Some businesses earn money from people who are new, in a hurry, or without a bank account. Know their cost before you need cash.
A small, short loan, often due on your next payday. You give the lender a check or access to your bank account.
A typical fee is about $15 for every $100 borrowed for two weeks. That equals an APR of almost 400%.
If you cannot repay, you "roll over" the loan and pay the fee again.
Title loans use your car as security. If you do not pay, they can take the car.
Better options: a small loan from a credit union (some offer short "payday alternative loans"), asking your employer for an advance, or a payment plan with the company you owe.
They cash your paycheck for a fee, often a percentage of the check. If you are paid every two weeks, this costs a lot over a year. A bank or credit union account is usually free, and direct deposit puts your pay in the account automatically.
You "rent" a TV, sofa or phone by the week and own it after many payments. In total you can pay much more than the store price. If you miss a payment, they take it back and you lose what you paid.
Better options: buy used (thrift stores, Facebook Marketplace), or save for a few weeks.
Buy now, pay later (BNPL)
At checkout, apps like Klarna, Affirm or Afterpay split the price into payments, often 4 payments over 6 weeks.
Usually no interest if you pay on time. Longer plans can charge interest.
Late fees apply, and missed payments can go to collections (a company that chases unpaid debt) and hurt your credit.
Many small plans at once are easy to lose track of.
Returns and disputes can be harder than with a credit card.
Anyone who asks for a fee before giving you a loan.
"Guaranteed approval, no credit check."
A contract in English you do not understand. Ask for it in your language or take it home to read.
Using a payday loan to pay another payday loan.
Paying for "credit repair" or "debt relief" companies that charge before they do anything.