What are the best payday loan alternatives?

Good lenders for small personal loans that are not payday loans include Avant, LendingClub and Upstart. They all offer far lower APRs than any payday loans – below 36% – and have payback periods of up to 60 months. Payday loans are short-term loans secured by the borrower’s next paycheck. Once the borrower gets their check, they must pay back the full loan amount plus interest. And the APRs are extremely high, often as much as 400%.... read full answer

Payday loans are targeted toward people with bad credit. But it’s wise to avoid them and go for more traditional personal loan providers that consider people with bad credit.

Small personal loans that are not payday loans:

• Avant: Loans as small as $2,000. 600+ credit score required. APR range of 9.95% - 35.99%. Origination fee up to 4.75%.
• LendingClub: Loans as small as $1,000. 600-640+ credit score required. APR range of 6.95% - 35.89%. Origination fee of 1% - 6%.
• Upstart: Loans as small as $1,000. 620+ credit score required. APR range of 4.73% - 35.99%. Origination fee of 0% - 8%.

There are plenty of decent personal loans for people with bad credit, but they may not always offer small amounts. For example, LendingPoint considers people with credit scores as low as 585, but their minimum amount to borrow is $5,000. Their APRs range from 9.99% to 35.99%, and their origination fee is 0% to 6%. Similarly, FreedomPlus has a minimum credit score of 620, APRs of 5.99% - 29.99%, and a minimum loan amount of $7,500.

Another good alternative to a payday loan is a secured personal loan. With a secured personal loan, you’ll have to put up something of value as collateral in order to borrow. But your approval odds will be high, even with bad credit. And the rates are much lower than those of payday loans.

You can borrow $2,000 with bad credit from LendingClub, Upgrade and Upstart, among other lenders. Most of the best places to borrow $2,000 with bad credit will require credit scores toward the upper end of the bad credit range. But people who cannot qualify can consider other options like no credit check loans... read full answer, secured personal loans, and borrowing from friends and family.

Best Places to Borrow $2,000 With Bad Credit

• LendingClub: 600 - 640 credit score needed
• Upgrade: 620 credit score needed
• Upstart: No credit score needed
• Avant: 600 credit score needed
• NetCredit: Bad credit considered

Alternatives for Borrowing $2,000 with Bad Credit

If you can’t qualify for a loan from any of the above lenders, there are other ways to borrow $2,000 with bad credit.

Secured personal loans: These loans offer much better approval odds than regular personal loans, but they require collateral.

No credit check personal loans: There are a few personal loan providers that don’t do a credit check, but they only offer a few hundred to a few thousand dollars and have very expensive APRs.

Friends and family: These people are less likely to care about your credit score and should give you better terms than a traditional lender.

Auto title lenders: You can get a 15 to 30-day loan equal to a portion of your vehicle’s value. The interest is very expensive (as much as 25% of what you borrow), and you risk losing your car if you can’t pay back this type of loan. Avoid them if possible.

Pawnshops: You could get a loan of any size depending on the value of the items you bring in. But you risk losing your property if you can’t reclaim it in the set timeframe.

Upstart Disclosure: Your loan amount will be determined based on your credit, income, and certain otherinformation provided in your loan application. Not all applicants will qualify for the fullamount. Minimum loan amounts vary by state: GA ($3,100), HI ($2,100), MA ($7,000),NM ($5,100), OH ($6,000).

The full range of available rates varies by state. The average 5-year loan offeredacross all lenders using the Upstart platform will have an APR of 24.83% and 60monthly payments of $26.36 per $1,000 borrowed. For example, the total cost of a$10,000 loan would be $15,817 including a $594 origination fee. APR is calculatedbased on 5-year rates offered in the last 1 month. There is no down payment and noprepayment penalty. Your APR will be determined based on your credit, income, andcertain other information provided in your loan application. Not all applicants will beapproved.