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Direct Deposit Loans: 10 Alternative Loans with Fast Funding Times

If you need fast access to cash, a personal loan is typically a much less expensive option than a direct deposit loan.

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By Taylor Medine

Written by

Taylor Medine

Writer

Taylor Medine is a Credible authority on personal finance. Her work has been featured on Bankrate, Experian, The Balance, Business Insider, Credit Karma, and more. She’s also the author of The 60-Minute Money Plan, a self-published intro to budgeting guide for people who hate budgeting.

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Edited by Ashley Harrison

Written by

Ashley Harrison

Writer

Ashley Harrison is a Credible authority on personal finance who enjoys helping people become debt-free.

Updated February 28, 2024

Editorial disclosure: Our goal is to give you the tools and confidence you need to improve your finances.

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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 interest rates on these loans can be sky-high.

What are direct deposit loans?

Direct deposit loans are 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.

Learn More: Best Personal Loans

10 alternatives to direct deposit loans for quick cash

There are other options to quickly borrow cash besides direct deposit loans. For example, you might qualify for a personal loan with better terms.

If you’re approved, you could get your loan funds as soon as the same or next business day, depending on the lender.

Here are Credible’s partner lenders that offer fast loan funding:

Advertiser Disclosure
44

Credible rating

Fixed (APR)

9.57% - 35.99%

Loan Amounts

$1000 to $40000

Min. Credit Score

660

Check Rates

on Credible’s website

View Details

3.93.9

Credible rating

Fixed (APR)

18.00% - 35.99%

Loan Amounts

$1500 to $20000

Min. Credit Score

540

Check Rates

on Credible’s website

View Details

4.64.6

Credible rating

Fixed (APR)

8.49% - 17.99%

Loan Amounts

$600 to $50000

Min. Credit Score

760

Check Rates

on Credible’s website

View Details

4.34.3

Credible rating

Fixed (APR)

11.69% - 35.99%

Loan Amounts

$1000 to $50000

Min. Credit Score

560

Check Rates

on Credible’s website

View Details

4.54.5

Credible rating

Fixed (APR)

8.49% - 35.99%

Loan Amounts

$1000 to $50000

Min. Credit Score

600

Check Rates

on Credible’s website

View Details

3.93.9

Credible rating

Fixed (APR)

7.80% - 35.99%

Loan Amounts

$1000 to $50000

Min. Credit Score

620

Check Rates

on Credible’s website

View Details

All APRs reflect autopay and loyalty discounts where available | LightStream disclosure | SoFi Disclosures | Read more about Rates and Terms

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.

Check Out: Best Personal Loans for Fair Credit

Compare Personal Loans

Online 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:

Direct deposit loan
Personal loan
Rates
Could be up to 400% APR or even higher
Varies
Loan amounts
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)
Loan terms
Usually until your next payday
1 to 7 years (depending on the lender)
Time to fund
Immediate or within a few business days
Typically one week or less (some lenders offer same- or next-day funding)
Credit score
Any
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 5% interest rate and one-year term, you’d pay just $164 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.

Learn More: Best Emergency Loans

How to get an online personal loan

If you’re ready to take out a personal loan, follow these four steps:

  1. 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.
  2. Choose your loan option. After comparing lenders, pick the loan option that best suits your needs.
  3. Fill out the application. You’ll need to complete a full application and submit any required documentation, such as tax returns or pay stubs.
  4. 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.

If you’re struggling to get approved for a personal loan, another option is applying with a cosigner. Not all lenders allow cosigners on personal loans, but some do.

Even if you don’t need a cosigner to qualify, having one could get a lower rate than you’d get on your own.

Check Out: What's a Credit-Builder Loan?

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.

Keep Reading: How to Get a $5,000 Personal Loan Fast

Meet the expert:
Taylor Medine

Taylor Medine is a Credible authority on personal finance. Her work has been featured on Bankrate, Experian, The Balance, Business Insider, Credit Karma, and more. She’s also the author of The 60-Minute Money Plan, a self-published intro to budgeting guide for people who hate budgeting.

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