Unplanned expenses when you're on a tight budget, can mean needing to borrow money to get by. Payday loans are illegal in New Jersey, but you have other short-term loan options that may help, and at a much lower cost.
Payday loans are illegal in North Carolina. Payday lending has been banned in North Carolina since 2001 under North Carolina General Statutes 53-281 and the North Carolina Consumer Finance Act (N.C. Gen. Stat. 53-173). More recent updates to the law have further closed any potential loopholes, making it nearly impossible for payday lenders to operate in the state.
All lenders in North Carolina must follow the state’s small loan interest cap, which limits APRs to 36% or less.
If you need quick access to cash in North Carolina, you still have options — even though payday loans are off the table. From personal loans to paycheck advances, there are several ways to cover unexpected expenses without turning to risky lenders. Here are a few payday loan alternatives to consider.
A personal loan is a lump sum you repay in fixed installments over time. Unlike payday loans, personal loans typically have lower interest rates, longer repayment terms and more manageable monthly payments. If you don’t need very long to repay the loan, you can find lenders that specialize in offering short-term loans, which could save you money on interest over the life of the loan.
To get a personal loan, you’ll need to meet the lender’s credit and income requirements, which vary by provider. Borrowers with good credit typically qualify for the best rates, but if your credit is less than average, several lenders offer bad credit personal loans.
Cash advance apps give you access to a small portion of cash before payday — without the high fees of a payday loan. Instead of charging interest, most apps make money through optional tips or monthly subscription fees. However, some apps don’t charge a subscription fee at all.
Popular apps like Dave, Brigit and Albert offer advances of up to a few hundred dollars, with repayment automatically deducted from your bank account on your next payday. You’ll typically need a steady income and a linked bank account to qualify.
Some employers offer paycheck advances, letting you access a portion of your earned wages before payday without interest or high fees. These programs are often available through workplace benefits or third-party services like ONE@Work and Payactiv. Unlike cash advance apps, employer advances usually don’t require tips or subscriptions.
Eligibility depends on your employer’s policy, but you’ll typically need direct deposit set up and a history of regular paychecks. Funds are deducted automatically from your next paycheck. If your workplace offers this benefit, it can be one of the most affordable ways to get a short-term loan.
Payday alternative loans (PALs) are small loans offered by federal credit unions as a safer, more affordable alternative to payday loans. These loans typically range from $200 to $1,000, with repayment terms between one to six months. Unlike payday loans, PALs have lower interest rates, capped fees and structured repayment plans to make borrowing more manageable.
To qualify, you must be a credit union member for at least one month before applying. Credit unions set their own eligibility criteria, but most require proof of income and a stable financial history in addition to membership.
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To provide a Score, we compare like-for-like loans. So if you're comparing the best short-term loans for all credit types, you can see how each short-term loan stacks up against other short-term loans with the same borrower type, rate type and repayment type.
North Carolina has a number of programs that can make it easier for you to afford your everyday bills and expenses. Here are a few that may be able to offer assistance:
North Carolina caps loan interest rates at 36% APR, but that doesn’t mean all loans cost the same. Lenders can still charge origination fees, late fees and other costs that add to the total amount you’ll repay.
The length of your loan matters, too. Shorter terms mean higher monthly payments but less interest overall, while longer terms spread payments out but cost more in the long run.
To keep borrowing costs down, shop around for the best rates and borrow only what you need. Before signing a loan agreement, make sure to check the terms carefully so you know exactly how much the loan will cost and whether you can afford the payments.
No. Online payday loans are illegal in North Carolina. Out-of-state lenders are legally barred from providing payday loans to residents of North Carolina — with the exception of tribal lenders.
No, payday loans are completely banned in North Carolina — both in-person and online. If you need to borrow money to cover unexpected expenses, look into payday loan alternatives like short-term personal loans or cash advance apps.
No. Because the terms are often very similar to payday loans and require you to supply a vehicle as collateral, auto title loans are also banned in North Carolina.
If you encounter a predatory lender, you should contact the office of the North Carolina Attorney General or the Commissioner of Banks to make a complaint.
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From pay advance apps to payday loans, you have a few options to choose from.
If you have bad credit and need cash fast, consider Speedy Cash for your next payday or installment loan.
I have been getting threatening calls about a loan from check in go about taking me to court. They are also saying the loan was more then the balance i believe i owned. I also learned that loans are illegal in my state as to the loan i received. The live in NC but got a loan from SC or VA not sure but they not giving me much info on the loan. What do i need to do and how can i resolve the matter.
Hi Ms. Adams,
Thank you for reaching out to Finder.
The first step is to get as much documentation on the loan that this loan company is saying you applied for. Once you have these, reach out to your local police department for them to be aware of this and protect your interest as much as possible. Hope this helps!
Cheers,
Reggie
if i need a loan of 2800$ and my back olny does auto loans for 5000$ and up can i get the loan use the money and return the rest?
Hi Zach,
Thanks for getting in touch with finder. I hope all is well with you. :)
Generally, the interest rate is charged to the total amount you borrowed and not the money you only used. For this reason, you can use the excess of your borrowed money to pay off your balance. However, you will still need to pay the interest that you incurred from the total amount of money you borrowed.
Just in case, you might also want to check our car loans for used cars and car loans for new cars.
I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.
Have a wonderful day!
Cheers,
Joshua
I got a bigpicture loan. I’m reading all the bad stuff about the company now. What happens if I don’t pay them back? I didn’t know it was illegal
Hi Shelly,
Thanks for leaving a question on Finder.
As the lender tries to collect your debt, they continue to try withdrawing from your bank account, using the information you provided. If the money isn’t there, they continue trying, sometime breaking up the loan into smaller parts. This won’t only get you into trouble with the lender, but your bank may also charge you overdraft fees every time your balance is insufficient when the lender attempts to withdraw money.
And this is when the phone calls start. Lenders and collection representatives will use all of the information you provided — phone numbers at your job, email addresses, and even family members or friends — to contact you for payments.
For more information about this matter, check our guide called “What could happen if you don’t pay back your payday loan”.
Cheers,
Joel
How do I apply for a loan?
Hi Tammy,
Thank you for your enquiry.
Please compare your loan options above and click the name of your preferred lender to find out the details and the minimum eligibility of the lender. You may then click the green “Go to Site” button of your preferred lender or loan option to submit your loan application online.
Please ensure that you meet the eligibility criteria and requirements of the loan option or lender and make sure to read the details, as well as the relevant PDS/ T&Cs of the loan option before making a decision and consider whether the product or option is right for you.
Kind regards,
Jason