All opinions and views are the advertiser’s and do not necessarily reflect the opinions and views of WXYZ Channel 7.
Are you looking for payday loans near me? If so, we want to tell you that these are very expensive loans, with over 1,000% APR. We also want to let you know that there are many cheaper alternatives to these predatory near me lenders for people with bad credit. In fact, most of them approve very bad credit payday alternatives, because they are no credit check at all. We will talk on them later in this guide.
Now, a few words about payday loans near me. Payday loans near me can be online loans or local stores that are near you. They are direct lenders, and most people think that because of this, they are cheaper. In fact, that is not truth. Payday loans near you searches have always led people to predatory expensive lenders that offer quick cash of up to $1,000 with very high ARPs, of over 1,000%.
For quick cash to cover short-term expenses like medical and utility bills, we highly recommend avoiding looking for payday loans near me and going for alternative payday loans instead. The best alternative payday loans offer excellent all-around terms and rates with minimal fees. These terms include sub 28% APRs (0% interest with cash advance apps) and no origination/prepayment penalties on loans up to $100,000. These terms apply to good credit and bad credit borrowers.
For people with very bad credit, who can’t qualify for bad credit personal loans, there are payday alternatives. These are more expensive, but not as payday near you lenders.
Avoid visiting the closest payday loan store near you and keep reading to learn about payday loan alternatives, including our top recommendations, pros/cons of PAL loans, how to qualify, and credit-building tips to bring your credit score to speed fast.
Best Payday Loans Near Me 2023
ZippyLoan – 4.9/5.0 – Best Overall
LifeLoans – 4.8/5.0 – Best Payday Loan Neat You Alternative
NextDayPersonalLoan – 4.8/5.0 – Best for Smaller Loans
Earnin – 4.8/5.0 – Best Cash Advance App No Credit Check
Brigit – 4.6/5.0 – Best Cash Advance App for the Unemployed
Alliant Credit Union – 4.6/5.0 – Best Credit Union
PenFed – 4.6/5.0 – Best for Former/Current Military
ZippyLoans
Rating: 4.9/5.0
ZippyLoans is an online marketplace offering payday alternative loans from $100 to $15,000 for bad credit score borrowers looking to cover short-term expenses like late utility bills or much needed vehicle repairs. If you are looking to avoid searching for “payday loans near me”, ZippyLoans can work.
ZippyLoan can’t be found from searches like closest payday loans near me, because it is an online platform.
We like how diversified ZippyLoan’s lender network is. They offer APRs starting at 12% up to 35.99% on flexible 6 to 72-month repayment terms. Funds can also be deposited to your checking account in as little as one business day. Maximum loan amount, interest rates, and all loan fees (including origination and prepayment penalties) vary by lender.
How to Apply: To apply for a ZIppyLoans loan, you must be 18 years of age or older with a regular job and complete application through the ZippyLoans online portal, providing your requested loan amount and all contact/financial details. It takes up to five minutes to complete. Once you have completed the application, you’ll be presented with a list of qualifying lenders.
Eligibility:
- At least 18 years of age
- U.S. citizen or permanent resident
- Valid checking or savings account
- Recurring employment income
- Completed online application
Highlights:
- Online marketplace
- 12.00% – 35.99% APRs
- Loans from $100 – $15,000
- Approval in 1 to 7 days
Pros:
- Only offers up to $15,000
- Great payday near me alternative
- Instant approval
- No minimum required credit score
- Excellent source of unsecured loans
- Large network of participating lenders
- Funds in as little as one business day
Cons:
- Not a direct lender
- Must have a regular income source
- Not all lenders report payment activity to the three credit bureaus
- Not available in New York, Oregon, West Virginia, and the District of Columbia
Terms: Payday alternative loans made through ZippyLoan feature Annual Percentage Rates (APRs) of 12% – 35.99%. Origination, prepayment, and lee fees depend on the lender, with all fees deducted from the loan proceeds. For example, if you receive a $5,000 loan and a 17% APR (no origination fee) on a 1 year repayment term, you would pay a total of $5,472.29 ($472.29 in total interest paid). APRs and repayment term length varies by lender. Several factors determine the APRs you pay, including but not limited to credit score, credit history, and any applicable state laws.
LifeLoans
Rating: 4.8/5.0
LifeLoans is an excellent source of short-term loans for people with bad credit. It is again an online platform, so don’t expect to find it near you. LifeLoans are much cheaper than predatory near you lenders.
Like NextDay, LifeLoans is an online marketplace connecting prospective good credit, fair credit, and bad credit borrowers with qualifying lenders competing for their business. Loan amounts range from $100 to $40,000 with APRs between 5.99% – 35.99% and repayment terms of up to 60 months. Origination, prepayment, and late penalties vary, depending on the lender.
How to Apply: To apply for a LifeLoans loan, you must complete an online application through the LifeLoans website, providing your requested loan amount and all contact/financial details to be paired with a list of qualifying lenders.
Eligibility:
- At least 18 years of age
- U.S. citizen or permanent resident
- Valid checking or savings account
- Completed online application
Highlights:
- Online marketplace
- 4.99% to 1386 % APRs
- For bad credit borrowers
- Loans from $100 to $40,000
- Approval in 1 to 7 days
Pros:
- Up to $40,000
- Near me alternative
- Soft inquiry
- Instant approval
- 5.99% – 35.99% APRs
- Excellent customer support
- No minimum required credit score
- Quick 5 to 10-minute application process
Cons:
- Not a direct lender
- No guaranteed approval
- Required minimum $1,000 monthly income
- Not all lenders fully transparent with rates and terms
Terms: Payday alternative loans made through LifeLoans feature Annual Percentage Rates (APRs) of 5.99% – 35.99%. Origination, prepayment, and lee fees depend on the lender, with all fees deducted from the loan proceeds. For example, if you receive a $7,000 loan and a 20% APR (no origination fee) on a 1 year repayment term, you would pay a total of $7,781.30 ($781.30 in total interest paid). APRs and repayment term length varies by lender. Several factors determine the APRs you pay, including but not limited to credit score, credit history, and any applicable state laws.
NextDayPersonalLoan
Rating: 4.8/5.0
NextDay is an excellent payday loan alternative allowing borrowers the comparison shop across hundreds of participating bad credit lenders for fast and easy cash for as little as $100. A single search on NextDay will likely dissuade you from visiting your local payday loan store.
Lenders on NextDay offer anywhere between $100 to $40,000 with varying loan requirements and terms. APRs go from 5.99% to 35.99%, with repayment terms from two to seven years. Depending on the lender, funds are deposited to your bank account in as little as one business day. Loan origination, prepayment, and late penalties vary.
How to Apply: To apply for a NextDay loan, you must complete an online application through Nextday’s website. Expect to provide your contact/financial information and desired loan amount to be matched with qualifying lenders competing for your business.
Eligibility:
- At least 18 years of age
- U.S. citizen or permanent resident
- Valid checking or savings account
- Regular job/receiving government benefits
- Completed online application
Highlights:
- Online marketplace
- Loans from $100 to $40,000
- Approval in 1 to 7 days
Pros:
- Up to $40,000
- Near me alternative
- Soft inquiry
- Instant approval
- Easy-to-use interface
- No prepayment penalties
- Loans from $100 to $40,000
- Excellent source of funding for short-term expenses
Cons:
- Not a direct lender
- Some loans offer 35.99%+ APR
- No hardship or forbearance options
- Late and insufficient funds fees apply
- Origination and prepayment fees vary by lender
Terms: Payday alternative loans made through NextDayPersonalLoan feature Annual Percentage Rates (APRs) of 12% – 35.99%. Origination, prepayment, and lee fees depend on the lender, with all fees deducted from the loan proceeds. For example, if you receive a $9,000 loan and a 24% APR (no origination fee) on a 1 year repayment term, you would pay a total of $10,212.44 ($1,212.44 in total interest paid). APRs and repayment term length varies by lender. Several factors determine the APRs you pay, including but not limited to credit score, credit history, and any applicable state laws.
Earnin
Rating: 4.8/5.0
Earnin is a cash advance app extending small loans of up to $150 per day ($750 per pay period) to borrowers At 0% interest. It’s an excellent way to get emergency cash for unexpected medical bills or similar expenses. With Earnin, no credit check funds can be received in as little as one business day through its Lightning SPeed program for a nominal fee of $0.99 to $3.99 per transaction. Standard funds transfer time is up to 2 business days.
The way Earnin works is very innovative. Connect your bank account to its app, get the desired loan amount, and watch Earnin get repaid when your paycheck comes in. Qualifying is also easy, with no minimum required credit score and a verified checking account receiving at least 50% of your direct deposit. Compared to your local payday loan store near you, Earnin terms are simply a better deal.
Although there is 0% interest, Earnin does get voluntary tips up to $14. At $150 per day or $750 per pay, Earnin offers the most cash out of all cash advance apps like well-known competitors Chime and Dave, which offer up to $200 and $500, respectively, with no service fees (Chime) nor a monthly membership fee (Dave).
How to Apply: To apply for Earnin, you must download the Earnin app, connect your checking account, and provide employment information using electronic timesheets and your work email address. Earnin’s Automagic Earnings feature can also import your earnings information automatically.
Eligibility:
- At least 18 years of age
- U.S. citizen or permanent resident
- Fixed work location
- Electronic timekeeping/pay stub proof of income
- Completed online application
- More than 50% of your direct deposit regularly sent to a valid checking account
Highlights:
- 0% interest
- Instant approval
- Approval in as little as 5 minutes
- Funds sent to your checking account
- Cash advances (up to $100 daily/$750 per pay period)
Pros:
- No credit check
- Same-day processing
- Up to $750 per pay period
- Available on IOS and Android
- Two funding options: standard transfer and Lightning Speed
- Higher loan amounts than competitors Brigit, Dave, and Chime
Cons:
- Up to $3.99 for Lightning Speed processing
- Does not report payment activity to three credit bureaus
- Required weekly, bi-weekly, semi-monthly, or monthly pay schedule
Terms: Earnin is a cash advance app that offers 0% cash advances to borrowers who get funds and repay it with their next paycheck. Repayment terms is a rescheduled debit (single installment) for your next pay period. An example $500 cash advance with 0% interest results in total loan payments of $500. Earnin is available in all 50 states.
Brigit
Rating: 4.6/5.0
Brigit is a preferred choice for borrowers who want a zero-interest short-term alternative payday loan that is repaid manually or by using your next paycheck. In exchange for a $9.99 monthly membership fee, Brigit allows you to cash advance up to $250 at 0% interest. Once you have repaid it, then you can take out another loan.
One knock on Brigit is that it offers a lower maximum installment loan limit than Earnin, which offers $100 per day or $750 per pay period. Consider it a better deal than loan stores near me, which you will find are very expensive. However, it does come with added value services like credit monitoring and financial education.
Consider Brigit an excellent source of funding for emergency expenses, such as unexpected medical bills or auto repairs.
How to Apply: To apply for Brigit cash advances, download the Brigit app on iOS/Android and upload your checking account information. Once an account review is complete with a paid monthly membership fee, Brigit will deposit money into your account up to $250.
Eligibility:
- At least 18 years of age
- U.S. citizen or permanent resident
- $0+ checking account balance
- Minimum 60 days of checking account activity
- Receive a direct deposit every two weeks
- Brigit score from 40 to 100
Highlights:
- 0% interest
- Cash advances up to $250
- Approval in as little as 5 minutes
- Funds sent to your checking account
- Cash advances (up to $100 daily/$750 per pay period)
Pros:
- 0% interest loans
- Instant approval
- Excellent customer service
- No late fees are penalties
- Innovative scoring system (“Brigit score”)
- Ability to extend installment loan payments
Cons:
- Loans only up to $250
- Need cash surplus every two weeks
- Monthly $9.99 membership fee required
- Must have a minimum 60-day-old checking account
Terms: Brigit is a cash advance app that offers 0% cash advances to borrowers who get up to $250. Repayment terms is a rescheduled debit (single installment) for your next pay period. An example $250 cash advance with 0% interest results in total loan payments of $250. Brigit is available in all 50 states.
Alliant Credit Union
Rating: 4.6/5.0
Alliant Credit Union is an excellent payday loan alternative, offering loans from $1,000 to $50,000 at 6.24% to 27.24% APRs. Kudos for its solid APR range, which falls hundreds of percentage points less than traditional payday loans, known for their otherworldly 400% APRs. Repayment terms are also favorable at one to five years. Plus, approvals come in as little as one business day.
One of our favorite features with Alliant Credit Union is its debt protection plan benefit, which cancels out your monthly loan payments and loan balances in exchange for subscribing to different protection plans. For example, Its Total plan covers death, disability, and involuntary employment versus its Combined plan, which only covers death and disability. As a result, its $1.99 monthly cost for every $1,000 outstanding loan balance for the Total plan is very fair.
All in all, consider Alliant Credit Union an excellent source of fast payday alternative loan funding from one of the more reputable credit unions in the country. Although it has no branch locations unlike your local payday loan store near you, Alliant’s rate and fee structure is more than good enough to compensate.
How to Apply: To apply for an Alliant Credit Union payday alternative loan, you must complete a loan application through Alliant Credit Union’’s website. It will ask for your contact information, desired loan amount, and financial details, including supporting documentation such as W-2s and pay stubs to verify employment.
From there, Alliant will conduct a hard inquiry to determine your creditworthiness. Expect approval in as little as one business day.
Eligibility:
- At least 18 years of age
- U.S. citizen or permanent resident
- Minimum 640 credit score
- Recurring employment income
- Must be an Alliant Credit Union member
- Completed loan application
Highlights:
- Loans from $1,000 – $50,000
- APRs from 6.24% – 27.24%
- Debt Protection plan available
Pros:
- Instant approval
- No prepayment penalties
- Available in all 50 states
- Loans from $1,000 to $50,000
- Debt protection plan available
- Repayment terms from 1 to 5 years
- Excellent APR range (6.24% to 27.24%)
Cons:
- Online only
- No pre-qualification
- Insufficient and late fees apply
- No joint or co-signed PAL option
- Minimum credit score of 620 required
- Must be an Alliant Credit Union member
Terms: Payday alternative loans made through Alliant Credit Union feature Annual Percentage Rates (APRs) of 6.24% – 27.24%. Origination, prepayment, and lee fees depend on the lender, with all fees deducted from the loan proceeds. For example, if you receive a $12,000 loan and a 8% APR (no origination fee) on a 1 year repayment term, you would pay a total of $12,526.33 ($526.33 in total interest paid). APRs and repayment term length varies by lender. Several factors determine the APRs you pay, including but not limited to credit score, credit history, and any applicable state laws.
PenFed
Rating: 4.6/5.0
PenFed is a solid payday loan alternative for joint and co-signed loan options for good credit borrowers with a minimum of 670 credit scores.
With PenFed, loans start at $600 and top out at $50,000 on one to five-year repayment terms. APRs go between 7.74% and 17.99%. Kudos for not charging any origination fees, although late payment and insufficient funds fees are steep at $29 and $35, respectively.
With competitive APRs starting at 7.74%, PenFed borrowers can save hundreds of dollars in interest payments throughout a $10,000 loan versus a traditional payday loan. As traditional payday loans are unsecured debt, a joint or co-signed PAL option is an excellent choice for bad credit borrowers who need an extra hand securing lower interest rates. PenFed’s 7.74% – 17.99% APR range is far from the average payday loan APR of 400%. If you are looking for payday loans near me online, no terms come close to PenFed’s 17.99% APRs for bad credit borrowers.
How to Apply: To apply for a PenFed loan, you must visit the PenFed website and complete an online application.
Eligibility:
- At least 18 years of age
- U.S. citizen or permanent resident
- Minimum 670 credit score
- No history of bankruptcies
- Debt-to-income ratio below 40%
Highlights:
- Loans from $600 – $50,000
- APRs from 7.74% – 17.99%
- Repayment terms of 1 to 5 years
Pros:
- Soft credit check
- Terms up to 60 months
- Available in all 50 states
- Co-signed and joint borrowing
- Nor origination nor prepayment penalties
- Approval in as little as one business day
- Forbearance and hardship options available
Cons:
- $29 late payment fee
- $35 insufficient funds fee
- No direct creditor payments
- Minimum 700 required credit score
Terms: Payday alternative loans made through PenFed feature Annual Percentage Rates (APRs) of 7.74% – 17.99%. Origination, prepayment, and lee fees depend on the lender, with all fees deducted from the loan proceeds. For example, if you receive a $8,000 loan and a 12% APR (no origination fee) on a 1 year repayment term, you would pay a total of $8,529.48 ($529.48 in total interest paid). APRs and repayment term length varies by lender. Several factors determine the APRs you pay, including but not limited to credit score, credit history, and any applicable state laws.
What Are Payday Loans Near Me?
Also referred to as cash advance, check advance or deferred deposit loans, payday loans near me are the local store lenders that offer short-term, unsecured, instant approval, and high-interest rate loans paid back by your next payday. Loan amounts go up to $500 with repayment terms of two to four weeks. However, payday loans are known for their outrageously high 400% APRs, which are commonly known for leading borrowers into vicious debt cycles where the total cost of interest payments may exceed your principal amount.
As of this writing, payday loans are illegal in 13 states. These states are Arizona, Arkansas, Connecticut, Georgia, Maryland, Massachusetts, New Jersey, New York, North Carolina, Pennsylvania, Vermont, West Virginia, and the District of Columbia. Forget searching for “payday loans near me” in these places.
Each state imposes a rate cap, maximum loan amount, and term in states where payday loans are legal. For example, Alabama allows payday loans with a 456.25% rate cap, a maximum loan amount of $500, and a 10 to 31-day repayment term.
Illinois requires that all payday loans adhere to a 36% rate cap and a maximum loan amount of up to 25% of your gross monthly income. Repayment terms also extend further from 13 to 45 days.
It is important to differentiate payday loans near me and payday alternative loans, like these that we offer in this article. Our recommendations lead to much cheaper loans.
How Do Payday Loans Near Me Work?
The way payday loans near me work is very straightforward to understand.
The main difference between local store payday loans near me and online loans is that when local, you visit a store, apply and receive the money there. When online, this process is online and you don’t have to visit stores.
While applying for a payday loan, borrowers write post dated checks for loan amounts. From there, lenders hold onto checks and cash them on the next due date with the ability to extend. Then, on or before the due date, borrowers pay off the loan balance or allow lenders to convert a postdated check to cash or withdraw funds from the borrower’s checking account.
After making a loan request online or in person, funds are dispersed to your checking account in as little as the next business day. Payday lenders require two to four-week repayment terms, paid with a one-time lump sum (online personal loans and their installment structure). At no point do payday lenders require a credit check.
Typically, payday lenders offer two ways to pay off your debt: a postdated check or debit funds directly from your checking account.
Payday loans can also access fees from $10 to $30 for every $100 borrowed. So for every $100 borrowed, a $15 fee blows past the average payday loan APR of 400%. Aside from these standard fees, payday loans may also assess origination, late, return checks, and insufficient funds fees of $35 for every failed transaction.
It is not unheard of for payday lenders to attempt withdrawing from your bank account two or more times.
Rollover fees on a small $500 payday loan can easily exceed $150, creating a vicious debt cycle for borrowers.
You only need a valid checking account and proof of income to take out a payday loan.
How Do I Qualify For a Payday Alternative Loan?
Qualifying for an alternative payday loan is easy.
Online Marketplaces. To qualify for a ZippyLoan, Lifeloans, or NextDay PAL loan, you must be a U.S. citizen/permanent resident 18 years of age or older with recurring employment income and a completed application through the website. From there, view a list of qualifying lenders competing for your business.
Cash Advance Apps. To qualify for cash advance apps like Earnin and Brigit, download the app, connect your checking account, fill out your contact/financial information with proof of income, and pay 0% interest on loans up to $100 per day or $750 per pay period.
Credit Unions. To qualify for PALI and PAL II loans from top-rated credit unions like Alliant Credit Union in Pentagon Federal Credit Union, you must be 18 years or older with credit union membership and a minimum $5 deposit before completing an online application.
Pros and Cons of Payday Lenders Near Me
Here are the pros and cons of Instant approval payday lenders.
Pros
Easy to Qualify. Unlike traditional bank or credit union loans, payday loans only require being 18 years of age or older with a valid checking account, governmental ID, and income source.
Approval in Minutes. Most payday loans are approved in as little as 15 minutes.
No Minimum Required Credit Score. Unlike alternative payday loans, payday loans require no minimum credit score.
Unsecured Loans. Unlike auto title loans, payday loans are unsecured loans that do not require putting up personal property as collateral. Therefore, in case of default, no property can be seized by lenders. At most, payday lenders have direct access to your bank account for withdrawing funds on the due date.
Cons
Predatory Rates. Payday loans average about 400% APRs. For perspective, a $409.32% APR, $500 payday loan will net about $78.50 in finance charges, resulting in a loan repayment amount close to $600 (assuming no rollover or additional interest/fees.
No Reporting to Credit Bureaus. Instant approval payday lenders do not report positive payment activity to each of the three major credit reporting bureaus —TransUnion, Equifax, and Experian.
What Are Payday Loans Used for Typically?
Payday loans cover all sorts of short-term expenses, including non-negotiable everyday expenses like paying off a late utility bill or unexpected medical expenses up to $500. No wonder “payday loans near me” is a popular Google search term.
With fewer approval requirements, payday loans are a go-to source for fast cash, just as long as you are 18 years of age or older with a valid governmental ID, income source, and checking account.
What Are the Best and Cheapest Alternatives to Avoid Payday Loans Near Me?
To avoid searching for “payday loans near me,” we highly recommend these lower APR and flexible term alternatives:
Personal Loans for Bad Credit. Personal loans for bad credit are extended to borrowers with a credit score of less than 670. Annual percentage rates fall in the 18% to 35.99% range, offering loans up to $20,000. Repayment terms vary from 24 to 60 months, with varying origination, prepayment, and late fees, depending on the state and lender.
Our favorite lending companies for personal loans for bad credit include Upstart, OneMain Financial, LendingPoint, OppLoans, and NetCredit. Most of these do not have in-person locations unlike your local payday loan store near you.
Alternative Payday Loans. Federal credit unions offer alternative payday loans. Unlike payday loans, payday alternative loans (installment loans) are capped at 18%, paid monthly up to a specified term length with no rollovers. Average repayment terms are one to six months.
Two types of alternative payday loans are PAL I and PAL II.
- PAL I loans offer between $200 and $1,000 with one to six-month repayment terms. To qualify, you must be a credit union member for a minimum of 1 month.
- PAL II loans offer up to $2,000 with one to 12-month repayment terms. In addition, unlike PAL I loans, there is no waiting period for credit union membership.
Our favorite alternative payday loans come from four credit unions — Alliant Credit Union, Pentagon Federal Credit Union, Navy Federal Credit Union, and First Tech Federal Credit Union.
Loan Apps. Also called cash advance apps, loan app companies like Earnin and Brigit allow you to take out cash advances at $100 per day/$750 per pay PERIOD at 0% interest, repaid with your next paycheck. It’s an excellent source of quick and fast cash for unexpected expenses such as past-due medical or utility bills.
Buy Now, Pay Later. Also referred to as BNPL apps, Buy Now Pay Later allows you to make installment loans at the point of purchase at participating companies at 0% interest. Terms are to pay in full within 30 days, with the entire balance due, or pay in four interest-free installments.
Some of the more popular BNPL companies include Earnin and Brigit.
Credit Unions. An excellent source of alternative payday loans is credit unions. They have lower interest rates and longer repayment terms than traditional payday loans.
They carry two alternative payday loans: PAL I and PAL II.
- PAL I loans go from $200 to $1,000 with a 1 to 6 months repayment term.
- PAL II loans go up to a $2,000 max with a 1 to 12-month repayment term.
Both PAL loans have APRs capped at 18%, which is fair for a fair-to-good credit borrower.
What Are No Credit Check Loans?
No credit check loan companies do not check your credit score to determine eligibility.
Popular no-credit-check options include traditional payday loans, no-credit-check installment loans, and auto title loans. We highly advise against these three loan types due to predatory interest rates, a revolving cycle of debt, and excessive fee structure.
In addition, no credit check loans do not report on-time payments to credit bureaus.
Instead of no credit check loans, go for payday loan alternatives such as PAL I/PAL II, cash advance apps, and POS financing from reputable companies like Affirm and Klarna. Another excellent source of PAL loans are credit unions, loans for lower interest rates and longer repayment terms than traditional payday loans.
How Do I Qualify for Online Payday Loan Alternatives?
Qualifying for an online payday loan alternative rather than payday loans near me is a straightforward process.
Pull Your Credit Score. The first step to qualifying for an online payday loan is to pull your credit score. Visit annualcreditreport.com and pull your credit score from the three major reporting credit bureaus — TransUnion, Equifax, and Experian.
From there, carefully check that all the information on your credit report is accurate. According to FICO, some errors to look out for include incorrect first name/last name, account reported more than once, incorrect loan balances, and a wrong creditor.
If you notice any errors on your credit report, be sure to file a dispute. Credit bureau disputes usually take up to 45 business days. Be sure to provide as much supporting documentation as possible and clearly state all the facts.
Improve Your Credit Score. Work on your credit score if you are not hurrying to take out a Payday alternative loan. Increasing your credit score will make you more eligible for a lower interest rate and more favorable terms.
Aim for a minimum credit score of 670. Also, look to lower your debt-to-income ratio, anything below 36%. Different lenders require higher or lower credit scores, evaluating your income and credit history.
Gather All Loan Documentation. Gather all the documentation needed to complete an online payday loan alternative application, including proof of identity (state-issued ID/driver’s license), income verification, and proof of address.
Pre-Qualification. Applying for an alternative payday loan will allow you to compare rates and terms between different lenders and companies. Expect only soft inquiries to be performed here, which will not ding your credit score. Try to qualify from a minimum of three funding sources.
How Do I Find the Best Payday Loan Alternative?
Here are our recommendations for avoiding the closest payday loan store near you and finding the best payday loan alternative.
Interest Rates. Look for payday loan alternatives/companies with interest rates not exceeding 35.99%, regardless of credit score. Top-tier PAL programs offered by credit unions cap APRs at 18%, saving hundreds of dollars in interest rate payments over the life of a loan.
No Fees. Look to payday loans near me alternatives offering no application, origination, or prepayment penalties. However, late and insufficient funds fees are typically non-negotiable and apply to most.
Minimal Barrier to Entry. At best, credit unions offer payday loans near your requiring a one-time membership fee or a minimum deposit of $5 to a checking or savings account. Online applications take a few minutes to complete.
Miscellaneous Perks. Outside of interest rates, favorable rates/terms, and a minimal barrier-to-entry, look to extra perks that matter to your financial situation, such as consumer education programs, the ability to earn cash back, and fee-free ATM networks, long a favorite of Alliant Credit Union members.
Things to Avoid with Payday Loans
When dealing with payday loans, we recommend being highly mindful of the following:
Late Payments. Although payday loans near you or online charge a percentage for every $100 borrowed, they do not include late fees. Also referred to as return check fees, late fees could go as high as $39. On top of that, your bank may issue an insufficient funds charge due to over-withdrawing. As a result, it is common for payday loans to accrue interest fees and late payments over the principal amount.
Look to Other Alternatives First. Plenty of payday loans available for bad credit borrowers need to assess 400% APRs. These include bad credit personal loans, employer advances, credit card advances, loan apps, POS financing, and credit unions with 28% APR caps.
Shop Around. One alternative payday loan company near you may offers a 290% APR versus another at a farther distance with a 410% APR. Even a few extra seconds of shopping around could save you hundreds of dollars in interest and fees.
Due Dates. To avoid entering a vicious debt cycle, look to pay your payday loan on or before the due date. Kudos to any payday lender that offers no rollovers and extended repayment terms.
Tips On Improving Your Credit Score
Here are our top strategies for increasing your credit score, regardless of whether or not you are searching for “payday loans near me.”
Check Credit Reports For Errors. Put each of your three credit reports (Equifax, Experian, and Transunion) from annualcreditreport.com and read over them with a magnifying glass. Check for errors, such as incorrect balances, duplicate creditors, and wrong addresses. File disputes with each credit bureau and expect resolution in 30 to 45 business days.
Even a single error on your credit report could result in 40 or more deducted points, costing you an opportunity to secure the lowest interest rate payday alternative loans.
Lower Your Credit Utilization Ratio. Try to lower your credit utilization ratio below 30%. The higher your lower utilization ratio, the greater risk you pose to the lender. To achieve this, pay off outstanding balances or distribute payments equally across your credit cards. Regardless of whether you are looking for a payday loan store near you or an alternative payday loan online, managing your credit utilization ratio is key.
Pay All Bills On Time. Make on-time bill payments every month by enrolling in automatic billing. The longer you’re on time payment history, the higher your credit score. Conversely, even a single late or missed payment can cause your score to drop drastically.
Debt Consolidation. The best way to boost your credit score is to enroll in a debt consolidation loan to manage multiple high-interest payments into a single lower-interest monthly payment.
Lengthen Your Average Account Age. Try not to close an account, even if it’s an unused account more than 10 years old. Old credit accounts increase your average credit age, making you a lower risk to lenders.
Are The Payday Lenders Near Me Legit?
Every state has usury laws that cap loans or line of credit interest rates. When looking for payday loans near you, verifying payday lender terms to the state laws below is a good start to determine if they are legit.
Here are the usury laws for payday loans in each state:
Alabama. Payday loans in Alabama are legal. Max APR is 456.25% on loans up to $5,000 on 10 to 31-day repayment terms.
Alaska. Payday loans in Alaska are legal. Max APR is 520% on loans up to $500 with a 14-day repayment term.
Arizona. Payday loans are not legal in Arizona.
Arkansas. Payday loans are not legal in Arkansas.
California. Payday loans in California are heavily regulated. Max APR is 459% on loans up to $300 and a 31-day loan term.
Colorado. Payday loans in Colorado are heavily regulated. APRs vary on loans up to $500 and a minimum 6-month repayment term.
Connecticut. Payday loans are not legal in Connecticut.
Delaware. Payday loans in Delaware have no APR limit on loans up to $500 with a max 60-day repayment term.
Florida. Payday loans in Florida have a max 304% APR on loans up to $500 with a max 7 to 31-day repayment term.
Georgia. Payday loans are not legal in Georgia.
Hawaii. Maximum APR of 459% on loans up to $600 with a max 32-day repayment term.
Idaho. Idaho payday loans have no limit on APRs up to a maximum of $1,000.
Illinois. Max APR of 403%, up to the lesser of 25% gross monthly income or $1,000. Repayment terms are 13 to 45 days.
Indiana. Max 390% APRs and max loan amounts of $550 or 20% of gross monthly income. Minimum 14-day repayment term.
Iowa. Max 133% APR on loans up to $500 and a maximum 31-day repayment term.
Kansas. Charges up to 390% APRs on loans up to $500 with 7 to 30-day repayment terms.
Kentucky. Max APR of 459% on loans up to $500 on 14-60 day repayment terms.
Louisiana. Max APR of 780% on payday loans on loans up to $350. Repayment term up to 60 days.
Maine. from Finder.com: 30% per year on amounts up to $2,000 or a fee of $5 for amounts financed up to $75; $15 for amounts financed $75.01-$249.99; or $25 for amounts financed of $250 or more.
Maryland. Payday loans are not legal in Maryland.
Massachusetts. Payday loans are not legal in Massachusetts.
Michigan. Max APR 390% on payday loans up to $600 with a max 31-day repayment term.
Minnesota. Max APR 390% on payday loans up to $350 with a max 30-day repayment term.
Mississippi. Max APR of 520% on payday loans up to $500.Repayment terms are a max of 30 days for payday loans under $250 and 28 to 30 days for payday loans of $250 to $500.
Missouri. Max APR of 1950 % on payday loans up to $500 with 14 to 31-day repayment terms.
Montana. Max APR of 36% on payday loans up to $300 with a max 31-day repayment term.
Nebraska. Max APR of 459% on payday loans up to $500 with a max 34-day repayment term.
Nevada. No limit on APRs on payday loans up to 25% of your expected gross monthly income. Maximum 35-day repayment term and up to 90 days if structured as installment loan without extension.
New Hampshire. Max APR up 36% on payday loans up to $500 with a 7 to 30-day repayment term.
New Jersey. Payday loans are not legal in New Jersey.
New Mexico. Payday loans are not legal in New Mexico.
New York. Payday loans are not legal in New York.
North Carolina. Payday loans are not legal in North Carolina.
North Dakota. Max APR of 520% on payday loans up to $500 with a max 60-day repayment term.
Ohio. Max APR of 28% on payday loans up to $500 with a max 31-day repayment term.
Oklahoma. Max APR up 390% on payday loans up to $500 with a max 12 to 45-day repayment term..
Oregon. Max APR of 156% on payday loans up to $50,000 with a max 31-day repayment term.
Pennsylvania. Payday loans are not legal in Pennsylvania.
Rhode Island. Max APR of 260% on payday loan $3,500 with a minimum 13-day repayment term.
South Carolina. Max APR of 390% on payday loans up to $550 with a max 31-day repayment term.
South Dakota. No APR limit on payday loans up to $500.
Tennessee. Max APR of 459% on payday loans up to $425 ($500 check) and max 31-day repayment term.
Texas. Max APR of 309.47% with no maximum loan amount with repayment terms of 7 to 31 days.
Utah. No APR or limit on payday loans. Repayment term of up to 10 weeks.
Vermont. Payday loans are not legal in Vermont.
Virginia. Max APR of 687.76% on payday loans up to $500. Minimum repayment term of two pay periods.
Washington. Max APR of 390% on payday loans, up to the lesser of $700 or 30% of your gross monthly income. Maximum 45-day repayment term.
West Virginia. Payday loans are not legal in West Virginia.
Wisconsin. No APR limit on payday loans up to $1,500 or 35% of your gross monthly income, whichever is lesser. Max 90-day repayment term.
Wyoming. Max APR up 780%. No maximum payday loan limit with a 1-calendar month repayment term.
Tips On Getting Out Of A Payday Loan Debt Cycle
Unfortunately, vicious debt cycles perpetrated by payday lenders are hard to break.
However, there are some strategies for breaking the cycle of debt to avoid searching for “payday loans near me.”
Stop Borrowing Money. The first step to get out of a payday loan debt cycle is to stop borrowing money. Alternative payment methods include using cash, producing checks, charging prepaid debit cards, or borrowing from friends and family members at 0% interest.
Consider Lifestyle Changes. Perform an accounting of your monthly income and expenses. Determine your top five biggest monthly expenses before devising an action plan. For example, trading in your lease for an older make and model vehicle or cutting down on entertainment expenses help free up the budget for non-negotiable bills typically paid for using traditional payday loans.
Debt Repayment Strategy. Work to pay off your highest-interest debts first, followed by lower interest. A second death repayment strategy is the debt snowball method, which pays off the depth with the lowest balances before making minimum payments on other debts.
Once a debt is paid in full, work on the next highest debt and repeat the process.
What Action Can I Make Against Illegal Payday Lenders?
Fortunately, there are many ways to take action against no credit check payday lenders illegally operating in your state. Let’s get back at these predatory lenders.
We recommend filing a complaint with your state’s Attorney General, consumer protection office, or Consumer Financial Protection Bureau (CFNBB). The Federal Trade Commission also plays an active role in penalizing payday lenders engaging in deceptive billing and collection practices or blatant evasion of state/federal consumer protection laws.
The quickest way to file a no credit check payday lender complaint with your state is by calling 311.
Be sure to familiarize yourself with your state’s payday lending statutes. In addition, the National Conference of State Legislature has a helpful resource page for general information purposes only.
How Did We Rank These Lenders?
To rank the best alternative payday loan companies, we use the following criteria:
APRs. We prefer alternative payday loan companies with APRs capped at 28%, a world of difference compared to payday loans and their 400% APRs.
Long Repayment Terms. Look for alternative payday loans that can be paid back over several months, divided into equal monthly payments. Unlike shorter-term payday loans (2-4 weeks), PALs can be paid in 1 to 12 months.
Minimal Fees. Unlike traditional payday loans assessing as high as $15 fees per $100 borrowed, alternative payday loans should come with no origination, application, or prepayment penalties. The only acceptable fees are late and insufficient funds fees.
Extra Perks. Many lenders offer additional perks such as no payment required for up to 45 days and reporting your payment history to credit bureaus. Payment history to credit bureaus accounts for 35% of your credit score calculation.
Frequently Asked Questions
Do payday loan alternatives offer guaranteed approval?
Not all payday loan alternatives get guaranteed approval. Eligibility can be based on credit score, income, and debt-to-income ratio, with approvals anywhere from one to seven business days. Expect cash advance apps like Earnin and Brigit, who offer same-day approvals versus up to 7 business days for credit unions offering PALs.
Do payday alternatives only come from direct lenders?
No, not all payday alternative loans come from direct lenders.
Today, online marketplaces like ZippyLoans and OppLoans, with hundreds of reputable lenders, offer an increasing number of payday alternative loans.
Do all payday alternative loans perform no credit checks?
No, unlike payday loans near you, some payday alternative loans do run credit checks. For example, top-rated credit unions like Pentagon Federal Credit Union, Alliant Credit Union, and Navy Federal Credit Union all require credit checks to be eligible for sub 18% APR PAL I or PAL II loans.
Final Thoughts
All in all, forget searching for “payday loans near me” and go for payday alternative loans. There is no shortage of alternative payday loans with favorable APRs, rates, and fee structures over predatory payday loans and the vicious debt cycle they create. Whether it’s an online marketplace (e.g ZIppyLoans), cash advance app, POS financing, or reputable credit union, getting 400% APRs for the privilege of $500 in quick cash at a payday loan store near you should no longer even be a remote possibility.
