Credit cards are super convenient, and TV and streaming ads make them seem like the answer to everything. But many people get a credit card and then feel trapped by it: the minimum payments are low, but an unexpected expense comes along. Now your minimum payments aren’t making a dent in your balance, and the interest rates are snowballing your debt.
Or maybe you’ve been denied, even though you have a job and reasonable spending habits. You don’t have a credit history — but how are you supposed to build credit without credit?
Whether you’re struggling to get a credit card or struggling to get out from under one, we’ve got good news: you have better options that can help you take control of your money, no credit cards required.
Credit cards can feel like the key to unlocking a better lifestyle, but they create a lot of problems for a lot of people:
Some people prefer to avoid credit cards entirely, even if they aren’t stuck in a credit card trap. The “I don’t need a credit card” mindset may be inconvenient, but it can definitely help you with better control over your spending.
Below are six alternatives to credit cards — other ways to pay for the things you need without handing over cash or swiping a traditional credit card.
These credit card alternatives aren’t the same, as each helps people in different financial situations reach various goals.
We’ll give you a detailed breakdown of each, but first, check out this table for a quick overview.
Heads up: there are two types of cash advances — cash advance apps and credit card cash advances. And they aren’t the same.
Credit card cash advances show up on your credit card statement and work like normal debt, usually with high interest if not paid back right away. We recommend staying away from credit card advances if you can.
Cash advance apps give users access to money they’ve already earned, but haven’t yet received. Most people use these apps to bridge the gap between paydays. Most cash advance apps give you access to a portion of your paycheck with no interest and low or no fees. Then, when your paycheck arrives, the app automatically pays back the advance. Some apps add more flexibility to payback terms.
Klover is a leading cash advance app that gives you up to $400 of your income early — with no fees, interest, or impact on your credit score.
Cash advance apps provide a lot of value:
Want to learn more about cash advance apps? Read our review of the best cash advance apps, or dive deeper into how to get a cash advance.
Secured credit cards require a cash deposit up front, which serve as your credit limit. Basically, you’re funding your own credit card. Card issuers that offer this payment method report to credit bureaus. The cards themselves aren’t difficult to obtain (as long as you have the money to fund one), so they can be a great way to build or rebuild credit. But since you have to fund them yourself, secured cards won’t help if you need to cover an expense right away.
Pros
Cons
Prepaid or reloadable cards are payment cards that are like a cross between a debit card and a gift card. You can reload money onto your prepaid card ,and the cardholder can spend it anywhere that accepts credit or debit cards.
These can help control spending because you can only spend what’s loaded on the card. But they aren’t credit cards, so they don’t build credit. Also, because you’re usually using your own money, prepaid cards won’t help you cover a sudden expense.
Pros
Cons
Debit cards link directly to your checking (or savings) account. When you pay with a debit card, the money is taken directly from your account. You won’t rack up debt with a debit card, but overdrafts (when you spend more than you have in your account) can be costly. Some newer debit cards offer perks or cash back similar to credit cards, though the rewards usually aren’t as good.
Pros
Cons
The name might be unfamiliar, but you’ve seen buy now, pay later (BNPL) services popping up across the internet. Companies like Klarna, Afterpay, and Affirm offer buyers the option to split purchases into smaller payments over time. Most of these services don’t charge interest — as long as you pay on schedule.
The best place to use BNPL is on larger purchases you can budget for, but you need to spread that payment out. For many people, four $100 payments over four months may be easier to swing than a $400 payment all at once.
Pros
Cons
Peer-to-peer (P2P) payment apps are digital wallet mobile apps, like Venmo, Cash App, or PayPal, that let you send and receive money, and sometimes even spend it. Many of these P2P apps offer debit cards or other payment methods, like crypto.
These apps are convenient for paying back friends or borrowing a little cash from people you know who can spot you.
Most of these won’t improve your credit score, though a few specific products from certain apps may.
Pros
Cons
Choosing the right option starts with narrowing down what you need (your current financial situation) and what you want (your goals).
You’ll also want to consider fees: how much are you willing to pay for a particular feature or convenience?
Your personal finance goals play a part, too. If budgeting and savings tools are important to you, some apps (including Klover) provide them for free. Other apps include them, but only as a subscription.
Once you determine what you need right now and your longer-term goals, you should be able to rule out several options and pick the best fit for you.
Cash advance apps are a solid option for many people. Three reasons are at the top of the list: no interest, broad eligibility, and fast cash access.
Credit card cash advances charge interest immediately — and fees on top of that.
Cash advance apps like Klover are different: they make money through optional tips, subscriptions, data, and points systems rather than interest.
So, when used correctly, cash advance apps won’t send you into a debt spiral or charge interest. Costs they do have are predictable and transparent, making them a more affordable option for managing money.
Cash advance apps are credit card alternatives that make quick decisions without credit checks. Instead, most look at your regular income and expect an active checking account with a positive balance history. As long as you bring in regular income, most apps will advance you a portion of that income.
Klover offers advances of up to $400 with no interest or credit checks, so it’s an accessible option for many who might not qualify for a traditional credit card.
Most apps will give you a decision nearly instantly, and money is available within a couple of business days. If you need it right away, most apps offer an instant cash advance option — just be prepared for additional fees.
The best part? Cash advance apps are incredibly easy to use. No complicated financial history or detailed applications. Just provide basic information and connect your checking account.
If you need an alternative to credit cards, you’ve got options. But the top alternatives solve different problems, so they have different features, fees, and limitations. The best option for some else may not be the best for you.
Cash advance apps aren’t the right option for building credit or managing everyday expenses. But they are ideal when you need early access to small-to-moderate amounts of money you can pay back when your next paycheck hits.
If a cash advance app seems like a good option, take a close look at Klover: our fee-free advances are easy to request, won’t hurt your credit score, and can help you get through a tight spot or surprise expense.
Ready to access your cash? Join Klover now.
Most cash advance apps, including Klover, don't report to credit bureaus since they're not extending credit — they're advancing money you've already earned. If building credit is your goal, consider a secured card or a credit-builder loan, and use cash advances only for short-term needs.
Cash advance apps work for occasional use, as most have no monthly fees or minimum usage requirements. You can download Klover, get verified, and request advances when unexpected expenses arise — there's no cost when you're not using it.
Different alternatives work better for different purchase sizes: BNPL services handle purchases from $50–$3,000, secured cards work up to your deposit limit, while cash advances typically max out at $100–$500. For substantial expenses, you might need to combine savings with BNPL or consider traditional financing.
