When you're $300 short on rent, a car repair, or a medical bill, the cheapest loan may come from a bank you already use. One major bank charges a $15 flat fee to borrow $300 repaid over four months. A typical $300 payday loan can cost $45 for two weeks, according to the CFPB.
At $300, consider whether you can repay it all from one paycheck. If you can’t, an installment loan may be a better fit for your budget.
Can you cover $300 without borrowing?
- Ask for a payment plan. Your landlord, medical provider, or utility company may let you split the bill or move the due date. Medical providers often have payment plans. Ask before the bill is due.
- Check with your employer. Some employers offer early access to earned wages. Ask what it costs and how it’s repaid.
- Get community support. Call 211 or visit 211.org to find local help with rent, utilities, and other basics.
- Ask someone you trust. A friend or family member may lend you part of it without interest. Put the repayment date and terms in writing.
Read more >> How to Get Emergency Money
Where to get a $300 loan
Start with this question: Can you repay $300, plus fees, from your next paycheck? If you can, a cash advance can work. If you can’t, an installment loan spreads the cost over a few months. Bank of America’s $15 fee, for example, works out to four payments of $78.75 instead of $315 at once. A $45 payday fee is due along with the full $300 in about two weeks.
These are example costs, not offers. Your lender sets the actual repayment terms.
What it means: At the maximum $20 fee and a six-month term, a PAL costs about $45, the same as a typical payday fee. But you’d pay it in six payments of about $54 instead of $345 at once. Bank of America and U.S. Bank cost the least in dollars, if you bank there and qualify.
Payment plans and employer advances
A payment plan can cost you nothing, but the company you owe has to agree, so call before the due date. If you’re short on rent, ask your landlord whether you can pay part now and the rest by a set date, and whether a late fee still applies. For a medical bill, ask the provider’s billing office about a payment plan. For a utility bill, ask about splitting the balance or moving the due date.
If your employer offers early access to wages, check your benefits portal or ask HR. Some employers run it through an app that charges for faster delivery. Ask what it costs and how it’s repaid. Repayment often comes straight out of your next paycheck, so it’s a lump-sum option too.
Read more >> What Happens If You Don't Pay Your Medical Bills?
Installment options
If repaying $300 all at once would leave you short again, these options spread the cost over a few months.
Small bank loans
If you already have a checking account, your bank might offer a small-dollar loan. Two large banks do.
Approved funds can arrive within minutes at both banks. If you bank somewhere else, ask whether it offers a small-dollar loan, and what it costs.
Credit union payday alternative loans
Federal credit unions may offer payday alternative loans (PALs), designed as lower-cost alternatives to traditional short-term loans. The National Credit Union Administration (NCUA) caps PAL APRs at 28% and application fees at $20.
Borrowing $300 at 28% APR over six months costs about $25 in interest, or about $45 with a $20 application fee. That’s about the same as a typical payday fee, but spread over six payments of about $54.
Not every credit union offers PALs. Check with your local credit union about availability and whether you qualify.
Lump-sum options
If you know you can repay $300 from your next paycheck, a cash advance may be worth considering.
Cash advance apps
Cash advance apps let eligible users access money before payday. Many don't charge traditional loan interest, although fees for expedited transfers, subscriptions, or other services can add up.
For example, Grant Cash Advance offers $25 to $500 to eligible customers. There's no interest, but same-day delivery costs $2 to $21, depending on the advance amount.
Some cash advance apps charge monthly subscription fees or ask for optional tips.
Approval and the amount you're offered aren't guaranteed.
Before accepting an advance, check the delivery fee, repayment date, and total amount that will be deducted from your account.
If you’re borrowing to cover basics more than once in a while, the National Foundation for Credit Counseling can connect you with free or low-cost counseling at 800-388-2227.
Payday loans
Payday loans are short-term loans that generally require repayment on your next payday.
The CFPB provides an example of borrowing $300 with a $45 fee, leaving you owing $345 in approximately two weeks. If you can’t repay on time and roll the loan over, the CFPB’s example shows you’d pay another $45 and still owe the original $300. That’s $90 for borrowing $300 for four weeks.
State laws also matter. In California, the check you give a payday lender can’t be more than $300, and the fee can be up to 15%. At the maximum fee, you’d get $255 in cash and owe $300, so a payday loan there can’t get you the full $300. Rules vary by state, so check yours before borrowing.
Read more >> How to Manage Payday Loan Debt
Need a different amount?
How to get a $100 loan • How to get a $200 loan
Bottom line
If you can repay $300 from your next paycheck, a cash advance can work. If you can’t, a small bank loan or credit union PAL spreads the cost over a few months. Ask about a payment plan first, since it can cost nothing.
The cheapest loans on this page go to people a bank already knows. Bank of America and U.S. Bank look at your history with them, like how long you’ve had your account and whether you make regular deposits. Lenders you don’t bank with can’t see that. They see your credit report. Kikoff’s Credit Account reports your on-time payments to Equifax, Experian, and TransUnion, with no credit check to sign up. Plans start at $5 a month.
Frequently Asked Questions
Article Sources
Disclaimer: The information provided in this blog post is meant for informational purposes only and does not constitute financial advice.
