Payday Loan Alternatives, Get a Decision in Minutes

When you sign, you give the lender permission to collect from your checking account on the due date. Online lenders do this with an electronic debit (ACH). Some storefront lenders ask for a post-dated check instead.

If the money's in your account, that's the end of it. If it isn't, the payment can bounce, which may trigger fees from your bank and the lender. That's why it pays to line up your due date with the day your paycheck actually clears, not just the day you get paid.

Unsecured. You don't put up your car, your home or anything else as collateral. The lender relies on your income and your bank account instead, which is part of why the fees are high.

Neither, strictly. It's closed-end credit repaid in a single lump sum. That's different from an installment loan, which you repay in set monthly payments, and from revolving credit like a credit card, where you can borrow again as you pay down the balance.

You'll hear payday loans called payday advances, cash advances or deferred deposit loans. They're the same basic product. Paycheck advance apps are different: they advance wages you've already earned, usually for a tip or subscription fee rather than a loan fee. Our guide to how payday apps work walks through the differences.

A $75 fee on a $500 loan might not sound like much. But you're paying it for just two weeks. Stretch that same cost across a full year and the annual percentage rate (APR) works out to about 391%.

APR is the standard way to compare the cost of different kinds of credit, which is why lenders have to show it. It's also why a payday loan works best as a one-off bridge, not something you keep going back to.

If you can't repay on the due date, some states let you pay just the fee and push the loan back another two weeks. That's a rollover.

Do it three times on a $500 loan and you've paid $300 in fees while still owing the original $500. Each renewal adds a fee without shrinking what you owe. For a closer look at the numbers, see what it costs to borrow $500 until payday.

Credit card APRs typically sit in the low-to-mid 20s. Credit union payday alternative loans are capped at 28% APR. The personal loans lenders in our network offer range from 5.99% to 35.99% APR, repaid over months instead of weeks. If you qualify for one of these, it'll almost always cost less. And if card balances are part of what's squeezing your budget, consolidating credit card debt can bring the monthly cost down.

Around 18 states plus Washington, D.C. ban high-cost payday loans or cap rates so low that payday lenders don't operate there. That includes New York, New Jersey, Arizona, Georgia and North Carolina. If you live in one of them, you'll want to look at the alternatives further down this page.

State law sets the ceiling. California caps a payday loan at $300, for example, and Florida at $500. Other states allow more or tie the limit to a share of your monthly income. Lenders in Covero's network offer $250 to $3,000, but your state's cap always comes first.

Many states require payday lenders to offer an extended payment plan if you're struggling to repay. It splits what you owe into smaller installments, often at no extra cost. You usually have to ask for it before the loan comes due.

For the rules where you live, see our state-by-state guide to payday loan laws.

Many do, just not always the way a bank does. Some use a soft check or a specialty consumer-reporting database, which doesn't affect your credit score. Others run a hard inquiry. The lender that reviews your request will tell you what kind of check it runs before you accept an offer.

Usually not while you're paying on time, because most payday lenders don't report to the three major credit bureaus. That also means an on-time payday loan won't help you build credit.

The damage comes if you default and the debt goes to a collection agency. Collection accounts can appear on your report and pull your score down for years. Our guide to credit score ranges explains what that can mean for future borrowing.

• Steady income, and how often you're paid
• An active checking account in your name, often with a few months of history
• Your existing payday loans, if your state tracks them
• Basic ID and contact details

For larger loans, lenders also weigh your debt-to-income ratio. If you're rebuilding credit, it's worth knowing how lenders look at bad credit across other loan types, and a few steps can help you improve your credit score before applying.

• The lender tries to debit your account, and a failed payment can bring overdraft or returned-payment fees from your bank on top of a late fee
• The lender may offer a rollover, which means paying another fee to push the due date back
• After repeated missed payments, the debt can go to a collection agency, and that's usually when it shows up on your credit report

• Ask each lender for an extended payment plan, in writing, before the next due date
• Stop taking a new loan to pay off an old one, even if it feels like the only move this week
• Look at rolling the balances into one lower-rate installment loan, so you have a single payment with an end date
• Talk to a nonprofit credit counselor. Many offer free sessions and can set up a debt management plan

Consolidation won't suit everyone, but it's worth understanding how debt consolidation works before you rule it out.

Yes. You can revoke a lender's permission to take automatic payments, and your bank can walk you through how. You'll still owe the money, so pair it with a repayment plan. If a lender is breaking your state's rules, you can file a complaint with your state regulator or the CFPB. Our guide to spotting predatory lending lists the red flags.

Federal credit unions offer PALs of $200 to $2,000, repaid over 1 to 12 months, with APR capped at 28%. You usually need to be a member for a short time first, so here's how credit unions work.

A personal loan spreads repayment over months at a lower APR, if your credit allows it. Even with fair credit, the monthly payment on an installment loan can be easier to manage than one lump sum due in two weeks. If you're torn between borrowing and putting it on a card, here's how a personal loan compares with a credit card.

• Ask the biller for a payment plan. Hospitals, utilities and many landlords will split a bill if you ask
• Ask your employer about an advance on wages you've already earned
• Paycheck advance apps can cover small gaps, often for a tip or monthly fee
• A loan from family works best with the terms written down

We cover each of these in more detail in eight cheaper alternatives to a payday loan.

You fill in one short request with some basic details about you, your income and how much you need. We review your details and look for a lender in our network that operates in your state and fits your profile. Many people see a decision within minutes.

You finish the lender's verification steps and sign its loan agreement, which spells out the repayment amount, the fee and the due date. Funds go to your checking account, often the same or next business day. From then on, you deal directly with your lender. Before you sign, it's worth a quick look at the most common loan application mistakes.

Covero isn't available in every state, not every request is approved, and the lender may run its own credit check before funding. There's no cost to use Covero and no obligation to accept any offer.

When you're ready, you can start your request in a few minutes.