When used sparingly, a paycheck advance could get you out of a bind. Even so, they aren’t always the best solution, and you may want to consider these options too:
Credit card cash advance
Some credit cards let you withdraw cash from an ATM. This is called a credit card cash advance. Cash advances can be convenient because you don’t have to apply. If you already have the card, and if the card allows advances, then you qualify.
But you should only get a credit card cash advance if it’s an emergency, or if you have a solid plan to pay your advance off quickly. Credit card cash advances often have higher APRs than emergency personal loans, and the interest starts racking up immediately (unlike a standard charge, where you can avoid the interest if you pay your full balance in time).
Buy now, pay later app
Like paycheck advance apps, buy now, pay later (BNPL) apps aren’t a great long-term solution. They allow you to make retail purchases and then pay them back in installments (usually four).
Like paycheck advance apps, most BNPL apps rely on a soft credit hit to determine your eligibility.
BNPL apps are easy to use, but they can lead to overspending. According to LendingTree’s BNPL tracker, 41% of users have paid late in the last year. Common BNPL payment plans also make you pay at least 25% down on whatever you’re buying.
Personal loan
A small personal loan might be easier to manage than a payday app, but it only makes sense if you need a larger amount of money and more time to pay it off. A personal loan is a lump sum of money which you’ll pay back over time — usually 12 to 60 months, depending on the lender.
This longer repayment period means you won’t have to repay your entire balance on your next payday. But personal loans come with interest. The longer it takes to repay your loan, the more overall interest you’ll pay.
Personal loans are also a better option if you have at least good credit. Bad credit loans do exist, but rates can be high.