I Need a Payday Loan Immediately – Your No Credit Options

I Need a Payday Loan Immediately

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While a payday loan can get cash in your hands fast, there are so many fees and restrictions that it is rarely ever worth it. Sure, there is no credit check. Approval is immediate. But a payday loan can send you down a debt spiral and potentially damage your credit. 

The good news is that there are much better alternatives to payday loans. These alternatives don’t require good credit and don’t charge you obscene fees either. 

Products That Are Better Than Payday Loans

Alternatives Compared

Brand NameRewardsCredit CheckPrice
Petal Up to 1.5% cashback + bonus at certain retailersYes – but credit isn’t necessary12.99% APR – 29.49% APR
IndigoNoneYes – but bad credit accepted$0, $59, or $99 annual fee & 24.9% APR
Tomo1% cashbackNoNone

These Products Act Like Payday Loan Companies But Are Cheaper

While a few of these options will require a little bit of pre-planning, all of the payday loan alternatives we present here are an excellent resource for quick cash.

Additionally, while some of these products will perform a credit check, all of them are designed for those with poor credit as approval is based on income. You may not be guaranteed approval, but if you have a dependable income, you have a pretty good shot.

Also Read: Payday Loan Alternatives

Petal

The first payday loan alternative on our list is a rewards-earning unsecured credit card. 

But wait, you probably wonder how you can qualify if you have bad credit. 

Don’t worry; the credit cards offered by Petal are designed for those with bad credit. 

A vital part of the setup process is a pre-approval step. Here, you can enter your basic information and let Petal perform a soft pull on your credit. A soft pull is a credit inquiry that does not impact your credit. 

If you have a low credit score or no score, Petal will also ask you for your bank account information. They then use your history of income and spending habits to determine your Cash Score. This, combined with your credit score, is how they determine if you qualify for their cards. 

If you qualify, you receive a pre-approval offer for one or both cards. If you like the card terms, then you can proceed from pre-approval to the official application. Proceeding will result in a hard pull of your credit, and even though you were pre-approved, approval is not guaranteed.

Also Read: Payday Loans Online, with No Credit Check, and Instant Approval 

If you don’t qualify for pre-approval, you won’t even be able to fill out an application. 

If you are lucky enough to be eligible for both cards, Petal 1 and Petal 2, it’s worth taking a look at the benefits of each before choosing one to apply for. 

Petal 2 offers increased cash back earnings the longer you hold the card responsibly, while Petal 1 only offers cash back at specific retailers. 

Using the Petal credit card can help you cover expenses in an emergency, and since they report to the credit bureaus, it could help you build credit as well.

Try Petal

Indigo

The next payday loan alternative on our list is also an unsecured credit card. But it is one that is a bit more limited when compared to the Petal cards. 

The Indigo card is backed by Mastercard.

Indigo comes with a $300 credit limit, which can never be raised, and you could end up needing to pay an annual fee. Mastercard charges an annual fee based on creditworthiness. Your annual fee could be $0, $59, or $99. 

The APR on this credit card is set at 24.9% for all customers. 

The card will report activity, such as your balance and payment history, to all three credit bureaus. 

You will want to keep a close eye on your credit utilization, though. 

With such a low credit limit, even a small purchase could leave you with a higher than 20% credit utilization rate. Keeping your utilization too high could do more harm than good to your credit score. 

The upside is that this card uses a pre-approval process, much like Petal. You can enter your information, including your income, and Mastercard will do a soft pull of your credit. If you are pre-approved, you can move forward with the application. 

If you are not pre-approved, Mastercard will attempt to match you with other credit cards that you could qualify for. 

While not the best unsecured credit card on the market, the Indigo card can be a decent alternative if you cannot qualify for the other card alternatives.

Try Indigo

Tomo

Tomo is a unique type of credit card. 

During signup, you’ll need to link your checking account. Tomo then uses your income and spending information to determine if you qualify for their card. There is no credit check performed. 

If you qualify for the card, you could get approved for up to a $10,000 credit limit. 

The key difference with the Tomo card, compared to the other credit cards on this list, is their lack of fees. Tomo does not charge a fee of any kind. 

The tradeoff is that you cannot carry a balance for longer than seven days. This is because automatic payments are scheduled each Monday

So if you swipe your Tomo card at the grocery store on Wednesday, the money for the purchase will be automatically drawn out of your linked bank account the following Monday.

This feature, plus the fact that the card reports activity to all three credit bureaus, make this card ideal for building credit. 

But in terms of obtaining emergency cash, the 7-day max limit makes this card worse than a payday loan in terms of repayment.

Try Tomo

Building Your Credit is the Best Long-Term Solution

If you need cash now, you may be tempted to take out a payday loan, title loan, or other type of short-term loan, but doing so will not be good for your bank account. 

Payday loans come with high-interest rates and finance charges, small loan amounts, and short loan terms. All of this together creates the perfect environment for finding yourself in payday loan debt. 

Instead of resorting to payday loans, building up your credit history and improving your credit score are better long-term solutions. 

Why?

Because having good credit will make you look better in the eyes of traditional lenders. This provides greater access to unsecured personal loans and higher rates of loan approval. So, when you require fast cash in the future, you won’t have to resort to payday lending. 

Conclusion

Payday loans are so terrible they are actually banned in many states. 

While payday loans, title loans, and other small loans with horrible repayment terms are often the go-to when you need fast cash, they are not good for your wallet or your credit in the long term. 

Instead of resorting to payday loans, try utilizing different products like our alternatives and work on building your credit so that you have better options in the future for covering unexpected expenses.

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