companies like OppLoans and NetCredit have high-end APRs of 160% and 150%, respectively. Therefore, since payday loans have an average APR of 400%, obtaining a rate of at least half will save you a lot of money. Thus, please take your time before settling for a costly loan, even if it’s an emergency.
Pros:
OlympusLending provides funding of $350 to $2,500.
You can apply for small loans that cover short-term expenses.
Like ZippyLoan, checking your rate won’t impact your credit score.
Cons:
APRs are likely higher than standard personal loans.
You can’t borrow any more than $2,500.
Most of OlympusLending’s products are only suitable for emergencies.
The company may not operate in all states.
The impact of COVID-19:
While OlympusLending doesn’t list any specific COVID-19 policies, the company has customer service representatives who can help with any concerns. To get in touch, you can call OlympusLending at 1-844-332-5497 or email support@olympuslending.com.
Helix by Kendall Bank
Loan Amount:
$200 – $4,000
APR:
199%+
Min. Credit Score:
Not Listed
Approval:
1 – 7 Days
Terms:
Up to 2 Years
Fees:
Not Listed
Qualification Criteria:
Be at least 18 years of age
Have recurring employment income or government benefits
Fill out your information through Helix by Kendall Bank’s online portal
Average Borrower Profile:
Helix by Kendall Bank doesn’t disclose average loan statistics
Helix by Kendall Bank is like OppLoans because you can’t borrow any more than $4,000. However, the two differ in that the former often levies APRs of 199%, and its upper bound of APRs can reach the high triple digits. As a result, you should only use Helix by Kendall Bank as a last resort. Conversely, OppLoans caps its APRs at 160%, so it’s a more affordable option if you live in a serviceable state. Likewise, if you decide to go with Helix by Kendall Bank, please ensure that your APR doesn’t exceed 400%. If not, it’s no better than a payday loan, and we don’t recommend those.
Therefore, our reservations about Helix by Kendall Bank are like CashCentral and IntegaCredit. And if you can avoid applying for these high-interest loans, it’s a prudent decision. However, we still wanted to present a plethora of options so that borrowers know what’s available in the marketplace. Also, Helix by Kendall Bank’s loans are only available in 40 states, and other companies on our list can help you find cheaper financing.
Pros:
Helix provides funding of $200 to $4,000.
You can apply for small loans that cover short-term expenses.
Like OppLoans, checking your rate won’t impact your credit score.
Cons:
APRs are higher than standard personal loans.
Some of Helix’s products have APRs that are comparable to payday loans.
Most of Helix’s products are only suitable for emergencies.
Financing is not available in all states.
The impact of COVID-19:
Helix’s policies didn’t change during the pandemic. However, if you want to inquire about loan assistance, you can call the lender at 1-844-211-2070 or email support@helix.com.
BigPictureLoans
Loan Amount:
$200 – $3,500
APR:
350% – 699%
Min. Credit Score:
Not Listed
Approval:
1 – 7 Days
Terms:
4 – 18 Months
Fees:
Late payment fee of $20 after a 10-day grace period
Qualification Criteria:
Be at least 18 years of age
Have recurring employment income or government benefits
Fill out your information through BigPictureLoans’ online portal
Average Borrower Profile:
BigPictureLoans doesn’t disclose average loan statistics
BigPictureLoans is another ‘last resort’ lender like Helix by Kendall Bank and OlympusLending. Its APRs range from 350% to 699%, so the lowest rate is only slightly cheaper than a payday loan. As a result, please proceed with caution, and we recommend looking elsewhere for a more affordable product. However, you can borrow anywhere from $200 to $3,500 with terms of four to 18 months. Also noteworthy, BigPictureLoans’ services should be available in all states.
However, our marketplace has dozens of lenders that offer very bad credit financing, and there are plenty of alternative lenders with cheaper APRs. Thus, it’s prudent to avoid BigPictureLoans unless it’s an emergency. Sometimes, it’s better to forgo high-interest loans and focus on rebuilding your credit score. That way, you’ll increase your creditworthiness in the eyes of lenders and qualify for cheaper rates in the future. For helpful tips, please consult our guide on how to rebuild your credit.
Pros:
BigPictureLoans provides funding of $200 to $3,500.
You can apply for small loans that cover short-term expenses.
BigPictureLoans’ services should be available in all states.
Like OppLoans, checking your rate won’t impact your credit score.
Cons:
APRs are higher than standard personal and most alternative loans.
Some of BigPictureLoans’ products have APRs that are higher than payday loans.
BigPictureLoans’ products are only suitable for emergencies.
BigPictureLoans charges a late payment fee of $20 after a 10-day grace period.
The impact of COVID-19:
BigPictureLoans didn’t implement any specific coronavirus-related programs. However, if you need assistance or want clarification on hardship policies, you can call BigPictureLoans at 1-800-584-4880 or email Support@BigPictureLoans.com.
Are Alternative Payday Loans Better Than Payday Loans?
Without a doubt, alternative loans are a much better borrowing option than payday loans. When you take out a payday loan, the average APR is 400%. With interest rates this high, you pay $45 in interest for every $300 you borrow – and that’s just over two weeks. Moreover, if you find yourself in the unenviable position of defaulting on the loan, you can roll over the proceeds and extend the due date. However, you’ll incur a late payment penalty.
Say your $300 payday loan is extended another two weeks: you’ll pay a rollover fee of $45, plus another $45 at the end of the two-week extension period. It works out to $90 in extra costs plus the $45 in interest. Expensive, huh? Well, it doesn’t stop there. You also have to consider bank overdraft fees. Banks can charge overdraft fees that increase your out-of-pocket costs. For example, the Consumer Financial Protection Bureau (CFPB) found that 20,000 bank account holders who made payments to online payday lenders incurred an average of $97 in overdraft and non-sufficient funds fees. The figure is nearly three times more than the $34 incurred by the average American.
If you’re still not convinced, check out the testimony critics gave to Congress regarding the harm caused by payday loans. On the other hand, alternative loans are much more flexible. With payday loans, when you fall behind on your payments, the high fees keep you from paying off the principal and can send you spiraling into a vicious debt cycle. But with alternative payday loans, you have the flexibility to delay payment without incurring any penalty fees. For example, RiseCredit offers a seven-day extension period if you run into any payment issues, and NetCredit employs a similar practice as well.
What Are Alternative Payday Loans Like OppLoans, RiseCredit, and NetCredit?
Alternative payday loans are a bridge between personal loans and payday loans; unlike personal loans where APRs max at 35.99%, alternative payday loans’ APRs range from 36% to 400%. However, it’s easier to qualify, and many lenders offer APRs of roughly 100%. Conversely, payday loans have an average APR of 400% and are much more expensive. Alternative payday lenders also let you borrow $1,000 or less to $5,000 to $10,000 (varies by lender), while personal loans typically range from $1,000 to $100,000, and payday loans provide $100 to $1,000.
In addition, alternative lenders often have lower credit score requirements, and some don’t check your credit at all. As a result, the application process is much smoother. However, the downside is that their APRs are still uncomfortably high. And while your interest rate is typically much lower than a payday loan, the charges can add up. Thus, we recommend sticking to personal loans unless it’s an emergency and alternative payday loans are your only option. Our guide on alternative payday loans also has helpful tips.
Pros:
Higher chances of approval.
Lower APRs than payday loans.
Flexible repayment terms.
There are fewer fees than payday loans.
Some lenders don’t conduct credit checks.
Some lenders let you reschedule your payments and waive late fees.
Alternative payday loans can help you rebuild your credit score.
Building a relationship can reduce your APR on future loans.
Cons:
More expensive than personal loans.
Loans often max at $5,000.
A bad credit score may exclude you from high loan amounts.
Alternative payday lenders only operate in select states.
Some states have APR caps that make payday and alternative payday loans illegal. For example, a lender may offer $5,000 in one region but only $1,000 in another. In addition, the lenders’ APRs may max at 37% in one and 150% in another. As a result, state laws determine loan accessibility.
When Should I Get an Alternative Payday Loan from Sites Like OppLoans, RiseCredit, or NetCredit?
As you can see, companies like OppLoans, RiseCredit, and NetCredit offer plenty of benefits that payday loans don’t. And even though they operate a more honorable business model, their products are still costly. Because of this, we don’t recommend alternative lenders as your primary source for a loan.
Remember, we only recommend loan companies like OppLoans to those who don’t qualify for a personal loan because our goal is to help you avoid payday loans at all costs. But, because alternative loan APRs fall right in the middle, they’re a good option for those with extremely bad credit. Moreover, alternative loans are much more flexible than payday loans, and their application process is often fast and easy. Sites like OppLoans place less weight on your credit score when quantifying your creditworthiness and instead look at other variables like your work history, education, spending activity, and savings balance. However, before you take out your next alternative payday loan, we have a few recommendations you should consider. If none of these work for you, then move on to alternative payday loans:
Shop around for a bad credit personal loan. There are plenty of lenders who offer unsecured loans to borrowers with bad credit. You should apply to as many companies as possible; for more help, check our list of the best personal loans for bad credit.
If you’re denied a personal loan, ask the lender why your application was rejected and see if there is another way you can work together.
Ask the lender if lowering the principal will increase your chances of approval.
Next, move on to secured personal loans. Even borrowers with bad credit have a high approval rate and get highly competitive APRs when putting up collateral. But in this case, you have to make sure that you can repay the loan on time because you risk losing your property.
Next, move on to a cosigner loan. It’s a great option if you can find someone willing to act as a guarantor.
Next, move on to improving your credit score; we know it takes time and effort, but lenders will eventually acknowledge your hard work.
Next, look at other options like a cash advance on your paycheck or use cash advance apps that allow you to withdraw the money you’ve earned but have yet to be paid. Also, please look at credit unions; they typically require a one-time fee of $25, but their APRs tend to range from 18% to 28%; moreover, federal credit unions cap their APRs at 18%.
Last, try other ways to make money. You can take paid surveys; many pay between $0.50 to $1.25 per survey and take less than five minutes to complete; it can add up quickly over a few days. You can also pick up part-time work as an Uber driver or deliver food with Uber Eats; both apps allow you to sign in and out and work on your schedule.
One last tip. Don’t get duped by payday lenders that masquerade as alternative lenders. Since the difference between the two products is minimal, payday lenders will trick you into believing their product is better. This guide defines alternative loans roughly, but there isn’t a standardized definition. The key is to analyze the loan terms and how the company operates. By doing so, you’ll be able to tell the difference.
Are Alternative Payday Loans Legit?
For most lenders, the answer is yes. But, it depends solely on whether the company follows state law. See, legitimate alternative lenders adhere to state law and follow local regulations. For example, payday and car title loans are illegal in many states; and states that allow them often cap their fees, APRs, and the maximum amount they can charge a borrower. The regulations keep payday lenders from exploiting unsuspecting borrowers. Unfortunately, companies can often use legal jargon or regulatory loopholes to get around specific legislation. So, before applying for a loan, make sure your lender is licensed and registered in your state. Moreover, avoid lenders that ask for prepaid credit card numbers, companies with poor Better Business Bureau (BBB) ratings, and companies that receive poor customer reviews. For more detail on what to watch out for and how to avoid loan scams, check out where to find legit personal loan companies for bad credit online.
If I Have Bad Credit, Can I Still Get a Personal Loan?
It’s a common misconception that you can’t qualify for a personal loan if you have bad credit. Well, we’re here to tell you: it is possible. The lending market is a highly competitive space, and with plenty of companies fighting for your business, many lenders are willing to offer unsecured loans to borrowers with bad credit. Moreover, with the modernization of credit analysis – instead of focusing solely on your credit score – lenders now take a holistic approach and examine your entire financial situation. As mentioned above, variables like your work history, education, spending activity, and savings balance can help you overcome a bad credit score.
How Do I Increase the Chances of Obtaining a Personal Loan?
Use a cosigner:
A cosigner is a great way to increase your chances of obtaining a personal loan. The guarantor promises to pay back the debt proceeds if you default. And you benefit by receiving a lower APR, and the lender benefits because a cosigner decreases the default risk. So, if you have a trusted friend who’s willing to act as a cosigner, it will give your application a leg-up.
Keep bill payments current:
Considering that 35% of your FICO score is attributed to your payment history, staying up-to-date on your bill payments can help move your credit score in the right direction. According to the Fair Isaac Corporation (FICO), a missed payment of 30-days can result in a 90 to 110 point decrease in your credit score, with another 60 to 80 point drop if the delinquency extends another 30 days.
Keep credit card charges to less than 30% of your total balance:
Accounting for 30% of your FICO Score, responsible credit utilization can positively impact your credit score. Don’t apply for new credit cards that you don’t need and pay off debt rather than just transferring it from one card to another.
Lower your debt-to-income ratio (DTI):
Increasing your income or decreasing your debt will positively affect your credit score. Of course, this problem wouldn’t exist in a perfect world, and we know how difficult it is to apply it in real life. But try your best to develop a debt repayment plan that you can both afford and follow. As well, always pay down debt with the highest interest rate first.
What Else Can I Do?
Change your spending habits:
When analyzing your creditworthiness, there’s a reason lenders look at your credit history and history of financial transactions. They are concerned with how you repay debt, but they also want to assess how you spend your money. If a lender finds plenty of frivolous spending, this can be a red flag regarding your borrowing capacity.
Build a more predictable employment history:
While a full-time job is at the top of many lenders’ checklists, they’re also concerned with your career path. Lenders are attracted to borrowers with predictable earnings. Conversely, if you change jobs frequently – moving from one industry to the next – this can be a red flag regarding your ability to repay the loan. In addition, if you lose your job or receive a significant reduction in hours, lenders believe you may lack the experience or track record to land an identical position.
Increase your level of education:
Education helps measure your earning potential and, more importantly, your ability to repay debt. For instance, many young borrowers – millennials – don’t have an established credit history or a significant asset base that lenders can use to quantify their creditworthiness. Thus, they use your education to extrapolate your employment earnings and create a financial profile. If you show lenders you’re taking classes or working towards certifications to increase your attractiveness in the job market, they will look at your application more favorably.
Why Did We Select These Lenders?
We analyzed more than 100 lenders to determine which products have the best terms and the lowest APRs. Affordability is critical since some lenders disguise their payday loan products as alternative loans. Next, we narrowed our list to the companies that met these criteria and had the most reliable service. As a result, the names on our list offer the best pathway to avoid payday loans.
Conclusion
While alternative lenders may seem scary or unfamiliar, they’re an excellent option for those that don’t qualify for a personal loan. Remember, the goal is to avoid payday loans at all costs. They’re incredibly predatory and can send you spiraling into a vicious debt cycle. And that’s precisely why we don’t promote them on our site. We fully understand the harm they cause and take great pride in keeping you off that path. Luckily, the alternatives above allow you to obtain a reliable loan while still keeping your interest costs manageable. Moreover, many of the options above offer flexible lending terms, low fees, and zero prepayment penalties. You also benefit from an easy approval process, immediate access to funds, low annual income requirements, and sometimes zero loan origination fees.
If you’ve exhausted all of your resources and still can’t obtain an affordable loan, we recommend you work on your credit score instead of settling for a payday loan. By utilizing some of our tips above, we assure you that better alternatives will eventually come your way. On a side note, if you have experience with OppLoans, RiseCredit, or NetCredit – we want to hear from you. How was your experience? Do you want us to review other sites like these? Join the conversation and let us know.
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