If you’re looking for the cheapest and fastest ways to borrow money but don’t qualify for allotment loans, these loans like BMG Money are right up your financial alley.
BMG Money works with federal and private employers to provide fast allotment loans for employees at more favorable terms than many other loan options. It offers loan amounts from $500 to $10,000 and terms of six to 36 months for federal employees or $500 to $12,000 for private workers with loan terms between six and 48 months.
Both types of employees are eligible for APRs starting at 19.99% and capped at 35.99%. This rate beats most payday loans, which have smaller loan amounts, often charge rates of 400% or more and typically have to be repaid within two weeks. BMG Money also accepts borrowers with bad credit (or no credit!), and there are never any prepayment penalties.
However, because allotment loan repayments are typically deducted straight from your paycheck, you aren’t eligible unless your employer partners with BMG Money. And, while the rates are better than some loans, it still charges interest. So, if you only need to borrow a small amount or are looking for lower rates, consider alternative loans like BMG Money or other options like cash advance apps.
Our 5 top picks for loan options like BMG Money
Alternative for small, no-interest cash advances: EarnIn
Alternative for self-employed or gig workers: Dave
Even if you're eligible for allotment loans like BMG Money through your employer, it may not always be the best choice. For example, if you're just looking for a small loan to get you to your next paycheck — and would rather not pay interest — you may want to consider a cash advance app like EarnIn.
With EarnIn, eligible users can qualify for advances up to $750 per pay period with no interest charges or late fees. In addition, EarnIn doesn't require subscription fees, unlike many other cash advance apps. However, you can only withdraw up to $150 a day, and you must repay the loan on your next payday. EarnIn is available in all states except Connecticut.
EarnIn is not a bank. Access limits are based on your earnings and risk factors. Available in select states. Terms and restrictions apply. Visit EarnIn.com for full details. Expedited transfers available for a fee. Visit Earnin.com for full details.
Pros
No interest or late fees
Advances up to $750 per pay period
No membership required
Cons
Must be repaid on your next pay date
Can only request $150 a day
Must earn at least $320 per payday
Loan amount
Up to $150/day, with a max of $750 between paydays
Loan Term
1 to 4 weeks
Turnaround time
1 to 3 business days or within minutes for a fee starting at $2.99 per transfer
Loan amount
Up to $750
Turnaround time
1 to 3 business days or within minutes for a fee starting at $2.99 per transfer
If you work for yourself or are in the gig economy, you aren't eligible for allotment loans like BMG Money, but you may qualify for cash advances up to $500 with the Dave cash advance app. There are no credit checks like with BMG money and no direct deposit requirement, which sets Dave apart from many cash advance apps and makes it ideal for those with no direct deposit availability. However, if you need your cash immediately, expedited transfer fees could be as high as $25. Dave is available in all states.
If your employer doesn't have allotment loans like BMG Money, consider OneMain Financial, which offers fast turnaround personal loans with similar interest rates — 18% to 35.99% — making it a viable alternative. OneMain Financial also works with bad credit borrowers, and it provides loans between $1,500 and $20,000, with terms ranging from two to five years. However, OneMain may charge an origination fee of up to 10%, and it isn't fully online, meaning you may have to visit a branch office to finalize your loan documents.
Not available in: Alaska, Arkansas, Connecticut, Massachusetts, Rhode Island, Vermont
Not all applicants will be approved. Loan approval and actual loan terms depend on your ability to meet our credit standards (including a responsible credit history, sufficient income after monthly expenses, and availability of collateral). If approved, not all applicants will qualify for larger loan amounts or most favorable loan terms. Larger loan amounts require a first lien on a motor vehicle no more than ten years old, that meets our value requirements, titled in your name with valid insurance. Loan approval and actual loan terms depend on your state of residence and your ability to meet our credit standards (including a responsible credit history, sufficient income after monthly expenses, and availability of collateral). APRs are generally higher on loans not secured by a vehicle. Highly-qualified applicants may be offered higher loan amounts and/or lower APRs than those shown above. OneMain charges origination fees where allowed by law. Depending on the state where you open your loan, the origination fee may be either a flat amount or a percentage of your loan amount. Flat fee amounts vary by state, ranging from $25 to $500. Percentage-based fees vary by state ranging from 1% to 10% of your loan amount subject to certain state limits on the fee amount. Visit omf.com/loanfees for more information. Loan proceeds cannot be used for postsecondary educational expenses as defined by the CFPB’s Regulation Z such as college, university or vocational expense; for any business or commercial purpose; to purchase cryptocurrency assets, securities, derivatives or other speculative investments; or for gambling or illegal purposes.
Borrowers in these states are subject to these minimum loan sizes: Alabama: $2,100. California: $3,000. Georgia: Unless you are a present customer, $3,100 minimum loan amount. North Dakota: $2,000. Ohio: $2,000. Virginia: $2,600.
Borrowers (other than present customers) in these states are subject to these maximum unsecured loan sizes: North Carolina: $7,500. An unsecured loan is a loan which does not require you to provide collateral (such as a motor vehicle) to the lender.
Example Loan: A $6,000 loan with a 24.99% APR that is repayable in 60 monthly installments would have monthly payments of $176.07.
Time to Fund Loans: Funding within one hour after closing through SpeedFunds must be disbursed to a bank-issued debit card. Disbursement by check or ACH may take up to 1-2 business days after loan closing.
Pros
Similar loan amounts and interest rates to BMG Money
Kashable offers allotment loans like BMG Money to employees of federal and private organizations with better rates than some other loan options. Loan amounts are fairly similar between the two companies, though slightly higher with Kashable, ranging from $250 to $20,000. Plus, you might get a better interest rate with Kashable, with its lowest rates starting at 6% for good credit borrowers.
Available in all states
Pros
Higher loan amounts than BMG Money
Potentially better interest rates
No early repayment penalties
Cons
Interest rates as high as 36%
Loans limited to employees of Kashable-affiliated firms
TrueConnect also offers allotment loans like BMG money. However, its small-dollar loans between $1,000 and $5,000 don't require a credit check. By contrast, BMG Money allotment loans require credit checks, although there is no minimum score requirement to qualify. However, if you need a loan from $5,000 to $100,000, TrueConnect requires a credit check, but interest rates start at 3.99%, which is tough to beat. So, if you have good credit and need a bigger loan, see if you qualify for a lower rate than BMG Money offers.
TrueConnect doesn't currently offer allotment loans to federal employees — only state and local government and educational employees — so this loan option isn't available if you work for the federal government. TrueConnect allotment loans are available in all states except New Jersey and Rhode Island.
Not available in: New Jersey, Rhode Island
Pros
No credit check for loans under $5,000
Interest rates as low as 3.99%
Higher loan amounts
Cons
Requires credit check for larger loans
Not available for federal employees
Not available in all states
Loan amount
$1,000 to $100,000
APR
Starting at 3.99%
Interest Rate Type
Fixed
Min. credit score
No minimum
Turnaround Time
As soon as the next business day
Maximum Loan Term
7 years
Minimum Loan Term
1 year
APR
Starting at 3.99%
Min. credit score
No minimum
Loan amount
$1,000 to $100,000
How does BMG Money Compare
Allotment loans like BMG Money can be a more affordable lending option for employees who work for companies that offer them. Its loans have interest rates capped at 36%, and loan terms extend for up to three years, which can make payments easier to budget. Plus, repayments are typically deducted from your paycheck, so you never have to worry about missing a payment. BMG Money loans are also suitable for borrowers with bad credit and may even raise your credit score.
However, allotment loans like BMG Money are not available to everyone. Most importantly, you must be employed with a company that works with BMG Money to qualify for an allotment loan. Plus, you must be over 18, meet length of employment requirements and can’t be an active military member. BMG Money also doesn’t accept borrowers who have an open bankruptcy.
Pros
Loans from $500 to $12,000
Loan terms of up to four years
No minimum credit score required
Turnaround time as fast as same day
Cons
Must work for a company that partners with BMG Money
Lacey Stark is a freelance personal finance writer for Finder, specializing
in banking, loans, investing, estate planning, and more. She has 20
years of experience writing and editing for magazines, newspapers, and
online publications. A word nerd from childhood, Lacey officially got her
start reporting on live sporting events and moved on to cover topics
such as construction, technology, and travel before finding her niche in
personal finance. Originally from New England, she received her
bachelor’s degree from the University of Denver and completed a
postgraduate journalism program at Metropolitan State University also
in Denver. She currently lives in Chicagoland with her dog Chunk and
likes to read and play golf. See full bio
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