Do you need to buy groceries or pay the light bill, but you’re low on cash? In situations like these, you probably wish you could get your paycheck a couple of days early.
The good news: It is possible to access your paycheck a couple of days ahead of schedule. However, depending on the method you choose, there may be additional costs and other drawbacks.
Here’s a breakdown of ways to get your paycheck early, their pros and cons, and what to do if you regularly find yourself coming up short ahead of payday.
Some banks will give you early access to your paycheck if you have direct deposit set up for your checking account. This service, which is sometimes called Early Pay or early direct deposit, is one of the best ways to get early access to your paycheck, since there are no fees or interest charges involved.
Depending on the bank, you can get the funds up to two days ahead of schedule. Keep in mind, however, that your employer is not sending the money earlier than usual — your bank is simply giving you access to those incoming funds sooner. So, the exact timing can shift from paycheck to paycheck depending on when your employer sends payroll instructions.
Read more: How much of your paycheck should you save?
Not to be confused with a payday loan, a paycheck advance or payroll advance is a short-term loan from your employer. You pay these loans back through deductions from your future paychecks, and these loans are usually small. In 2024, the average amount borrowed by employees was $106 per payroll advance, according to the CFPB.
Payroll advance loans aren’t available from all employers. If your job does offer them, it’s a safer option than using a payday loan, since your employer can only charge you enough to cover their fees for processing the loan.
With that said, the timeframe to pay the loans back is short, so the seemingly low charges can be equivalent to having APR between 109% and 580%. By comparison, the average APR on personal loans is currently 11.14%. Further, people who use these loans often become dependent on them, sometimes taking out dozens of payroll advances each year.
To find out if your employer offers payroll advances, check your employee handbook or reach out to your HR or payroll department for the information.
Read more: How to make the most of a 3-paycheck month
Payday loans are high-risk loans, often for $500 or less, that you pay back through an automatic debit from your bank account on or before your next pay period. You can apply for these loans through payday advance apps or with companies that offer payday advances.
Payday loans can seem deceptively affordable. If you get them through payday advance apps, there aren’t usually interest charges listed. And while you will typically have to pay several fees for each transaction, each separate fee or charge is usually under $10, or is a flat fee of just 5%.
However, given that you usually have a couple of weeks or less to repay the loans, the fees can actually be equivalent to paying anywhere from 400% to 800% APR. Also, keep in mind that most of these services give you access to your pay just one to two business days early. For faster speeds, you’ll have to pay extra.
For those reasons, payday loans should be avoided unless you’re facing a real emergency, such as needing money for prescription medicine, and you don’t have another way to come up with the money. Also, note that payday advances are so risky that they’re banned in some states.
If you regularly need access to your paycheck before your scheduled payday, it’s a sign that you’re in financial trouble.
The real problem could be caused by a combination of factors, including low income, high living expenses, and/or overspending. How do you break the paycheck-to-paycheck cycle? The solution typically involves taking several of the following steps:
-
Change your due dates: Check with your utility companies and creditors to see if you can change some of your monthly due dates. Ideally, you can arrange it so that all of your bills do not come out of the same paycheck.
-
Look into hardship plans: Check to see if your creditors or utility companies offer hardship programs to reduce or defer your payments. For example, if your income is low, you might qualify for the Low Income Home Energy Assistance Program (LIHEAP) through your utility company, or you may be eligible for an income-driven repayment plan on your federal student loans.
-
Find ways to increase your income: Try searching for a higher-paying job, increasing your work hours, or taking on a side gig, even if it’s just temporary.
-
Downsize your expenses: Move to a smaller home or sell your car for an older, more fuel-efficient model. Look through your financial statements to find expenses you can cancel or pause.
-
Start saving for emergencies: Once you’re in a position where you have little extra cash, start putting money into a savings account that earns interest. That way you’ll have some funds you can withdraw for emergencies.
-
Talk to a credit counselor: Talk to an NFCC or FCAA-certified credit counselor to get help creating or improving your budget and exploring debt management strategies.
If you still find yourself in a position where you need cash fast, try to avoid pricey payroll advances and payday loans. Instead, consider applying for a Payday Alternative Loan (PAL) through a credit union.
PALs range up to $1,000 and can be paid back over the course of one to six months. Interest rates are capped at 28% and you can receive the money within two business days of applying.
Read more: 7 credit unions anyone can join
