Direct deposit loans: 5 alternative loans with fast funding times

Written by

Denny Ceizyk,

Edited by

Rhys Subitch,

Reviewed by

Thomas Brock, CFA, CPA,

Expert verified

Published on March 17, 2025 | 8 min read

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Key takeaways

Direct deposit loans are a type of loan that gives you quick access to cash that is deposited directly into your bank account.
Personal loans are a better alternative to direct deposit loans, offering lower rates and longer repayment terms.
Other alternatives to direct deposit loans include payday alternative loans, early payday apps, salary advances and cash advances on credit cards.
Carefully consider all direct deposit loan alternatives to choose one that will improve, not worsen, your financial situation.

Direct deposit loans cater to borrowers with past credit issues experiencing financial hardship. These debt products are typically deposited into your bank account the same or next business day, making them a convenient option if you need fast cash.

Still, there are drawbacks to consider. Direct deposit loans often come with very high interest rates, meaning the cost of borrowing is higher than alternatives. So, you should avoid these loans if possible.

Bankrate insight: What is a direct deposit loan?

A direct deposit loan is a type of payday loan that allows you to receive funds directly into your bank account after approval. Lenders typically only need to verify the direct deposit of your paycheck for approval, but annual percentage rates (APRs) can be well over 100 or even 600 percent.

The 5 best alternatives to payday direct deposit loans

1. Personal loans

A personal loan is a direct deposit loan option that typically gives you one to seven years to pay the money you borrow. Bad credit personal loan rates generally cap out at 35.99 percent. That’s far less than the triple-digit rates you’ll pay with a payday loan.

Funds can be directly deposited on the same day you apply with some lenders. You’ll need to borrow at least $1,000 in most cases, so keep that in mind if you decide to get a personal loan.

The Bankrate team has reviewed a number of personal loan lenders, including those with very flexible eligibility requirements and those that offer loan terms of seven years. Keep in mind that the lowest interest rates go to excellent credit borrowers.

Lender	Est. APR	Loan term	Loan amount	Minimum credit score
Upstart	6.70%-35.99%	3 - 5 years	$1,000–$50,000	No Requirement
OneMain Financial	18.00%-35.99%	2 - 5 years	$1,500–$20,000	Not specified
Upgrade	7.99%-35.99% (with autopay)	2 - 7 years	$1,000–$50,000	580
Best Egg	6.99%-35.99%	3 - 5 years	$2,000–$50,000	600
Avant	9.95%-35.99%	2 - 5 years	$2,000–$35,000	550
LendingPoint	7.99%-35.99%	2 - 6 years	$1,000–$36,500	600

2. Payday alternative loans

Borrowers who don’t quite qualify for standard personal loans may have better luck with a payday alternative loan. This type of direct deposit loan still comes with triple-digit APRs, but they’re often less than what you’d pay for a payday loan.

The best part is that repayment terms are typically measured in months, not weeks. This removes the pressure of paying off the loan by your next payday and gives you more time to work out your finances.

These products often don’t require a minimum credit score and are approved based on your income and banking history, much like payday loans. Funds are usually delivered to your bank account within one business day of approval.

Most lenders that offer these types of loans don’t charge prepayment penalties, which means you can pay your high-rate balance off faster without an additional fee. Some of the payday alternative loans Bankrate has reviewed offer loans under $500, which makes them good for smaller emergency costs — especially if you can pay them off ahead of schedule.

Lender	Loan amount range	Est. APR	Loan term
OppLoans	$500–$4,000	160.00%-195.00%	9–18 months
Personify	$500–$15,000	36.00%-179.50%	12–48 months
Rise	$300–$5,000	60.00%-299.00%	4–36 months
Possible Finance	Up to $500	102.04%-265.08%	Up to 8 weeks

3. Early payday apps and salary advances

Salary advances are types of loans that directly deposit part of your paycheck into your account. They typically apply to direct-deposited checks, and you might find them at banks and credit unions. It’s also common for employers to offer them to employees. Interest rates are often variable, and you pay interest on the amount you use. An employer might not charge interest or fees.

If you only need to borrow a small amount, there are also a number of early payday apps you can use. These apps allow you to have a portion of your paycheck direct deposited before your next period, and you pay it back when you get your paycheck.

Some apps even allow you to borrow up to $750 in between paychecks, nearly three times more than the average payday lender allows in some states. But you may be subject to cash delivery or subscription fees.

Pay advance app	Maximum advance per pay period	Advance fees	Monthly subscription cost
EarnIn	$750	$0 for standard Up to $5.99 for instant	$0
Brigit	$250	$0 for standard Unspecified instant fee	$8.99-$14.99
Dave	$500	5% of each amount, up to $15, $5 minimum 1.5% express fee for debit deposit	Up to $5

4. Cash advance on your credit card

You may be able to take a cash advance from the available balance on one of your credit cards. Check the fine print on your credit card disclosures to find out how much your rate will be. It’s typically higher than the rate you pay for normal charges. Plus, interest starts accruing immediately, rather than after a grace period.

While this may be an easy way to get some extra cash, it could knock your credit scores if you don’t pay the balance off before your next billing cycle. Your credit utilization ratio measures how much of your available credit you’re using, and if it exceeds 30 percent it may impact your credit score.

5. Nonprofit, community and government assistance

You may be able to get help paying for the bare essentials like food and utilities through programs offered by local nonprofits or community and local governments. The programs are designed to provide assistance to people in dire financial situations such as a sudden loss of income due to job loss or other emergency situations.

Pros and cons of direct deposit loans and alternatives

Direct deposit loan or alternative	Pros	Cons
Direct deposit loans	You may be approved and receive funds the same day you apply. Approval doesn’t usually require a credit check. Funds are deposited directly to your bank account.	Highest APRs of any loan type. You must repay the entire balance plus fees by your next paycheck. Can lead to costly debt rollovers that increase your debt load.
Payday alternative loans	APRs two to three times lower than payday loans. Longer repayment terms.	Higher APRs than personal loans. Shorter terms than personal loans.
Early payday apps	May not have to pay any fees for regular deposits. Access to more cash between paychecks.	Fees may apply to instant cash needs. Apps may charge monthly subscription fees.
Credit card cash advance	May already be available on existing credit cards. Doesn’t require applying for new credit.	Higher APRs usually apply to cash advances. May drop your credit score if balance isn’t paid off.
Salary advance	Possibly no interest or fees charged if through employer. No new credit.	Employer may not offer.
Nonprofit or government assistance	May offer grants to help with emergencies. Repayment may not be required.	You may not qualify based on income or other criteria. May not be available in your area.

Bankrate insight

Higher inflation often leads people with low wages living paycheck to paycheck to take out payday loans. As the cost of necessities like groceries and gas goes up, consumers may need cash to tide them over until the next pay day. It’s critical to know the alternatives to payday loans to avoid becoming trapped in a debt cycle.

Personal loan vs. direct deposit loan

If you’re still trying to choose between a payday loan or a personal loan, seeing the features side by side may make the decision easier.

Loan feature	Direct deposit payday loan	Bad credit personal loan
Rates	Up to around 650%	Up to 35.99%
Loan amount minimum	$250 standard minimum	$1,000 at most lenders
Loan amount maximum	Up to $500	Up to $100,000
Loan term	On your next payday or two weeks	1 to 7 years
Time to funds	As soon as the same day	As soon as the same day
Credit score	No minimum credit score requirement with most lenders	Credit score typically required, but may be as low as 550

Bottom line

If you need money quickly, direct deposit loans may seem convenient. However, direct deposit payday loans often have high interest rates and short repayment terms on unaffordable debt.

Fortunately, there are better alternatives — such as personal loans — with lower rates and longer repayment terms. You can start by checking personal loan rates.

Consider all your options before you choose any type of financing. Look for assistance from non-profit organizations or government programs if you cannot afford essentials.

Frequently asked questions

Credit card cash advances are usually taken from an ATM. As such, a cash advance is not directly tied into direct deposit. However, be aware that cash advances usually have fees and steep interest rates.
Yes, a direct deposit loan counts as a type of payday loan. You may also get a salary advance, another type of loan offered by banks, credit unions or an employer. You can get some or all of your paycheck early and then pay it back when you get your paycheck, plus interest. You might also consider payday alternative loans, which have lower rates and longer terms than payday loans.