As the name suggests, direct deposit loans are loans that are directly deposited into your bank account.
However, while loan companies often market direct deposit payday loans as a fast way to get cash in an emergency, the annual percentage rates (APRs) on those loans can be sky-high. Consider a personal loan, instead. It's also a direct-deposit loan (if approved, the lender deposits a lump sum directly into your bank account). Plus, your rate could be much lower than what you'd pay on a short-term payday loan. You could be eligible even if you have bad credit.
Compare personal loan rates
Advertiser DisclosureOverview
Upstart has low APRs and same-day funding, making it a good choice for well-qualified borrowers who need money fast. It also offers loans as low as $1,000, which makes it a good choice if you need a small loan. Plus, it's one of few lenders that doesn't have a minimum credit score requirement (if you apply on the lender's website), so applicants with bad credit or no credit history might be more likely to get approved for a loan with Upstart. Just know that Upstart may charge an origination fee as high as 12%, but good-credit borrowers may not be charged one at all.
Trustpilot gives Upstart 4.9 stars, which is the highest of all lenders we reviewed.
pros
- May fund in 1 business day
- No minimum credit score requirement on lender site
- Low minimum APR
- Trustpilot score of 4.9/5 stars
cons
- May charge a high origination fee
- No discounts offered
Time to get funds
As soon as 1 to 3 business days
Loan uses
Pay off credit cards, consolidate debt, relocate, make a large purchase, and other purposes
Overview
LendingClub is a solid lender for good credit borrowers and some fair credit borrowers that apply directly on its website. It's easy to prequalify with LendingClub, especially if you're uncomfortable providing your Social Security number, as the company doesn't require it at the prequalification stage. (You will need to provide it if you move forward with a full application.)
While prequalification is not a guarantee that you'll be approved for a loan, LendingClub does a better job than most other Credible partner lenders at approving applicants that have successfully prequalified. In other words, you're less likely to have your application declined once you apply (if you've already prequalified). LendingClub may charge an origination fee between 3% and 8%.
pros
- Mobile app
- Low minimum income requirement
- High close rate on loans made through Credible
- Available in all states
cons
- Origination fee
- No discounts
- Funding not as fast as some competitors
Eligibility
Available in all 50 states
Loan uses
Debt consolidation, paying off credit cards
Overview
Upgrade has a suite of features that make it a very attractive lender: competitive interest rates, discounts for direct pay and autopay, as soon as same-day funding, up to seven-year repayment terms, and nationwide availability. Plus, loans are available to fair-credit borrowers, and you don't need to input your Social Security number to prequalify on the website. Upgrade even offers secured personal loans, which is not common among lenders.
However, Upgrade does charge an origination fee of 1.85% to 9.99%. You must have a FICO score of at least 600 and a minimum income of $25,000 annually to qualify.
pros
- Fair credit borrowers eligible
- Autopay and direct pay discounts
- Can fund in as little as 1 business day
- Mobile app
- Secured loans available
cons
- High maximum origination fee
- Cosigners not accepted on home improvement loans
Loan uses
Credit card refinancing, debt consolidation, home improvement, major purchase, other
Overview
Universal Credit offers loan amounts up to $50,000, repayment terms up to seven years, and discounts for direct pay and autopay. Funds are available as soon as the next business day after loan approval.
Note that rates and fees can be relatively high — you may pay an origination fee from 5.25% to 9.99%, and APRs start at 11.69%. If you get a loan with a high interest rate, consider refinancing your personal loan at a lower rate once you've improved your credit score.
pros
- Borrowers with low credit scores considered
- $25,000 annual income requirement
- Autopay and direct pay discounts available
- Can fund in one business day
cons
- High APRs
- Potentially high origination fees
- Not available in Iowa
Time to get funds
As soon as 1 business day after acceptance
Loan uses
Debt consolidation, pay off credit cards, home improvements, unexpected expenses, home and auto repairs, weddings, and other major purchases
Overview
OneMain Financial has multiple options for bad-credit personal loans. There is no minimum credit score required (if you apply directly with OneMain), which means you could get a loan with bad credit (FICO below 580). Plus, cosigners are allowed — a cosigner is someone (ideally, with good credit) who promises to repay the loan if you can't, which can make it easier to qualify or lower your rate. And, secured personal loans are available. You secure a loan with collateral, which may also help you qualify or lower your rate.
Rates are higher than competitors and OneMain charges origination fees as either a flat fee up to $500, or a percentage from 1% to 10% (depending on your state of residence). Note that even if you prequalify for a personal loan with OneMain, getting approved isn't a given.
pros
- Flexible eligibility requirements
- Offers secured options
- Competitive bad-credit loans
- Physical presence
cons
- Availability
- Origination fees
- High starting APR
- Low maximum loan amount
Fees
Origination fee, unsuccessful payment fee, late fee
Eligibility
Must have photo I.D. issued by U.S. federal, state or local government
Time to get funds
As soon as 1 to 2 days after acceptance
Loan use
All except business, and education
Overview
Upstart has low APRs and same-day funding, making it a good choice for well-qualified borrowers who need money fast. It also offers loans as low as $1,000, which makes it a good choice if you need a small loan. Plus, it's one of few lenders that doesn't have a minimum credit score requirement (if you apply on the lender's website), so applicants with bad credit or no credit history might be more likely to get approved for a loan with Upstart. Just know that Upstart may charge an origination fee as high as 12%, but good-credit borrowers may not be charged one at all.
Trustpilot gives Upstart 4.9 stars, which is the highest of all lenders we reviewed.
pros
- May fund in 1 business day
- No minimum credit score requirement on lender site
- Low minimum APR
- Trustpilot score of 4.9/5 stars
cons
- May charge a high origination fee
- No discounts offered
Time to get funds
As soon as 1 to 3 business days
Loan uses
Pay off credit cards, consolidate debt, relocate, make a large purchase, and other purposes
Overview
LendingClub is a solid lender for good credit borrowers and some fair credit borrowers that apply directly on its website. It's easy to prequalify with LendingClub, especially if you're uncomfortable providing your Social Security number, as the company doesn't require it at the prequalification stage. (You will need to provide it if you move forward with a full application.)
While prequalification is not a guarantee that you'll be approved for a loan, LendingClub does a better job than most other Credible partner lenders at approving applicants that have successfully prequalified. In other words, you're less likely to have your application declined once you apply (if you've already prequalified). LendingClub may charge an origination fee between 3% and 8%.
pros
- Mobile app
- Low minimum income requirement
- High close rate on loans made through Credible
- Available in all states
cons
- Origination fee
- No discounts
- Funding not as fast as some competitors
Eligibility
Available in all 50 states
Loan uses
Debt consolidation, paying off credit cards
Overview
Upgrade has a suite of features that make it a very attractive lender: competitive interest rates, discounts for direct pay and autopay, as soon as same-day funding, up to seven-year repayment terms, and nationwide availability. Plus, loans are available to fair-credit borrowers, and you don't need to input your Social Security number to prequalify on the website. Upgrade even offers secured personal loans, which is not common among lenders.
However, Upgrade does charge an origination fee of 1.85% to 9.99%. You must have a FICO score of at least 600 and a minimum income of $25,000 annually to qualify.
pros
- Fair credit borrowers eligible
- Autopay and direct pay discounts
- Can fund in as little as 1 business day
- Mobile app
- Secured loans available
cons
- High maximum origination fee
- Cosigners not accepted on home improvement loans
Loan uses
Credit card refinancing, debt consolidation, home improvement, major purchase, other
Overview
Universal Credit offers loan amounts up to $50,000, repayment terms up to seven years, and discounts for direct pay and autopay. Funds are available as soon as the next business day after loan approval.
Note that rates and fees can be relatively high — you may pay an origination fee from 5.25% to 9.99%, and APRs start at 11.69%. If you get a loan with a high interest rate, consider refinancing your personal loan at a lower rate once you've improved your credit score.
pros
- Borrowers with low credit scores considered
- $25,000 annual income requirement
- Autopay and direct pay discounts available
- Can fund in one business day
cons
- High APRs
- Potentially high origination fees
- Not available in Iowa
Time to get funds
As soon as 1 business day after acceptance
Loan uses
Debt consolidation, pay off credit cards, home improvements, unexpected expenses, home and auto repairs, weddings, and other major purchases
Overview
OneMain Financial has multiple options for bad-credit personal loans. There is no minimum credit score required (if you apply directly with OneMain), which means you could get a loan with bad credit (FICO below 580). Plus, cosigners are allowed — a cosigner is someone (ideally, with good credit) who promises to repay the loan if you can't, which can make it easier to qualify or lower your rate. And, secured personal loans are available. You secure a loan with collateral, which may also help you qualify or lower your rate.
Rates are higher than competitors and OneMain charges origination fees as either a flat fee up to $500, or a percentage from 1% to 10% (depending on your state of residence). Note that even if you prequalify for a personal loan with OneMain, getting approved isn't a given.
pros
- Flexible eligibility requirements
- Offers secured options
- Competitive bad-credit loans
- Physical presence
cons
- Availability
- Origination fees
- High starting APR
- Low maximum loan amount
Fees
Origination fee, unsuccessful payment fee, late fee
Eligibility
Must have photo I.D. issued by U.S. federal, state or local government
Time to get funds
As soon as 1 to 2 days after acceptance
Loan use
All except business, and education
What are direct deposit loans?
Direct deposit loans are often payday loans that are quickly deposited into your bank account. You might be able to get a direct deposit loan online or from a storefront lender, often without a credit check.
Requirements for direct deposit loans vary from lender to lender, but in general, you’ll need to:
- Be 18 years or older
- Have a bank account
- Have pay stubs that show a recurring source of income
- Live in a state where payday loans are legal
Keep in mind: While fast funding through direct deposit might sound appealing, these small loans are notoriously expensive.
Depending on the lender, you might end up paying 400% APR or more on a direct deposit loan.
But there are other options to quickly borrow cash besides payday loans. For example, you might qualify for a personal loan with a much lower APR and for a higher loan amount.
If you’re approved, you could get money as soon as the same or next business day, deposited directly into your account.
Compare: Payday Loan vs. Installment loan
What are the pros and cons of direct deposit loans?
If you’re considering a direct deposit loan, here are some points to keep in mind:
Pros
- Could get approved even with bad credit: In many cases, you only need to be 18 or older and have a job to get a direct deposit loan. This means you could get approved even if you have bad credit.
- Easy application: Applying for a direct deposit loan online might take just a few minutes.
- Fast loan funding: Depending on the lender, you could have your money as soon as the next business day — or even instantly.
Cons
- High rates and fees: It’s not uncommon for direct deposit loans to have APRs of 400% or higher.
- Can borrow only a small amount: Direct deposit loan amounts are generally only a few hundred dollars — typically $500 or less. If you need to borrow more (such as for a car repair or major purchase), this might not be enough.
- Payment could be taken from your account: Unless you opt for a direct deposit installment loan, you’ll typically give the lender a post-dated check or provide authorization for them to debit the funds from your bank account. If the due date rolls around and you don’t have the cash, this could put you in a financial bind.
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Get StartedOnline personal loans vs. direct deposit loans
Both online personal loans and direct deposit loans can come with fast loan funding. However, they each have different loan terms, amounts, and rates, as well as varying eligibility requirements.
Here’s a look at several important features of online personal loans vs. direct deposit loans:
| | |
|---|
| Could be up to 400% APR or even higher | |
| Typically up to $500
(might be able to borrow $1,000 or more with a direct deposit installment loan) | $600 to $100,000
(with Credible partner lenders) |
| Usually until your next payday | 1 to 7 years
(depending on the lender) |
| Immediate or within a few business days | Typically one week or less
(some lenders offer same- or next-day funding) |
| | Usually need good to excellent credit (670 and up), though some lenders offer loans for poor or fair credit |
If you’re looking for next- or same-day loans, be careful — while you can get cash from a direct deposit loan quickly, the high APR could land you in a deeper financial rut.
Here’s what you might expect to pay if you borrow $1,000 with a direct deposit loan vs. a personal loan:
- If you take out a $1,000 direct deposit loan with a 150% interest rate and one-year term, you’d pay a whopping $982 in interest.
- If you take out a $1,000 personal loan with a 30% interest rate and one-year term, you’d pay just $170 in interest.
No matter which type of loan you choose, it’s a good idea to consider how much a loan will cost you over time. You can estimate how much you’ll pay for a loan using our personal loan calculator.
How to get an online personal loan
If you’re ready to take out a personal loan, follow these four steps:
- Shop around and compare lenders. Be sure to compare as many lenders as possible to find the right loan for you. Compare not only rates but also repayment terms and any fees charged by the lender.
- Choose your loan option. After comparing lenders, pick the loan option that best suits your needs.
- Fill out the application. You’ll need to complete a full application and submit any required documentation, such as tax returns or pay stubs.
- Get your funds. If you’re approved, the lender will have you sign for the loan so they can send you the funds. The time to fund for a personal loan is typically a week or less — though some lenders might fund your loan as soon as the same or next business day.
Tip: While you’ll generally need good to excellent credit to qualify for a personal loan, there are some lenders that offer personal loans for bad credit. However, these typically come with higher interest rates compared to the rates given to borrowers with good credit.
Even if you don’t need a cosigner to qualify, having one could get a lower rate than you’d get on your own.
Interest rates and loan amounts by credit score
Borrowers with high credit scores are the most likely to qualify for the lowest interest rates and highest loan amounts. But that doesn’t mean you can’t qualify for a loan with bad or fair credit. Here’s a look at the average rates borrowers with different credit scores got, as well as their median income.
Personal loan interest rates by credit score
| | | |
|---|
Excellent (800 and above) | | | |
| | | |
| | | |
| | | |
| | | |
Disclosure: Based on Credible closed loans data from July 2024 through June 2025. Source: Credible
If you have bad credit, increase your approval odds by improving your credit before you apply, applying with a cosigner, or applying with a joint applicant.
Other alternatives to a direct deposit loan
There are also other options besides personal loans if you need quick cash. Here are a few alternatives to consider:
- Pawn shop loans: These types of loans are available from pawn shops and are secured by a valuable item that you own, such as jewelry or machinery. However, pawn shop loans can also come with extremely high rates and fees. Plus, if you can’t repay the loan, the pawn shop can sell your item.
- Cash advance apps: Apps like Earnin and MoneyLion offer members small, interest-free cash advances. Keep in mind that this type of cash advance might be limited to a few hundred dollars or less.
- Credit cards: A credit card could be a simple way to cover small, recurring expenses. Some credit cards even come with 0% APR introductory offers, which means you won’t have to pay interest if you repay your balance by the time this period ends. However, if you can’t repay the card in time, you could be stuck with some hefty interest charges.
- Loans from friends or family: If you have friends or family willing to lend you the money you need, you might be able to avoid interest charges. However, be sure to stick to the repayment terms you agree upon to avoid any damage to your relationships.
If you decide to take out a personal loan, remember to consider as many lenders as you can to find the right loan for your needs. Credible makes this easy — you can compare your prequalified rates from multiple lenders in two minutes.
Expert editor insight: “Check with your bank for small, same-day loans. Some, like Bank of America and U.S. Bank offer loans up to $500 or $1,000 without a credit check but with very low fees relative to payday loans and even cash advance apps. You'll probably have a few months to pay the money back, making repayment easier to budget for.”
— Meredith Mangan, Senior Personal Loans Editor, Credible
Meet the expert:
Taylor Medine
Taylor Medine is an authority on personal finance. Her work has been featured by Bankrate, USA Today, The Balance, Business Insider, Credit Karma, and MSN.
