Finding a loan you can actually afford to pay back
When the bills are due and the money isn't there, a loan can look like the only way through. Sometimes it is. But borrowing to cover everyday bills is a last resort rather than a first one, because a loan stacks a new payment on top of the ones you're already struggling with.
So, before you borrow, check whether you qualify for help you don't have to repay - use the NHPB search page to type in what you need and where. If you've looked into those and still need to borrow, the rest of this page points you to the lowest-cost, safest option for your situation, and flags the lenders worth avoiding.
- Watch out for loan scams. If a lender guarantees approval before reviewing your application, asks you to pay money upfront to receive a loan or apply, pressures you to act immediately, or contacts you through unsolicited texts or social media messages, walk away. Legitimate lenders earn money from interest and fees after a loan is made, not from advance payments or application fees. The Federal Trade Commission's guide to advance-fee loan scams at https://consumer.ftc.gov/articles/what-know-about-advance-fee-loans spells out the warning signs and where to report one.
Even if you qualify with the first lender, compare at least two or three offers whenever possible. Look beyond the monthly payment and compare the APR, fees, repayment period, late-payment charges, and whether there is a penalty for paying the loan off early.
Start with the lowest-cost options
For most people the cheapest loan comes from a credit union. They're member-owned nonprofits, so their rates are lower than banks and far much less than online and payday lenders, and they'll often work with borrowers who have lower credit. That makes a loan option from a credit union the first place to look, and that page also covers the small emergency loan many credit unions make as a direct alternative to payday borrowing.
If a low credit score is what's preventing you from borrowing money, the guide to loans for people with low scores or no credit walks through which lenders will often actually work with you and how to borrow while limiting risk and possible lower-interest rates.
If the amount you need is small and you are just facing a very short term hardship, it's worth checking for a loan that may have a 0% APR first. There are some charities, churches, and even some employers offer them and nothing costs less.
If you're considering a payday lender because you have looked into all other options and feel you can't get money from anywhere else, look at the a list of alternatives to a payday loan before you sign anything — there are almost always lower-cost ways to get the same amount of money.
Loans for a specific situation
Some situations call for a particular kind of lender.
If you don't have a checking or savings account, your options are narrower but they exist; see how to get a loan with no bank account, along with the approaches to avoid.
If you want to compare several lenders at once without filling out a dozen separate applications or visiting all their websites, loan-comparison sites let you see prequalified offers side by side using a soft credit check that won't hurt your score. In fact, it is a good idea to compare multiple lenders anytime you want to borrow money - always read the fine print of any offer.
If what you need is a specific purchase rather than cash in hand, there are options other than a traditional loan. Buy now, pay later services let you split the cost of a purchase into smaller payments instead of paying everything upfront.
If your income comes from gig or self-employed work, some lenders weigh that differently than a regular paycheck and you may have few options. See loans for gig and self-employed workers which is focused on people with variable incomes.
For borrowing outside the traditional bank system, marketplace and peer-to-peer lending connects you with online platforms and individual investors instead of a traditional lender.
And for a medical or dental bill specifically, medical loans and financing covers the options built for health care costs. Options include payment plans, provider financing, and medical loans that may have more flexible approval requirements than traditional personal loans.
When it's a true emergency and nothing else fits
If you've worked through the options above and still have to borrow at a higher cost to get through a real emergency, do it carefully: borrow only what the emergency actually requires, make sure you understand the full cost before you agree, and have a plan for paying it back. The page on emergency loans covers the last-resort options and how to use them without making a hard situation worse.
Hear from people who've been there
It can help to see what's worked for others in the same spot. The moderated community forum on loans is a place where readers ask questions, compare lenders, and share what they found — and where you can post your own situation and get answers back.
A loan makes the most sense when it solves a temporary financial problem and you can reasonably afford the monthly payments. Borrowing to cover ongoing living expenses every month is usually a sign that a longer-term solution is needed, such as increasing income, reducing expenses, or getting help with the bills themselves. If you expect to need another loan to repay this one, consider looking for assistance instead. This page is general information, not financial or legal advice. Loan rates, terms, and lender programs change and vary widely, so confirm the current details with any lender before you borrow.
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