Payday loan alternatives to consider

Use an interest-free cash advance app. Mobile apps like Earnin, Dave and Brigit can offer interest-free or low-fee advances on your paycheck up to two days ahead of time, though there are eligibility requirements and caps on how much you can borrow.

» COMPARE: Cash advance apps that cover you 'til payday

Get a personal loan from a credit union or online lender. A personal loan will likely carry a lower APR than a payday loan, so it’s more affordable. Credit unions tend to offer the lowest rates for bad-credit applicants, but you’ll need to be a member. Online lenders also serve bad-credit borrowers and can fund loans the next business day, but rates may be higher.

» COMPARE: See your bad-credit loan options from

Ask if your bank offers a small-dollar loan. Mainstream banks are beginning to offer small-dollar loans that can cover emergency expenses. U.S. Bank’s Simple Loan and Bank of America’s Balance Assist provide short-term funds for existing customers in good standing.

Borrow money from a family member or friend. A loved one may be able to spot you the funds This will save you money on interest, and you won’t have to undergo a credit check. Just make sure you agree to the terms of the loan, such as when you’ll pay it back.

Reach out to a community organization. There are local and regional organizations that provide free funds to cover essential expenses. Check NerdWallet’s database of local alternatives to payday loans to see what’s available in your state.

You could also consider a credit card cash advance or a pawnshop loan. Though these options should offer lower interest rates than a payday loan, they are still costly.

Once your immediate cash emergency passes, start building an emergency fund. If you can save even a few hundred dollars over time, then you’re repaying yourself rather than the lender when emergencies arise.

» MORE: Consider alternatives to payday loans

Payday loan alternatives to avoid

Long-term, high-interest installment loans: These loans extend repayment terms to as long as five years. You don’t need good credit — some may advertise themselves as no-credit-check loans — but you typically must meet the requirements of a payday loan. Interest charges mount quickly: A $3,200, two-year loan at 87% APR will end up costing $6,844.

Auto title loans: These short-term loans, where they’re legal, require you to hand over the title to your vehicle as collateral for the debt. They’re often compared with payday loans, but they can be even worse: If you don’t repay, the lender can seize your car.

» COMPARE: See your bad-credit loan options from

Ask if your bank offers a small-dollar loan. Mainstream banks are beginning to offer small-dollar loans that can cover emergency expenses. U.S. Bank’s Simple Loan and Bank of America’s Balance Assist provide short-term funds for existing customers in good standing.