MDG alternatives: what to check before you borrow from us
Several of these cost less than we do. Work down the list in order and stop at the first one that fits your situation. If none of them do, the case for borrowing here is at the bottom of the page.
Last updated 15 September 2026Figures as of 15 September 2026
Why a lender is telling you to look elsewhere
Because several of the options below cost less than we do, and you will find that out eventually anyway. A borrower who took the cheaper route and came back to us two years later for something else is worth more to us than one who felt misled. Work down this list in order; stop at the first one that fits.
Cheaper than us, if you can get them
These four are worth a phone call before you borrow anything at 18% to 35.95%. For reference, a $1,000 MDG loan at 29.99% over 12 months costs $169.76 in interest.
A credit union small-dollar loan
Federal credit unions offer small loans designed as a payday alternative, with rates capped far below ours and terms of one to twelve months. Many will lend to members with imperfect credit, and joining is often a matter of living in an area or working for an employer. If you qualify, this is almost always the cheapest borrowed money available to you.
Ask: "Do you offer a payday alternative loan, and what would I need to join?"A payment plan with whoever you owe
Hospitals, dentists, utilities, mechanics and landlords routinely agree to installments, and a large share of those plans carry no interest at all. It costs one awkward phone call to find out. Borrowing to pay a bill that would have been split for free is the most common expensive mistake we see.
Ask before the due date, not after it goes to collections.Earned wage access through your employer
Many employers now offer access to wages you have already earned before payday, either free or for a small flat fee. Some also run hardship funds or interest-free staff loans that are never advertised. Your HR or payroll contact will know.
Worth checking even if you assume your employer does not offer it.A credit card you already hold
If you have available credit at a lower APR than we would offer, use it. A purchase on a card at 22% costs less than a loan at 29.99% for the same amount over the same period. Cash advances on a card are a different matter, as they usually start charging interest immediately and add a fee.
Compare the card's purchase APR, not its cash advance APR.Free help, when the problem is bigger than one bill
If money is tight every month rather than just this month, another loan postpones the problem. These cost nothing.
Nonprofit credit counselling
A counsellor reviews your whole picture free of charge and can often negotiate lower rates with existing creditors through a debt management plan. Look for a nonprofit agency accredited by a recognised national body, and never pay an upfront fee to a company promising debt settlement.
Local assistance programs
Utility hardship funds, rental assistance, community action agencies and local charities exist in most areas and are chronically underused. Dialling 211 in the United States connects you to a local referral service that knows what is available where you live.
Using either of these does not count against you with us. If you apply later, a period of counselling in your history is not a decline reason.
Options to weigh carefully
Not wrong, but each carries a cost that is easy to underestimate.
Borrowing from family
Usually the cheapest money in the world and the most expensive relationship risk. If you do it, write down the amount and the repayment dates like a real agreement. Ambiguity is what damages families, not the loan itself.
Retirement account loans or withdrawals
A 401(k) loan looks cheap until you leave the job and the balance becomes due, and an early withdrawal can trigger tax and penalties. Talk to a tax professional before touching retirement money for a short-term problem.
Options to avoid
Payday loans frequently run above 300% APR and are built to be rolled over. Car title loans put the vehicle you need for work at risk. Anyone asking for an upfront fee to release a loan is running a scam, not a lending business, however convincing the paperwork looks. Our complaints page explains how to report that.
When MDG is the sensible choice
Having argued against ourselves for most of this page, here is the honest case for using us.
We are a good fit when
- The expense is urgent and the cheaper options above need days or weeks you do not have.
- You have already been declined by a credit union or a bank.
- The amount is between $200 and $5,000 and you can clear it within two years.
- You want a fixed payoff date, a 35.95% ceiling, and payments reported to a credit bureau so the repayment counts for something.
We are a poor fit when
- You need more than $5,000.
- The shortfall repeats every month.
- You qualify for a credit union loan, a 0% plan, or a free payment plan with the provider.
- The payment would only fit by cutting something essential.
Common questions
What is the cheapest alternative to an MDG loan?
Usually a small-dollar loan from a federal credit union, which is capped well below our rates and designed as a payday loan alternative. A free payment plan direct with whoever you owe is cheaper still, because it costs nothing at all.
Will using a credit counsellor stop me borrowing later?
No. A period of nonprofit credit counselling in your history is not a decline reason with us, and dealing with the underlying problem usually makes a later application stronger, not weaker.
Is a credit card cheaper than an MDG loan?
For purchases, often yes, if your card's purchase APR is below the rate we would offer you. A cash advance on a card is usually not cheaper, because interest typically starts immediately and a fee is added on top.
What about payday loans?
Payday loans frequently exceed 300% APR and are structured around rollovers, which is how a short-term borrowing need becomes a long-term one. Our cash advance covers the same situations in fixed installments at 18.00% to 35.95%.
Is a 401(k) loan a good idea?
It can look cheap, but if you leave the job the balance can become due quickly, and an early withdrawal may trigger tax and penalties. Speak to a tax professional before using retirement money for a short-term problem.
How do I find local assistance where I live?
Dialling 211 in the United States connects you to a local referral service covering utility help, rent assistance and community programs. Many of these funds go unclaimed each year.
Related pages
Everything on this page links back to the product pages and disclosures it refers to.
MDG rates and fees
What we cost, so you can compare properly.
Read itMDG vs OppLoans
How our 35.95% ceiling compares to other online lenders.
Read itComplaints and contact
Reporting a scam, or reaching a person here.
Read itMDG requirements
What it takes to qualify if you decide to apply.
Read itSee your own numbers before you decide
Two minutes, a soft credit inquiry, no fee and no obligation. Nothing is binding until you sign a loan agreement.