Many Tennessee residents turn to predatory payday loans as an emergency stopgap when faced with unforeseen circumstances. Other than being marketed as a fast way to get emergency cash, expect 400%+ APRs, ultra-short repayment terms, and the likelihood of entering a vicious cycle of debt that can easily result in interest charges surpassing the principal.

Fortunately, we have much better alternatives for bad credit, fair credit, and poor credit borrowers. Our recommended alternatives offer much lower rates, flexibility with monthly repayments, and extra features focusing on financial literacy like budgeting tools and credit monitoring. These solutions comprise a mix of credit union loans, lending networks, and payday advance apps like FloatMe, which also rely on soft inquiries rather than hard inquiries so that your credit score stays protected.

Keep reading to learn more about the best payday loan for bad credit alternatives in Tennessee, working towards a better financial future for yourself and your family.

Why Trust ElitePersonalFinance Guides?

At ElitePersonalFinance, we aim to provide you with the best payday loan alternatives for bad credit in Tennessee. Outside of the restrictive terms offered by traditional payday loans at those sketchy storefronts (think 590%+ APRs with endless fees), we’re ready and able to provide you with excellent alternatives in the form of 0% interest payday advance apps, credit unions, and Online Lenders Alliance (OLA)-backed lending marketplaces like ZippyLoan and NextDayPersonalLoan.

Today, there’s no need for Tennessee residents second-guess disclaimers, wonder whether you’ll be paying hidden fees, or worry about getting caught by predatory lenders offering supposedly guaranteed approval or discounted rates in exchange for an upfront payment. Now, you can expect full transparency over loan terms, allowing you to rest easy knowing your next unexpected expense will be managed responsibly.

Whether you live in Nashville, Chattanooga, Memphis, Knoxville, Clarksville, or any of the surrounding areas, we have you covered.

Thanks for trusting ElitePersonalFinance!

MoneyMutual

Tennessee residents can look towards MoneyMutual as one of the more trusted marketplaces. This site is suitable for spotting loans from $200 to $5,000 at APRs, typically between 31.99% and 35.99%, along with repayment terms from six to 60 months. Expect easy qualification criteria, connecting bad, poor, and fair credit borrowers with prospective lenders in less than five minutes.

Upon approval, expect funds to be deposited into your bank account in as little as 24 hours.

Over two million customers have used the service. Along with TrustedSite Certified Secure certification and backed by the Online Lenders Alliance (OLA), it’s pretty legit. Overall, MoneyMutual is a highly recommended source of alternative payday loans for bad credit with same-day approval and next-business-day funding.

What We Like:

• Loans from $200 to $5,000
• APRs up to 35.99%
• Quick and easy loan matching process
• Excellent source of emergency cash/no credit check loans
• TrustedSite Certified Secure badge/ member of the Online Lenders Alliance (OLA)

What We Don’t Like:

• No guaranteed approval
• Not a direct lender/terms vary by lender
• Delinquent payments may be reported to Experian, Equifax, and TransUnion
• Personal data may be shared with third parties (lenders & alternative providers)

Eligibility & Next Steps:

• 18 years of age or older
• US citizen or permanent resident
• $800 in minimum monthly income
• Valid checking account, phone number, and email address
• Completed online application through MoneyMutual

ZippyLoan

If you’re looking for a solid online lending marketplace that promises simple and fast personal loans, ZippyLoan fits the bill.

With ZippyLoan, Tennessee residents can borrow between $100 and $15,000 with funds deposited to their bank account as early as the next business day. It offers a simple, intuitive online platform and APRs between 31.99% and 35.99%. Plus, we appreciate its Online Lenders Alliance (OLA) membership. This financial best practices organization advocates for all participating lenders, protecting consumers from predatory APRs and rates.

We highly recommend ZippyLoan’s legit direct lender network and seamless online experience for taking out loans.

What We Like:

• Loans from $100 to $15,000
• APRs between 31.99% and 35.99%
• Funds to your bank account by the next business day
• 256-bit SSL encryption technology for data security
• Member of the Online Lenders Alliance

What We Don’t Like:

• May share data with third parties advertising their own financial products
• No guaranteed approval
• Not all lenders are equally transparent e.g. tribal lenders

Eligibility & Next Steps:

• 18 years of age or older
• US citizen or permanent resident
• $800 in minimum monthly income
• Valid checking account, phone number, and email address
• Completed online application through ZippyLoan

NextDayPersonalLoan

NextDayPersonalLoan makes it easy for poor, bad, and fair credit borrowers in Chattanooga, Nashville, Clarksville and surrounding areas to seek out loans. It offers loans between $100 and $40,000 with a quick three-step online application.

APRs range from 31.99% to 35.99%, with repayment terms up to 60 months. Plus quick cash/emergency cash can be deposited to a bank account before the next business day. Your actual loan cost will depend on several factors, including your state usury laws (caps, etc.), the lender, and whether it’s a tribal lender versus a non-tribal lender that do not have exceptions to run higher APRs in the state of Tennessee.

What We Like:

• Borrow between $100 to $40,000
• APRs between 31.99% and 35.99%
• On-time payment reporting to three major credit reporting bureaus (Experian, Equifax, and TransUnion)
• Easy and intuitive online application
• Member of the Online Lenders Alliance (OLA)

What We Don’t Like:

• Tribal lenders exempt from state laws, including usury caps
• No guaranteed approval on any loan
• Higher than average interest rates
• Higher minimum monthly income requirement than MoneyMutual and ZippyLoans ($1000 vs. $800)

Eligibility & Next Steps:

• 18 years of age or older
• US citizen or permanent resident
• $1000 in minimum monthly income
• Valid checking account, phone number, and email address
• Completed online application through NextDayPersonalLoan

MoneyLion

Aside from MoneyLion’s Instacash Program, which offers cash advances up to $500 (up to $1,000 for RoarMoney customers) at 0% interest, MoneyLion is also an online marketplace where Tennessee residents can explore cash advance offers. For example, as of this writing, it offers opportunities with fellow payday advance apps Earnin (up to $750), Current (up to $750), Empower (up to $300), and MoneyLion’s program up to $1,000.

Note, if you’re looking to explore between these different cash advance services, all but Empower are free, with varying fast transfer fees, meaning you can receive funds the same day. For example, it charges a $3.99 same day transfer fee, and Empower charges anywhere from $1 to $8 depending on the amount borrowed.

Look to MoneyLion’s marketplace to compare multiple cash advance offers for quick paycheck gap coverage.

What We Like:

• MoneyLion’s cash advances up to $500
• 0% interest on no fees
• Higher eligibility (up to $1,000) for RoarMoney customers
• MoneyLion AI evaluation loan offers & answers financial questions

What We Don’t Like:

• Often cluttered homepage (too many options)
• $19.99 per month for Credit Builder Plus
• Direct deposit collecting checking account required

Eligibility & Next Steps:

• 18 years of age or older
• US citizen or permanent resident
• Free MoneyLion membership
• Checking account with a history of recurring direct deposits
• Minimum deposit of $250 within the past 30 days
• Credit Builder Plus membership for higher advance limits

FloatMe

Like Brigit, FloatMe has hit the scene as “your best financial friend,” spotting new eligible members up to $250 before the next paycheck, with first-time approvals from $10 to $50. These amounts significantly less than Earnin, Brigit, and Dave, which offer up to $750 per pay period, so FloatMe is best for minor expenses like covering bank overdrafts, groceries, or avoiding late fees.

Like Brigit, FloatMe works on a monthly subscription model ($4.99 monthly). With over 7 million downloads, including an average 4.8-star rating in the App Store (76.5K + reviews) and an average 4.5-star rating in the Google Play Store (45.3K +), it’s one of our favorite sources for fast cash/emergency cash in Tennessee.

Lastly, it also pairs members with job recommendations, such as Instacart and BrandedSurvey opportunities, allowing them to earn more money.

What We Like:

• Advances from $10 to $50
• Affordable $4.99 a month membership
• Excellent source of emergency cash/fast cash in Tennessee
• Limited tools unlike Brigit (e.g. budgeting and financial calculators)
• Simplified user interface
• Opportunity to learn of side hustles (e.g., Branded Surveys and Instacart)

What We Don’t Like:

• Uninstalling the app does not cancel charges
• Fee structure depends on when a user signs up
• Not liable for errors in the Cash Flow Calendar feature
• Minuscule cash advance amounts ($10 to $50) compared to Earnin, Dave, and Brigit

Eligibility & Next Steps:

• At least 18 years of age or older
• US citizens or permanent resident
• Download the FloatMe app

What are Payday Loans for Bad Credit?

Also referred to as short-term high-interest loans, traditional payday loans at corner stores in Nashville and surrounding areas provide quick and easy cash to borrowers who have difficulty taking out traditional loans. They usually range from $100 to $500 and are repaid by the borrower’s next paycheck or within a few weeks.

Unfortunately, they come with highly restrictive terms, starting with 300% APRs (predatory rate territory), unfair origination and prepayment penalties, and additional fees that can trap borrowers in a vicious debt cycle. Additionally, many state regulations cap interest rates, fees, and other restrictions, which we cover more in-depth in our guide below. Luckily, Tennessee offers several payday loan alternatives with much better terms.

What Are the Best Payday Loan Alternatives If You Have Bad Credit in Tennessee?

If you have bad credit in Tennessee, here are the best payday loan alternatives you should consider:

Credit Card Cash Advances

Many Tennessee residents may not know that they can withdraw money up to a set limit from their credit card. While the interest rate is typically higher than for regular credit card purchases, it’s an excellent way to get emergency cash if you can stomach no grace period with interest accruing from the first day.

For example, Tennessee State Bank cards offer cash advance rates in the 21% range, with a cash advance fee of $10 or 4% of the amount of every advance (whichever is higher). First Horizon Bank and the First National Bank of Middle Tennessee also offer similar terms. Of course, you may also want to consider nationally recognized cards like Chase Sapphire or Discover, which have their own cash advance programs.

However, you typically need a credit score of about 680 to qualify for these cards, making them a better alternative for those who previously had bad credit but managed to improve their score by 100 points or more.

Payday Advance Apps

Apps like Earnin, Brigit, and Dave offer up to $750 per pay period at 0% interest, which is repaid with your next paycheck. The amount they extend depends on your earnings and direct deposit history. These apps are an excellent alternative to payday loans, allowing you to borrow money without getting trapped in a debt cycle.

Lending Networks/Online Lending Marketplaces (e.g., ZippyLoan)

ZippyLoan, MoneyMutual and NextDayPersonalLoan are three OLA-backed networks that connect prospective borrowers with a network of legitimate lenders offering flexible loan amounts, repayment options, and significantly lower APRs than traditional payday lenders. Plus, you can have funds in your account as early as the next business day, making them an excellent source of quick cash for Tennessee residents.

Credit Union Loans

Institutions like Ascend Federal Credit Union and Eastman Credit Union provide excellent personal loan programs with capped 18% APRs and flexible repayment periods. Unlike traditional payday lenders, credit unions focus on nonprofit and member advocacy, offering financial education resources to help keep you out of debt for life.

How to Find The Best Payday Loan Alternatives for Bad Credit in Tennessee

If you want to be able to identify legit lenders and avoid scams quickly, here are several tried and true strategies on how to find the best payday loan alternative for bad credit in Tennessee:

Research State-Specific Regulations

The first step is to read and understand all of Tennessee’s payday loan regulations.Keep in mind that the maximum loan amount is $500 with a maximum 31-day repayment term, along with fees up to 15% of the check’s value. That means you should be charged no more than $30 for a $200 loan.

Additionally, your payday loans should not allow rollovers, which means extensions past the original loan term are not allowed.

Watch the Language

When it comes to trustworthy lenders, talk about the language they use. Terms and repayment schedules should be clearly specified in disclaimers. Specifically, you want to look for a detailed loan agreement that explains all of these things, along with a minimum of two communication methods, such as phone number, email, and physical address.

Website Security

Always ensure that your lender’s website URL uses HTTPS. Scam sites often use HTTP without the ‘s’ or odd domain names like .biz. Additionally, you should look for privacy policies and security disclaimers that explain how your information may be used or shared with third parties.

Consider Credit Unions

One often overlooked way of looking for small dollar loans is via Tennessee-based credit unions like Ascent Federal Credit Union, and Eastman Federal Credit Union, which are excellent sources of payday alternative loans, personal loans with lower rates, and low-rate emergency loans.

Search Online Marketplaces for Personal Loans

All of our recommended online marketplaces offer a minimum of 100 legit direct lenders within its network willing to extend larger loan amounts as high as $40,000 with APRs between 31.99% and 35.99%. However, it’s important to know that Tennessee residents must be realistic about the amount they can borrow, as they typically extend them no more than $1000 or so due to a person’s limited credit history.

Luckily, there’s no shortage of lenders to compare. If none offer more than $1,000, don’t lose hope. Simply continue with prequalification, as they are competing for your business after all.. Each of these offers a different loan amount based on your eligibility.

How do I apply for a cheaper payday loan alternative to bad credit in Tennessee?

To apply for a cheaper payday loan alternative to bad credit in Tennessee, you must adhere to each of your lender’s requirements.

For example, Eastman Credit Union and Ascent Federal Credit Union, which offer personal loans for bad credit/payday alternative loans, require membership, living in a specific area, being employed or member of a participating organization, and deposits as low as a minimum of $5 in a savings account.

Be sure to have all your supporting documentation ready, including a government-issued photo ID, proof of income, bank statements, and proof of residence, such as a utility bill or an agreement.

Online marketplaces like ZippyLoan are relatively straightforward, requiring your personal information to be paired with multiple lenders. Likewise, for payday advance apps like Earnin, which require a direct deposit, set income history of at least two months and download the app before requesting the amount you need before terms acceptance, all within a simple to use interface.

How Do I Qualify for a Cheaper Loan If I Have Bad Credit in Tennessee?

If you have bad credit in Tennessee, qualifying for a cheaper loan is not difficult.

For starters, rather than your credit score, payday advance apps and payday loan for bad credit alternatives from legit online marketplaces like ZippyLoan offer different eligibility criteria, such as income, ability to provide collateral, cash flow, and the number of direct deposits that have hit your account over a set number of months.

Apart from that, be sure to take all the necessary steps to improve your credit score. It’s very important to visit annualcreditreport.com and check your Experian, Equifax, and TransUnion credit reports for errors, keeping an eye on things like incorrect payments or accounts marked as open that should be closed.

Remember to always try to lower your credit utilization ratio as much as possible. Even paying off $200 in debt can help your payday loan for bad credit alternative eligibility skyrocket.

How to Avoid Scams When Searching for a Bad Credit Loan in Tennessee

Fortunately, it’s not that hard to spot bad credit loan scams in Tennessee. From hidden fees buried within the fine print to false APRs, here are four practical tips on how to avoid common Tennessee bad credit loan scams.

No No to Guaranteed Approval

Under no circumstances will legit lenders ever promise guaranteed approval. Your credit, cash flow, amount of direct deposits, and income are all factors. Kudos if you can spot any lender that promises you a loan in exchange for a small upfront processing fee, which is a big no no. Only trust lenders that require income verification.

Look for a Physical Address and License

Remember, all Tennessee-based lenders must be licensed with a physical address. Any number of fake lenders will use PO Boxes, use overseas addresses, or operate without a Tennessee lending license. Be especially wary of any lender with only a contact form and no physical address on their websites.

The surest way to verify Tennessee-based lenders is to check with the Tennessee Department of Financial Institutions (TDFI).

Watch for Unrealistic Loan Terms

Another area to look out for is unrealistic loan terms. Tennessee-based non-legit lenders are known to charge excessive rates, such as triple-digit APRs as high as 700%, as well as encouraged loan flipping, where you’re encouraged to repay your first loan by taking out another one.

For example, you may borrow $2,000 from an online lender, requiring $300 in interest every two weeks for a 6-month repayment term, resulting in $3,600 in interest (nearly double the principal). Never sign on the dotted line without checking the APR, nor should you ever go past 35.99%.

Remember, the higher the APR, the higher the likelihood you will pay more in interest than the actual principal.

Not to mention frequent bi-weekly or monthly repayments that will break the bank.

Per the Consumer Financial Protection Bureau, 35.99% APR is also the maximum affordable rate borrowers should pay. Remember, you also have payday loans for bad credit alternatives from credit unions, personal loans from banks, or even community development financial institutions (CDFIs).

All in all, checking for promises of guaranteed approval, missing physical addresses, non-Tennessee licensing, and unrealistic loan terms are all excellent ways to avoid payday loan scams and payday loans for bad credit alternative scams in Tennessee.

Cash Advances vs. Payday Loans in Tennessee

If you’re short on funds, two popular ways to seek fast cash/emergency cash are cash advances (also referred to as paycheck advances or payroll advances) and payday loans.

However, it’s very important for Tennessee residents to understand the differences between both. They have radically different cost risks and alternatives, as well as impacts on long-term budgeting prospects.

Similarities

Loan Amounts. Both payday loans and cash advances offer small-dollar loans anywhere from $10 (FloatMe) to $500 (although up to $1,000 is possible). Both offer enough to cover some of life’s most urgent expenses, like a past-due utility bill or a traffic ticket you don’t have extra funds for.

Speed of Funding. As long as you meet a daily cutoff in signing the application, you can expect funds to be deposited into your bank account within the same day or by the next business day.

Repayment Terms. Repayment terms between payday loans/paycheck advances and cash advances are similar, and they typically require repayment within two to four weeks. However, payday advance apps like Earnin require that you pay off the entire balance by the next paycheck. It operates differently from credit card cash advances, where payment is due by the end of your monthly billing cycle, with interest accruing immediately. As a result, it’s recommended that you pay off ASAP, unlike a regular credit card.

Differences

APRs. One of the downsides of traditional payday loans is skyrocketing paycheck advance APRs. In Tennessee, payday loans can charge no more than 459% APR, a quick and predatory lending territory. For example, if you borrow a 14-day $300 loan with a 459% APR and a $75 fee, your total repayment will be $375, which is excessive given the short repayment.

Disbursement Process. The disbursement process is also different, with Tennessee payroll advance storefront locations offering cash in your hands, versus cash advance apps like EarnIn, FloatMe, and Brigit, which offer same-day transfers in exchange for a small expediting fee (based on the amount borrowed). Plus, payday loans will be offered at brick-and-mortar locations, whereas cash advances are entirely made at ATMs, banks, or online.

In short, cash advances and payday loans are similar in that they provide fast cash and emergency cash, but we highly recommend that Tennessee residents avoid them altogether due to the potential for high costs, rollovers, predatory lending practices, and devastating financial consequences. Always pay attention to annual percentage rates, repayment terms, fees, and the fine print to ensure you’re on the right track.

Are Payday Loans Alternatives in Tennessee No Credit Check?

In Tennessee, various credit card cash advances, credit union loans, and payday advance apps have varying requirements compared to no-credit-check loans.

Credit card cash advances typically do not run credit checks or use payday advance apps like MoneyLion, Earnin, and Brigit. However, they verify your income and direct deposit history, and advance amounts are offered (repaid with your next check) based on incoming cash. Most credit union loans also require a credit check, although smaller-dollar loans for existing members may occasionally be approved without one.

What is essential to know is that predatory lenders will often mix marketing jargon on no credit check loans with promises of guaranteed approval and lower rates in exchange for upfront fees. There are no- redit check opportunities that are outright scams and should be avoided altogether.

Are Payday Loan Alternatives in Tennessee from Direct Lenders?

Payday loan alternatives in Tennessee can come from direct and non-direct lenders.

For example, Tennessee-based Eastman Credit Union and Ascend Federal Credit Union operate as direct lenders. They administer loan programs from start to finish, requiring membership, a minimum deposit of $5 to savings accounts, and credit checks. Caveat for payday advance apps like MoneyLion and Earnin, which provide cash advances (although not categorized as traditional direct lenders), determining eligibility based on income and direct deposit ability instead.

In turn, non-direct lenders like ZippyLoan and NextDayPersonalLoan are not direct lenders but “loan marketplaces” or intermediaries that work with a network of third-party direct lenders offering loans anywhere from $200 to $40,000 at 31.99% to 35.99% APRs.

Are Payday Loan Alternatives in Tennessee with Fast Same-Day Approval?

Not all payday loan alternatives in Tennessee offer same day approval. For example, credit union loan approvals can take as much as seven days, along with a required minimum deposit of $5 to savings accounts, membership sign-ups, and more.

However, payday advance apps like Earnin and Brigit, which allow you to access a percentage of your wages before your next paycheck at 0% interest, do offer same-day approval and even same-day funding in exchange for a small expediting fee.

In short, look to payday advance app same-day turnarounds on funds, with all other payday loan alternatives by the next business day.

What Are Payday Loan Laws in Tennessee?

To start, payday loans are legal in Tennessee.

However, state usury laws restrict the percentages, max APRs, no limits, and rollovers with special provisions paid for tribal loans in the state.

In Tennessee, lenders can only charge up to 15% of the loan amount (not baked into overall interest). For example, borrowing $425 with 15% fee nets at $75, so an initial postdated check for $500 (including the fee) converts itself to a 460% APR loan.

As for loan limits and terms, the maximum loan amount you can take out is $500 with a 31-day repayment term, where the entire loan has to be repaid in 31 days or less, with no more than three payday loans at any one time (no more than two from a single lending source).

For example, taking out consecutive $150 loans from one lender will require visiting a different lender to take out a third loan.

Lastly, Tennessee law does not allow loan rollovers or renewals within 24 hours of paying off an old one.

Tribal lenders operating in Tennessee, which are affiliated with Native American tribes, have a severance status that allows them to skirt state regulations and charge much higher interest rates than usual. Remember that borrowing from unlicensed tribal lenders makes the loan non-collectible and not enforceable.

A Word on the Tennessee Department of Financial Institutions (TDFI)

The Tennessee Department of Financial Institutions (TDFI) regulates all state payday loan operators. Feel free to file a complaint if you’ve been subject to predatory practices such as guarantees of lower rates for upfront fees, lack of licensing, etc. From there, they’ll see if any state laws are broken.

Tennessee Department of Financial Institutions

312 Rosa L. Parks Avenue, 26th Floor, Nashville, TN 37243
(615) 741-2236
TDFI.Contact@tn.gov

Understand Tennessee Lending

When understanding Tennessee lending, it all starts with exploring your available options.

Explore Your Options

Rather than relying on Tennessee payday loans, look to small-dollar loans from Tennessee Credit Union or Eastman Credit Union; Ascend Federal Credit Union, or any number of payday advance apps that offer up to $750 per pay period as well as 0% interest.

Understand Legal Protections and Rights

Secondly, Tennessee residents must understand all of their legal protections and rights, including rights to repayment extensions or alternative payment plans (ability to request payment extensions from payday lenders before due dates), along with keeping the Tennessee Department of Financial Institutions (TDFI) on speed dial if you’re facing incoming harassment and aggressive collections tactics.

Tennessee Financial Literacy Programs

Another area to consider is engaging in ongoing financial literacy programs to boost your knowledge. For example, the University of Tennessee Extension program conducts ongoing workshops and seminars on budgeting, debt management, savings, and the importance of building good credit.

Separately, the Tennessee Department of Commerce & Insurance (“TDCI”) Division of Securities also holds Money Smart Week, a virtual program that offers various courses on family budgeting and more, held by noteworthy instructors from the National Foundation for Credit Counseling, U.S.

Department of Labor, Employee Benefits Security Administration, and more.

Watch Out for Harpeth Financial Services, LLC

According to DebtHammer, Harpeth Financial Services, LLC, has an established reputation for starting with outrageously high APRs and a propensity for outrageous fees, which is not expected (per its most common complaints). As for tribal lenders, keep an eye on Big Picture Loans, LLC, a short-term loan provider backed by the Lac Vieux Desert Band of Lake Superior Chippewa Indians, who are notorious for skirting regulations through various loopholes.

On typical loan balances ranging from $400 to $3,500, APRs can reach as high as 699%, and outrageous four- to 18-month repayment terms can be imposed.

In short, exploring all of your options, understanding your rights, and being mindful of financial literacy programs and the state’s most notorious operators (Harpeth Financial Services, LLC, and Big Picture Loans, LLC) is crucial. Avoid no credit check payday loans and opt for legit Tennessee fast cash/emergency cash alternatives.

How Can I Get Out of The Debt Cycle If I Have a Payday Loan and Bad Credit in Tennessee?

To help Tennessee residents avoid payday loans, it’s essential to be mindful of all state and online resources available. These resources empower you to regain control of your finances without resorting to 380% APRs and inflexible payment terms.

Here are four tips worth following:

Take Advantage of Tennessee’s Financial Assistance Programs

Do not hesitate to take advantage of low-income opportunities available for Tennessee residents, such as the Tennessee Temporary Assistance for Needy Families (TANF) and the Low-Income Energy Assistance Program (LIHEAP).
To qualify for these programs, you must meet income, family size, and asset limit thresholds. In the case of LIHEAP, Tennessee residents must be mindful of application deadlines, typically extended from May through August. We encourage you to visit the Tennessee Housing Development Agency website for more information.

https://thda.org/

Look Into Balance Transfer Credit Cards

A third way to get out of that debt cycle if you’re taking out payday loans with bad credit is to use balance transfer credit cards.

Often, they come with 0% introductory APRs for up to 24 months, allowing you to pay off principal balances without interest. First Tennessee Bank and Regions Bank are highly recommended Tennessee-based banks which offer balance transfer credit cards with charges as high as 12 months.

Just be mindful that regular APRs kick in after the introductory period ends. There’s also a 3% or 5% fee on the amount transferred. If you have multiple high-interest credit cards, consolidating them into a single lower interest rate card is a smart option. Be mindful of all fine print before signing on the dotted line.

Stick to a 50/30/20 Budget

One of our favorite budgeting methods applies the 50/30/20 rule, which states that 50% of your income should go to needs, 30% to wants, and 20% to debt repayment. If you have difficulty following this formula, we recommend adjusting your habits and cutting back on non-essential items like dining out, Netflix, and other entertainment expenses.

If you need additional help creating and sticking to a plan, one highly recommended financial literacy program belongs to the United Way of Greater Nashville, which offers regular financial literacy courses on budgeting, strategically paying off credit cards, and more.

Of these resources, you’ll find the United Way of Greater Nashville more practical. It also offers qualifying Tennessee residents in-person and virtual free tax preparation services. Plus, it’s not a bad place to be, as the Nashville Business Journal awarded it one of the best places to work in 2024.

By taking advantage of state-level assistance programs, locking in balance transfer cards, and sticking to a 50/30/20 budget, you’ll reduce your chances of getting into a deep cycle in Tennessee.

How Can The Government and Other Organizations Help Me If I Can’t Get Approved for a Loan in Tennessee?

If you cannot get approved for a loan in Tennessee, you can take advantage of many government programs and nonprofit organizations.

Tennessee Department of Human Services (TDHS)

One go-to resource for low-income Tennesseans is the Tennessee Department of Human Services (TDHS), which offers financial support to low-income families that have difficulty paying their monthly bills. Programs under their umbrella include the Temporary Assistance for Needy Families (TANF) and Supplemental Nutrition Assistance Program (SNAP), which offer emergency cash and rent benefits, utilities, and child care assistance.

Low-Income Energy Assistance Program (LIHEAP)

Another program to consider is the Low-Income Energy Assistance Program (LIHEAP), a federally funded program that allows low-income households to cover their electric and gas bills. Managed by the U.S. Department of Health and Human Services, it serves as a vital lifeline to low-income Tennesseans who have had difficulty taking out payday loan alternatives for bad credit.

According to program requirements, your household must fall at or below 150% of the federal poverty level threshold (although exceptions apply to seniors and other underbanked populations). For example, the income limit for a family of four is $45,000 per year.

To apply, visit the Tennessee Access website or a local Community Action Agency (CAA) or TDHS office to complete a paper application. In some jurisdictions, you can even apply by phone. All you need is proof of income and proof of residency (e.g., a utility bill) and a recent bill from your heating or cooling company with a valid form of ID. Direct payments are made to the utility company instead of the household.

How to Increase My Credit Score

Did you know that an easy 50 to 100-point bump in your credit score can help you lower your APR by 5% or more?

Here are helpful tips on how to increase your credit score:

Pay Your Bills On Time

Arguably the number one credit scoring tip of all time, 35% of your FICO score is calculated using your payment history. Whether it’s credit cards, mortgages, or utilities, paying off your bills on time every month will help you stay ahead of the curve. To do it, set up automatic payments. Remember that financial management apps like Brigit can help offer small cash advances to cover paycheck gaps and help you pay your bills on time while avoiding late fees.

Just be sure to manage them responsibly!

Reduce Your Credit Card Balances

30% of your FICO score comprises your credit utilization, or the percentage of available credit you have. We recommend keeping it below 30% of your total credit limit. Try to pay off as much as you can every month.

A quick tip is to leverage a credit union loan at a rate of 18% to consolidate and pay off credit card debt with personal loans. You may even decide to use balance transfer cards. Key Tennessee-based banks worth considering are BankTennessee and Eastman Credit Union (ECU), which offer 0% interest up to 12 months and 1% cash back opportunities on purchases. After that, you should expect variable APRs in the 17.25% and 21% range.

Note: MoneyMutual and ZippyLoan will not necessarily help with debt consolidation as they offer higher-than-average APRs in the 31% to 35.99% range.

Use Debt Management Tools

One of the best ways to stay on top of payday loans and other credit card debt is to leverage debt payoff management tools like Tally. These automated debt management apps allow you to set up automatic payments, take advantage of low-interest lines of credit, and use AI to qualify for loans based on eligibility criteria outside of credit scores, such as education and work history.

For example, Upstart offers loans for $1,000 to $50,000 with 36 or 60-month repayment terms, with funds received as soon as the next business day. Rather than relying on credit score, they consider hundreds of factors, including incoming cash flow and education, to determine eligibility, qualifying you for much lower rates.

Monitor Your Credit

One of the best ways to stay on top of your credit score is by checking to see that there are no errors in the first place. Visit annualcreditreport.com and pull your credit report from the three major credit bureaus. You may also rely on services like Credit Karma and Experian to receive free monthly reporting.

Seek Financial Counseling Services in Tennessee

One often under-the-radar method of improving your credit score is by seeking help from financial counseling services. There’s no shortage of free or low-cost programs available in Tennessee.

For example, Nashville’s Financial Empowerment Center (FEC) works with the United Way of Greater Nashville to provide budgeting assistance and ongoing education about improving credit scores and keeping your debt down. We’re also big fans of the Operation HOPE Inside Program in Memphis and Chattanooga, which offers credit counseling services.

If you’re looking to the outer regions, consider Apprisen, an online service that does a comprehensive analysis of your monthly budgeting with a personalized step-by-step summary. In conjunction with a financial specialist, you’ll be able to work towards a solid debt management plan while increasing your credit score at the same time.

Boosting your credit score does not necessarily mean just making all of your payments on time. Sometimes, lowering your credit utilization ratio or diversifying your credit mix in Tennessee can help. Whether you’re taking out payday loans for bad credit alternatives or getting out of a vicious debt cycle, every Tennessee resident can benefit from ongoing financial counseling and seeking outside help to perfect money management habits in the months and years to come.

How We Picked These Lenders?

If you’re struggling with bad credit, all of our recommendations offer excellent payday loans for bad credit alternatives with much lower interest rates, flexible repayment terms, transparent fees, clear disclaimers, and more.

Lower Interest Rates and Flexible Repayment Terms

All of our recommended options come with a combination 0% interest, capped 18% APRs (credit union loans), or 31.99% to 35.99% APR opportunities from lending networks like MoneyMutual and NextDayPersonalLoan.

In addition, online borrowers avoid rigid repayment deadlines by seeking flexible repayment terms, ranging from a single month to 60 months, giving them more time to repay without incurring any extra fees.

Customer Support and Reputation

All of our recommended payday loan for bad credit alternatives have favorable reviews. For example, on Google Play, the MoneyLion app has a rating of 4.7 out of 5 stars, except for MoneyMutual, which sometimes has mixed feedback. FloatMe has had over 7 million downloads with an average 4.8 stars rating in the Apple Store (more than 73,000 reviews) and an average 4.5-star rating across more than 45,000 reviews in the Google Play Store.

Always weigh positive and negative feedback before deciding on your next loan for a bad credit alternative.

Extra Features

Except for MoneyMutual, ZippyLoan, and NextDayPersonalLoan, our recommendations have extras built into services.

For example, in addition to $10 to $50 advances, FloatMe offers overdrafts and Plaid for secure banking connections. It also provides a cash flow calendar and a side gig to allow you to discover extra work opportunities, all for a monthly payment of $4.99.

Keep Fees at Bay

All of our recommended lenders disclose all of their fees upfront. Most charge no origination fees (deducted from loan amounts before funds are dispersed) and no prepayment penalties that penalize borrowers for getting ahead of schedule.

The only things you should pay are late fees, insufficient funds fees assessed by your bank, and interest accrued over the life of the loan. Remember that traditional payday loans may charge flat fees that balloon APR to over 400%, even with a single missed payment. Always look to lenders with generous grace periods and no or minor late fees, like Earnin, which does not charge penalties but adjusts future withdrawal limits based on your borrowing behavior.

Speed of Funding and Deposit Methods

Another factor to consider when choosing these lenders is the ability to deposit funds into a valid checking account quickly. All offer same-day (e.g., FloatMe) or next-day funding (MoneyMutual, ZippyLoans, and NextDay PersonalLoans).

For example, you may want to be spotted for a quick $100 for an automotive repair. In that case, you could apply for a FloatMe cash advance and receive the money within minutes, comparable to traditional payday loan storefront locations.

In turn, traditional payday loans typically have locations allowing for in-store cash pickup. In contrast, payday advance apps like FloatMe send funds directly to your account, free with standard processing or for a small same-day fee. Always be mindful of weekend versus holiday availability, one area where payday advances can shine, as Saturdays and Sundays are not off the table.

In short, we considered all of the above factors to ensure that our readers are not caught up in predatory lending practices while securing the emergency cash they need to pay off that unexpected expense.

FAQ

What do I do if I am the victim of an illegal payday loan in Tennessee?

Suppose you’re the victim of an illegal payday loan in Tennessee. In that case, do not hesitate to contact the Tennessee Department of Financial Institutions (DFI), which is responsible for investigating all predatory lenders in the state.

You may also seek outside counsel to sue any payday lender that violates state regulations. Always keep all supporting documentation, including loan agreements and payment history, handy.

Can I get a payday loan with a 500 credit score in Tennessee?

Getting a payday loan with a 500 credit score in Tennessee is possible. Remember, payday loans do not typically run credit checks. Instead, they base eligibility on your income and direct deposit collecting history. Note that payday loans come with very high APR and inflexible repayment terms. Rarely is it a good choice, even if you’re looking to cover a paycheck gap.

Can I get $2,000 if I have low credit in Tennessee?

Yes, getting a $2,000 loan may be possible even with low credit in Tennessee. It all depends on the type of loan and lender you’re using. Some lenders specialize in offering loans to individuals with low credit, including payday lenders, personal loans from bad credit providers, and credit unions. However, we recommend that you review the loan fine print, including interest rates and fees, to ensure that your monthly budgeting is manageable.

Can I get a credit card with bad credit in Tennessee?

Yes, getting a credit card with bad credit in Tennessee is possible. However, you shouldn’t expect to have many options. Consider secured credit cards using deposits as collateral or subprimeissuers with higher-than-average interest rates and fees.

What is the average credit score in Tennessee?

According to a report from Think Tennessee, the average credit score in the state is 702, which ranks 39th in the nation. Other vital stats include a bankruptcy rate of 2.44 for every 100,000 people and an average medical debt of $2,263.

What is the average loan debt in Tennessee?

Here are the different types of average loan debt by type in Tennessee, according to various sources.

According to AOL.com, Tennessee’s average student loan debt rose to $38,378, up from $2,269 in the 4th quarter of 2023. Regarding household debt, the average household debt is $51,160, which is much lower than the $59,580 national average. Unfortunately, Tennessee also has a higher percentage of debt in collections at 32% compared to the 26% national average.

Conclusion

In short, there’s no shortage of payday loan alternatives in Tennessee. Look for ones that offer excellent APR ranges up to 35.99%, with flexible repayment terms and benefits that extend far beyond simply providing you with the fast cash you need to meet that unexpected expense. Whether it’s MoneyMutual, FloatMe, or one of Tennessee’s many government assistance programs, you’ll be on the fast track to breaking that debt cycle in no time.