What are some payday loan alternatives for bad credit?

If you have debts to pay back or need to cover your basic expenses, you don’t want to turn to a payday loan as your first option. But you might wonder, “Where can I get a loan that doesn’t have such high interest rates?”

You can consider taking out a personal loan from a bank or credit union. If you have good credit, oftentimes a bank or credit union will offer a much lower rate than a payday loan lender. Can you get a loan with bad credit? It depends on the lender, but your approval odds might be diminished.

A bank or credit union is a good option if the financial institution offers you a loan with a good rate and favorable repayment terms.

Sometimes coming up with quick cash just requires a little creativity. One thing you can do is sell stuff you no longer want or need. Now is the time to declutter and get rid of everything that doesn’t spark joy! If you don’t really use it that much, let it go.

You can sell your items on Facebook Marketplace, OfferUp, Poshmark, and Craigslist. Just think: Getting rid of your stuff can be just the thing you need to bring in some more money, helping you avoid a payday loan.

9. Break Out the Credit Card

While I’d never condone getting into credit card debt, if you’re thinking of going to a payday lender, your credit card is likely a better option. Although many credit card interest rates can be around 16% and up , this is still better than what payday loans offer.

So, you’ll likely pay less interest if you use your credit card strategically. Just make sure you don’t max out your credit card as this will affect your credit utilization. This, in turn, can lower your credit score.

10. Use a Line of Credit

Another option is to use a line of credit . Financial institutions may offer a line of credit that you can draw upon when you need funds. A line of credit is different from a loan in that there’s a set amount available that you can draw from. You only pay interest once you borrow the money.

If a financial institution will offer you a line of credit, giving you quick access to capital, this can prevent you from resorting to a payday loan.

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Chime’s Best Alternatives to Payday Loans

For example, Chime’s app gives eligible customers faster access to their money. If you have a Chime account with early direct deposit, you will be able to access your money up to 2 days earlier? than traditional banks.

If you just need a little extra money to cover an expense, Chime also offers its own overdraft protection for eligible members. Instead of getting hit with an overdraft fee , Chime spots its members up to $200 fee-free with SpotMe? .

And that’s not all, Chime’s Credit Builder Visa Credit Card has an ATM feature where members can withdraw cash via a cash advance with no interest or fees?.

Most of the payday loan alternatives above are applicable to those with bad credit. Also consider that some lenders will actually tailor their loans to borrowers with poor credit. These lenders may approve loan applicants with high debt-to-income ratios and bad to fair credit http://paydayloansohio.net/cities/oregon scores. Check to see if you qualify for a bad-credit loan.