Alternatives to payday loans in North Carolina

Payday loans are illegal in North Carolina, so if you’re looking for quick cash, you’ll need to explore other options.

While there’s no real set definition of what a payday loan is, in practice, they’re short-term loans with expensive fees and financing terms that can quickly trap people in a cycle of debt. 

If you need money for an emergency expense, these lenders may be good alternatives.

• Best for early access to your paycheck: Earnin
• Best for secured loans: OneMain Financial
• Best for considering more than credit scores: Upgrade
• Best for small online loans: Mariner Finance
• Best for fast funding: Dave
• How do paycheck advance loans work?
• What are alternatives to payday advance loans?

Best for early access to your paycheck: Earnin

Why Earnin stands out: With Earnin, you can borrow up to $150 per day and $1,000 per pay period. But you’ll need a steady pay schedule and income to qualify.

Pros

• No interest or fees — tips are optional
• Fast funding in minutes available for a fee
• Low balance alerts

Cons

• Standard funding takes up to two business days
• Requires a regular paycheck
• Must connect your bank account

Read our full review of Earnin to learn more.

Best for secured loans: OneMain Financial

Why a OneMain Financial personal loan stands out: OneMain Financial offers both unsecured and secured loans between $1,500 and $30,000. If you don’t qualify for an unsecured loan, you can put up your car as collateral if it’s eligible.

Pros

• Can apply in person at a local branch
• Prequalification to check potential rate available
• Fast funding possible

Cons

• High maximum APR
• Charges origination fees
• Restrictions on how you can use the loan proceeds

Read reviews of OneMain Financial personal loans to learn more.

Best for considering more than credit scores: Upgrade

Why an Upgrade personal loan stands out: Upgrade offers personal loans between $1,000 and $50,000, and you may be approved even if you have bad credit. The lender says it will consider factors other than your credit, including your education and employment status.

Pros

• Prequalification to check your rate with no impact to your credit score
• No prepayment penalty
• Rate discount available for autopay

Cons

• Potentially high APR
• Charges origination fee

Read reviews of Upgrade personal loans to learn more.

Best for small online loans: Mariner Finance

Why a Mariner Finance personal loan stands out: Mariner Finance offers personal loans from $1,000 to $25,000. The lender also offers a satisfaction guarantee that lets you cancel your loan and repay it within 15 days of funding without any penalties.

Pros

• Offers unsecured and secured loans
• Can prequalify online
• Accepts co-signers

Cons

• May require in-person closing
• Larger loans may require a car lien
• Not available in all states

Read reviews of Mariner Finance personal loans to learn more.

Best for fast funding: Dave

Why Dave stands out: With Dave, you can get up to $500 within minutes through its ExtraCash feature if you have a Dave checking account. You can also pay a fee to have the money sent to an external debit card within an hour or opt for a free transfer that’s completed within a few days.

Pros

• No interest
• Doesn’t require a credit check
• Budgeting features available

Cons

• May not qualify for higher advance amounts at first
• Monthly membership fee
• Charges extra for fast funding

Read our review of Dave to learn more.

How do paycheck advance loans work?

Paycheck advance loans give you part of your paycheck before your scheduled payday. Some lenders let you borrow up to $1,000 without a credit check. You typically won’t have to pay interest, but you might owe fees for items like optional tips and faster funding times.

To take out a paycheck advance loan through a lender like Earnin, you’ll need to download an app that loans money and connect your bank account. Once you request the advance and are approved, the lender will deposit the funds into your account.

What are the best alternatives to payday advance loans?

You can’t apply for a payday loan in North Carolina to cover an emergency, but here are a few other options you might want to explore.

• Paycheck advance loans: Paycheck advance loans let you access your paycheck early. Usually, you won’t have to pay interest but might be on the hook for other fees. You can typically borrow a small amount ranging from $50 to $1,000.
• Buy-now, pay-later: BNPL loans let you split a purchase into equal installments over a period of a few weeks or months without paying interest. Some online retailers and brick-and-mortar stores offer this option at checkout.
• Payday alternative loans: Administered by some federal credit unions, PALs range from $200 to $1,000. They have much lower fees and APRs than traditional payday loans, but you may have to be a credit member to access them.
• Online loans: Online lenders offer small personal loans. Most of them advertise fast funding and deposit money into your bank account in a few business days once you’re approved.

Our methodology: How we pick the best personal loans

Credit Karma’s editors evaluate the best personal loans by reviewing key features of dozens of popular lenders. Those features fall into three important categories:

• Affordability: We start by checking if a lender’s rates are competitive: are they higher than average or are they lower than many competitors? From there, we analyze if fees — particularly an origination fee — may make your loan more unaffordable. Last, we’ll check if the lender offers rate discounts for items such as automatic payments that may reduce your rate.
• Customer-friendly features: Taking out a personal loan is a big financial commitment, so we prioritize lenders that make things easier for you. For instance, do they offer a wide range of loan amounts for people with different borrowing needs? Do they offer at least several loan terms to give you more flexibility with your monthly payment? And, crucially, can they fund your loan quickly? A lender will also get bonus points for offering direct payments for debt consolidation or other customer-friendly features.
• Transparency: We believe personal loan terms should be easy to find and decipher. Prequalification, which lets you check what rate you may qualify for without a hard credit inquiry, is particularly important. We also check to see if a lender has been recently penalized by regulators.