Borrowing options

What can you borrow with poor credit?

Start with the lowest-cost rung that can cover the gap. Move down only when an option cannot work.

Start with the first route that works

A lower rung means less cost or less risk.

1 · No new debt

Change the bill or use earned pay

Ask for more time first. Then check money you already earned.

Cost: often $0 or a stated fee

2 · Lower-cost credit

Check a credit union or bank

Compare the APR, fee, and total repayment. Aim below 36%.

Federal credit-union PAL rate: up to 28%

3 · Price the speed

Fee-based or secured cash

Cash apps, payday loans, and title loans trade speed for cost or collateral.

Common payday example: ≈400% APR

Rung may earn money from some provider links. Paid links are labeled, and payment does not control our guidance. See how we make money and our editorial policy.

Compare every option by yearly rate

Putting every price in APR makes the cost easier to compare. The 36% line is the federal cap for covered servicemembers and a common policy benchmark.

Ask the biller · fee-free banking 0%

Credit-union small-dollar loan 28%

Federal military lending cap 36%

Common payday example ≈400%

0%100%200%300%400%

The NCUA caps payday-alternative loans at 28%. The CFPB says $15 per $100 for two weeks is almost 400% APR. Sources: NCUA and CFPB. See the same math on a real $300 gap →

See every borrowing option

Start here: options that cost nothing

Try all three before you borrow a dollar. Two of them close the gap today.

Option	Yearly rate	The catch
Ask the biller to wait	0%	You have to ask. Many run hardship plans they do not advertise.
Earned wage access	Provider fee, if any	It still makes the next payday smaller.
Fee-free banking	0%	Stops the next gap. It does not close today's.

Tier 2 — ordinary credit, under 36%

Slower to get, and far cheaper. This is where to spend a few days if you can.

Option	Yearly rate	The catch
Credit-union payday-alternative loan	Up to 28%	Membership and an application fee may apply.
Personal loan	Quoted APR + fee	Compare total cost, not the payment.

Tier 3 — money priced as a fee

A few dollars, charged over a few days. Annualize it and the rate is not small.

Option	Yearly rate	The catch
Earned wage access, instant	Flat fee, if any	The fee buys speed. It does not add income.
Cash-advance app	Fee, tip, or subscription	Annualize every charge before you accept it.

Last resort: high-cost borrowing

Same-day money can carry a rate far above ordinary credit. Check every lower-cost option first.

Option	Yearly rate	The catch
Overdraft	Fee per transaction	Several small purchases can trigger several fees.
Payday loan	≈400% in a common CFPB example	Due in full on payday. Renewal can repeat the fee.
Title loan	High-cost secured credit	Miss a payment and you can lose your car.
Lease-to-own	Total of all scheduled payments	The weekly price can hide the total.

⚠ The catch

The pattern that costs the most is borrowing next month's money to cover this month, over and over. Each round starts the next one short.

If you have done that three pay periods running, no tier on this page fixes it. The budget underneath does. Start with no-cost credit counseling.

✓ Borrow only if

It is a one-time gap with a known cause.
You have a plan to repay it in full, on schedule.
You tried every option in the tier below first.

✕ Stop and get help if

You would borrow to repay borrowing.
It happens every month, for essentials.
High-cost borrowing is the only option left. That means the monthly shortfall needs attention.