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How (and where) to get a $400 personal loan

Written by: David Heiling

Updated:

4 min read
This date may not reflect recent changes in individual terms.

Editorial Note: Intuit Credit Karma receives compensation from third-party advertisers, but that doesn’t affect our editors’ opinions. Our third-party advertisers don’t review, approve or endorse our editorial content. Information about financial products not offered on Credit Karma is collected independently. Our content is accurate to the best of our knowledge when posted.

If unexpected expenses are putting pressure on your finances, a loan could provide some relief. 

But it’s important to know that small loans can come with expensive terms (and sometimes cost you more in interest than the amount you borrow).  Some of these loans can be called payday loans. To find the best option for your situation, compare loan terms and shop around. 

We’ll guide you through potential lending options and how to apply, as well as suggest alternatives to consider before you decide which small loan may be right for you.

The best $400 personal loans

MoneyLion

 In addition to traditional personal loans, MoneyLion offers no-interest cash advances in small amounts, which can be useful if you need just a little bit to tide you over until payday. You’ll have to link your checking account to the app and you may have to wait to be eligible for the full cash advance amount available. There’s no cost to borrow, but you’ll have to pay a fee if you’d like your money delivered as quickly as possible.

Sezzle

Sezzle might make sense if you’d like to buy something today and pay for it later, over four interest-free installments. As long as you make your payment on time, you won’t have to worry about any fees. But you’ll need to come up with a 25% down payment and then three payments of 25% every two weeks for 6 weeks to pay 0% in interest.

Oportun

Oportun might be worth exploring if you have bad credit (or no credit) and need a small loan (new customers may not qualify for large loans). Oportun offers prequalification so you can check your eligibility before applying. While you might qualify without having great credit, you’ll likely have to pay an interest rate on the higher end of Oportun’s rate range.

Navy Federal Credit Union

A Navy Federal Credit Union personal loan might make sense if you’re part of the military community. NFCU offers unsecured and secured personal loans, but you must become a member first.

How can I get a $400 loan fast?

It’s possible to get quick funding for small loans, but it’s important to consider interest rates, loan terms and fees before making a decision.  Although many lenders don’t offer small loans less than $1,000, some credit unions, online lenders, loan apps and payday lenders do. 

You may be able to get a same-day loan or next-day loan depending on the type of funding and the lender. But keep in mind that you may have to pay a monthly membership fee or one-time fee for an “instant” transfer.

Here are some common types of small loans.

Small personal loans online

Some online loans may offer quick funding and flexible credit requirements, but these loans also may come with very high maximum interest rates that can hinder financial progress.

Some online lenders allow you to prequalify with a soft credit inquiry, a good way to compare potential rates and terms without affecting your credit scores. However, if you proceed with a loan application, the lender will likely perform a hard credit inquiry to determine final approval.

Buy-now, pay-later apps

Buy now, pay later (BNPL) loans are popular because they let you make purchases and spread payments over time, often without interest. These apps may lend you money without a hard credit inquiry. 

But a buy-now, pay-later loan will only be a good option to consider if you need to make a quick retail purchase and the company offers a BNPL financing option. For instance, if you need to purchase new tires for your vehicle, you may be able to get a buy-now, pay-later plan.

To avoid interest, you’ll usually have to complete your four payment installments within six weeks. And if your payment is late, you may face a late fee and a late payment that is reported to the credit bureaus and could harm your credit. Some BNPL apps also have optional monthly subscription fees.

Payday advance apps

Payday advance apps may offer a way to access part of your paycheck before payday without a credit check, which can be helpful in urgent situations. You could get funds to help bridge the gap with everyday expenses like bills and groceries until your paycheck arrives.

Many payday advance apps require proof of regular income, so this option is best if you have regular deposits hitting your bank account. If you’re new to payday advance apps, it may take a few days for the app to verify your information, and might not be the best option if you need funds ASAP.

Some payday advance apps have 0% interest rates. But providers may charge monthly subscription fees or fees to get instant access to funds, increasing the total loan cost. Some also ask people to leave optional tips. 

Payday loans

A payday loan may help cover a financial emergency if you need fast access to funds, but it’s best to consider it as a last resort. Payday loans often come with excessive fees that can add up to triple-digit annual percentage rates (APRs), which can be as high as 400%. 

Payday lenders typically offer loan amounts less than $500 with the expectation you’ll repay by your next payday, but terms vary by state. And not all states permit them. Payday lenders may advertise same-day funding, but when you get access to cash depends on your lender.

Small loan alternatives

Depending on your situation, there are some small loan alternatives that you may also want to consider.

  • Payday alternative loans from credit unions: These are small, affordable loans provided by certain federal credit unions as an alternative to traditional payday loans. Check if a local credit union offers them.
  • Medical repayment plans/forgiveness: If you find yourself faced with unexpected medical bills, consider discussing repayment options with your hospital. Low-income or underinsured individuals may get access to financial assistance.
  • Charitable grants or utility payment plans: You may be eligible for an emergency assistance grant or loan based on your financial situation. Exploring your area’s offerings could be worthwhile to see what support is available.

FAQs about $400 loans

Can I get a $400 loan without using a payday loan?

There are several options to avoid extremely high-interest payday loans, which can sometimes trap you in a cycle of debt. Consider a payday alternative loan from an online lender. Sometimes, a cash advance from a credit card can have more favorable terms than a payday loan. If you need a bit of extra cash for everyday expenses before your next paycheck hits, consider a payday advance app.

Will a $400 loan affect my credit?

Many financial institutions that offer traditional personal loans for small amounts require a hard pull of your credit before approving you for a loan, which can temporarily drop your credit score. However, a personal loan can build credit, especially if your lender reports to the credit bureaus and you make your payments on time. Other lenders like buy now pay later, payday lenders, or payday apps may not require a hard credit check.

Can I get an $400 loan with bad credit?

Yes, getting a small loan is usually possible even if you have bad credit. Lenders willing to loan small amounts to individuals with poor credit scores typically charge higher interest rates because they perceive these loans as higher risk. Other options to consider include payday alternative loans, buy now, pay later apps and payday advance apps.

*Approval Odds are not a guarantee of approval. Credit Karma determines Approval Odds by comparing your credit profile to other Credit Karma members who were approved for the personal loan, or whether you meet certain criteria determined by the lender. Of course, there’s no such thing as a sure thing, but knowing your Approval Odds may help you narrow down your choices. For example, you may not be approved because you don’t meet the lender’s “ability to pay standard” after they verify your income and employment; or, you already have the maximum number of accounts with that specific lender.