Short-term and small-dollar loans can be a useful bridge in an emergency, but they can also be expensive. At Lending Buddy, we believe the best loan is one you fully understand and can comfortably repay. Here is our commitment — and our advice.
Our commitment
- We never charge borrowers a fee to use Lending Buddy.
- We never promise guaranteed approval or "no credit check" loans.
- We explain APR, fees and total cost in plain English on our rates and fees page.
- We encourage you to decline any offer that doesn't fit your budget.
Before you borrow: a 5-point checklist
- Is it a need, not a want? Use loans for essential, time-sensitive expenses.
- Is the amount the minimum? Borrow only what solves the problem.
- Can you afford the payment? Your budget should cover the payment plus essentials with room to spare.
- Do you know the total cost? Check the APR, finance charge and total of payments.
- Have you checked alternatives? See below.
Alternatives to consider
- A payment plan directly with the hospital, utility or repair shop
- A payday alternative loan (PAL) from a federal credit union
- Employer pay advances or earned wage access
- Local assistance programs (dial 211) and nonprofit credit counseling (NFCC.org)
- Your own emergency fund for the next surprise
Your rights as a borrower
- Truth in Lending Act (TILA): lenders must disclose the APR, finance charge and total of payments before you sign.
- Equal Credit Opportunity Act (ECOA): lenders cannot discriminate based on race, color, religion, national origin, sex, marital status, age, or receipt of public assistance.
- Fair Debt Collection Practices Act (FDCPA): limits abusive collection practices by third-party debt collectors.
- Military Lending Act (MLA): caps the Military APR at 36% for covered active-duty members and dependents.
- Electronic Fund Transfer Act: you can revoke authorization for automatic debits by notifying your lender and bank.
If you're struggling to repay
Call your lender before you miss a payment and ask about extensions or payment plans. Avoid rolling one loan into another. Nonprofit credit counselors can help you build a plan. Our debt consolidation page explains when combining debts helps — and when it doesn't.