What is Lendly and How Does It Work?

Lendly is a specialized lender of small installment loans with automatic payroll deduction payments. The platform subjects employers to select loans between $1,000-$2,000, and then repayments are automatically deducted from the paychecks. This type of payroll deduction loans model has a favorable impact on employers by allowing them to provide employees with financial wellness opportunities and workers who need short-term access to capital.

The main advantages of Lendly are the simplified application for the employees of the partner companies, soft-pull pre-qualification, and the practicality of repayment with autopayments in installments through the payroll. Nonetheless, these benefits are accompanied by great disadvantages that cause many borrowers to pursue alternatives.

The drawbacks of Lendly involve high APR rates that can rise as high as 299%, which makes it one of the pricier borrowing options in the lot. Lending Club is only available in a limited number of states, which restricts access to a significant portion of the potential borrower population. The strict system of payroll deductions also lacks flexibility to allow changes in jobs as well as repayment depending on the borrowers’ wishes. The reviews of Lendly tend to point out these issues and especially the expensive interest rates charged and the rigidity of such payroll deduction loans.

Why Look for Loans Like Lendly?

There are a number of strong incentives that make borrowers seek alternatives to Lendly. The biggest motivation is insufficient state coverage because Lendly is not offered everywhere in the country, and this deprives millions of the possibility of using its services.

The high APR rates are a great factor of concern, as the costs may render repayment a problem for those in need of financial assistance. The user is also aggravated by a lack of flexibility as repayment is concerned; the user would like to have the ability to control the payment schedule, compared to the exclusivity of automatic payroll deduction.

Employment-based exemptions are also an added hurdle because individuals who do not have access to the payroll systems of partner companies are not able to receive loans with Lendly. The limitation affects freelancers, self-employed, and employees of non-partner companies who need alternative lending solutions.

Best Alternatives to Lendly Loans

CreditCube

CreditCube is a direct lender, installment loans provider that offers easy credit loans with a range of between 500-5000 with an APR starting around 99%. Contrary to Lendly, which limits the payroll repayment to five months, CreditCube offers more repayment options of 6 to 24 months to allow the borrowers to manage their financial responsibilities.

The platform is available across several states, and in case of approved applications submitted early in the day, funds can be available on the same day. Prequalification is a softer form of credit check, as CreditCube uses soft pulls during prequalification, meaning that lenders do not affect the credit score of their borrowers. This quick capital personal loan scheme can better suit a person with an average to good credit rating and seeking medium-term financial solutions.

Pros: Direct lender transparency, flexible repayment terms, competitive APRs for qualified borrowers, quick funding 

Cons: Credit requirements may exclude some borrowers, not available in all states

OppLoans

OppLoans specializes in installment loans to persons with less than perfect credit, with loan amounts again between 500 and 4,000 dollars, but with slightly lower APRs upto 160 percent Again, these might still be prohibitive, but they are less high than those charged by Lendly, and with more flexibility in repayment, that does not involve payroll deduction.

The platform operates in select states and typically funds loans within one business day of approval. OppLoans uses alternative credit scoring methods, making it accessible to borrowers who might not qualify for traditional personal loans. The lender reports payment history to credit bureaus, potentially helping borrowers build credit with responsible repayment.

Pros: Accessible to bad credit borrowers, credit building opportunities, flexible repayment

Cons: Still high APRs, limited state availability, smaller loan amounts

LendingPoint

LendingPoint targets borrowers with fair credit scores (600+), offering personal loans from $1,000 to $36,500 with APRs ranging from 7.99% to 35.99%. This represents a significant improvement over Lendly's rates for qualified borrowers, with funding typically available within 1-2 business days.

The platform provides prequalification with soft credit checks and operates nationwide except in a few states. LendingPoint's loans work well for debt consolidation, home improvements, or larger financial needs that exceed Lendly's limited loan amounts. The longer repayment terms (24-72 months) help keep monthly payments manageable.

Pros: Much lower APRs for qualified borrowers, larger loan amounts, nationwide availability 

Cons: Credit score requirements may exclude some borrowers, longer approval process

Upgrade

Upgrade offers personal loans from $1,000 to $50,000 with APRs from 8.49% to 35.97%, making it an excellent alternative for borrowers seeking larger amounts or better rates than Lendly provides. The platform combines personal loans with credit monitoring tools, helping borrowers improve their financial health over time. Remember that actual APRs/amounts depend on credit.

Funding typically occurs within one business day, and Upgrade operates in most states. The platform offers both debt consolidation loans and general-purpose personal loans with fixed rates and predictable monthly payments. Upgrade's educational resources and credit monitoring make it particularly valuable for borrowers working to improve their financial situation.

Pros: Low APRs for qualified borrowers, large loan amounts, financial education tools 

Cons: Higher credit requirements, may be overkill for small loan needs

Possible Finance

Possible Finance focuses on small-dollar loans ranging from $50 to $500 initially, with the ability to increase limits over time. APRs start around 150%, vary according to state, and the mobile-first platform provides instant decisions and same-day funding. Unlike Lendly's inflexible structure, Possible allows borrowers to extend payment dates when needed.

The app-based lender operates in select states and reports payment activity to credit bureaus, helping borrowers build credit history. Possible's innovative approach includes financial coaching and the ability to graduate to larger loan amounts and better rates based on repayment history.

Pros: Mobile convenience, credit building features, payment flexibility 

Cons: Limited initial loan amounts, restricted state availability, still high APRs

NetCredit

NetCredit provides installment loans from $1,000 to $10,000 with APRs ranging from 34% to 155%, depending on creditworthiness and state regulations. The platform offers more flexible qualification criteria than traditional lenders while maintaining more reasonable rates than many payday loan alternatives.

Funding typically occurs within one business day, and NetCredit operates in many states with varying loan terms. The lender provides a clear online dashboard for payment management and offers customer support throughout the loan term. NetCredit works well for borrowers needing medium-sized loans with predictable payment schedules.

Pros: Reasonable APRs for qualified borrowers, good customer service, flexible qualification 

Cons: APRs still high for some borrowers, not available nationwide

PayActiv

PayActiv operates differently from traditional loans, providing earned wage advances up to $500 between paychecks. Instead of traditional loan APRs, PayActiv charges flat fees typically ranging from $5 to $5 per advance, making it significantly cheaper than Lendly for small amounts.

The platform requires employer partnership but works with a growing network of companies across various industries. PayActiv provides instant access to earned wages through a mobile app, helping workers avoid overdraft fees and high-cost loans for short-term needs.

Pros: Very low cost compared to loans, instant access, no debt creation 

Cons: Requires employer participation, limited to earned wages, small amounts only

Earnin

Earnin allows users to access up to $100-$750 per day of earned wages before payday, operating on a tip-based model rather than traditional loan structures. Users can "tip" what they think is fair, making it one of the most affordable alternatives to expensive loans like Lendly.

The app connects to users' bank accounts and work schedules to verify earned wages, providing advances without credit checks or mandatory fees. Earnin works best for covering small, short-term expenses until the next paycheck arrives.

Pros: No mandatory fees, no credit checks, instant access 

Cons: Limited to earned wages, requires bank account linking, relies on tips

What to Watch Out For With Lendly Alternatives

While exploring Lendly alternatives, borrowers must remain vigilant about high-cost lending traps that can worsen financial situations. Many alternative lenders operate with APRs exceeding 100%, making them expensive options that should only be considered for an emergency when no other alternatives exist.

Rent-a-bank and tribal lending arrangements present particular risks, as these structures may circumvent state interest rate caps and consumer protections. These lenders often operate with minimal regulatory oversight, potentially leaving borrowers with fewer recourse options if disputes arise.

State regulations vary significantly regarding maximum loan amounts, APR caps, and consumer protections. Before accepting any loan, verify that the lender operates legally in your state and complies with local regulations. Some online lenders may offer loans in states where they lack proper licensing.

Responsible borrowing practices remain crucial regardless of the lender chosen. Borrow only what you can realistically repay, compare multiple options before deciding, and consider whether addressing underlying budget issues might provide better long-term solutions than additional debt. Many borrowers benefit from exploring credit counseling services or emergency assistance programs before committing to high-cost loans.

FAQs About Loans Like Lendly

Is Lendly a payday loan? No, Lendly offers installment loans with longer repayment terms than traditional payday loans. However, the high APRs and payroll deduction structure share some characteristics with payday lending.

How fast does Lendly fund loans? Lendly typically funds approved loans within 1-2 business days, though timing depends on bank processing and approval speed.

Can I get a loan like Lendly without payroll deduction? Yes, many alternatives offer traditional installment loans with flexible repayment options including bank transfers, check payments, or automatic deductions you control.

What credit score do I need for Lendly alternatives? Credit requirements vary widely. Some lenders like LendingPoint prefer scores above 600, while others like OppLoans work with lower scores. PayActiv and Earnin don't require credit checks.

Are Lendly loans available in all states? No, Lendly operates in limited states. Many alternatives offer broader geographic availability or nationwide access.

What are safer options than Lendly loans? Credit union loans, personal loans from banks, and employer-sponsored emergency funds typically offer lower rates and better terms than high-cost alternatives like Lendly.

Final Thoughts

Finding the right alternative to Lendly depends on your specific financial situation, credit profile, and borrowing needs. For borrowers with fair to good credit, traditional personal loan providers like LendingPoint and Upgrade offer significantly better rates and terms. Those with credit challenges might find OppLoans or NetCredit more accessible, while workers seeking small amounts between paychecks may benefit from wage advance apps like PayActiv or Earnin.

Remember that high-cost loans should be a last resort after exploring credit unions, family assistance, employer programs, or community resources. When borrowing is necessary, choose lenders with transparent terms, reasonable APRs, and flexible repayment options that match your financial capabilities.

Ready to explore better borrowing options? Check your eligibility with CreditCube today to discover competitive rates and flexible terms that put you in control of your financial future.