If your credit is in the 500s, the offers you see will be expensive. Before you accept one, work down this list — most people have at least two of these available and never check.
1. Negotiate directly with the biller — free
Medical providers, utilities, landlords, and auto shops routinely offer interest-free payment plans. Hospitals maintain financial assistance policies that can wipe out large portions of a bill. This is free money compared to any loan, and it requires one phone call.
2. Credit union PAL — capped at 28% APR
Payday Alternative Loans are federally regulated products offered by federal credit unions: $200-$2,000, one to twelve months, application fee capped at $20, APR capped at 28%. You usually need one month of membership. This is the single best small-dollar product available to poor-credit borrowers.
3. Employer earned-wage access — free to ~$5 per advance
Many employers now offer access to wages already earned before payday, often free or for a small flat fee. Ask HR; it is frequently unadvertised.
4. Share-secured loan — 3%-10% APR
If you have savings you would rather not spend, a credit union will lend against them at a few points over the account rate. It also builds installment history. See secured vs unsecured.
5. Credit card cash advance — 25%-30% APR plus a 3%-5% fee
Expensive and interest starts immediately with no grace period. Still dramatically cheaper than payday lending if you already have available credit.
6. Co-signed personal loan — 10%-20% APR
A co-signer with good credit can cut your rate in half. Both of you are fully liable and both credit files are affected by every payment.
7. Nonprofit credit counseling — usually free intake
An NFCC-affiliated agency can build a debt management plan that lowers card interest rates without new borrowing. Intake counseling is free; ongoing plan fees are typically modest and capped by state.
Where a bad-credit installment loan still fits
When none of the above cover the amount, when you need a fixed payoff date, or when consolidating several high-rate balances at 30% still beats a weighted average of 34%. It is a legitimate product — it just should not be the first thing you reach for.
Whatever you choose, avoid anything above 36% APR and check the scam red flags before sharing your information. See what your profile qualifies for on the comparison page.