What is Bacon Pay? A Complete Guide to This Unique Loan Product

If you’ve seen ads for Bacon Pay loans and wondered what exactly they are, you’re not alone. This relatively new financial product has generated buzz, but many consumers are still unsure how Bacon Pay works. This guide will explain everything you need to know about this unique loan option.

What is Bacon Pay?

Bacon Pay is a short-term loan product offered by some credit unions and banks. It gets its memorable name from the idea that borrowers can get “quick cash to bring home the bacon.”

The defining features of a Bacon Pay loan include

  • Small loan amounts – Usually $200 to $1,000.

  • Short terms – Typically 1 to 6 months.

  • Fast funding – Money deposited as soon as the next business day.

  • Fixed payments – Equal monthly payments are set up to pay off the balance

  • No collateral – Loans are unsecured, so no asset is attached.

  • High interest – Interest rates are higher than other personal loans.

Bacon Pay is designed to provide fast cash for financial shortfalls between paychecks or other small borrowing needs. The quick funding and lack of collateral make it handy in a pinch.

How Does Bacon Pay Work?

The process of getting a Bacon Pay loan is designed to be quick and convenient:

  • Apply online – Fill out a short application with personal details and requested loan amount.

  • Get decision – Hear back in minutes if approved based on credit check and eligibility.

  • Sign documents – DocuSign makes it easy to electronically sign loan papers.

  • Get funds – Money is deposited as soon as the next business day once the loan closes.

  • Make payments – Equal monthly payments are automatically deducted from your bank account.

From application to getting the money takes just a day or two, much faster than traditional loans. The fixed payments over a short term create a fast payoff.

What are the Qualifications for Bacon Pay?

Since Bacon Pay is still a loan, lenders have eligibility requirements borrowers must meet:

  • Credit score – Each lender sets a minimum credit score, often 600 to 650.

  • Income – Stable monthly income that covers the loan payment.

  • Direct deposit – Proof of auto-deposited income speeds approval.

  • Age – Typically at least 18 years old.

  • Existing customer – Some lenders only offer to current account holders.

The credit check and income verification aim to ensure borrowers can repay the loan responsibly. Qualifying is easier than other loans.

What are the Benefits of Bacon Pay Loans?

Bacon Pay loans offer several advantages traditional bank loans don’t:

  • Fast turnaround – Get approved in minutes and money deposited the next day.

  • Small amounts – Loan sizes meet minor borrowing needs.

  • Short terms – Payoff happens in months instead of years.

  • Flexible – Use the cash for any purpose.

  • Convenient – Everything handled online.

  • No collateral – Approval without tying up assets.

The quick access to funds and speedy repayment help fill temporary personal finance gaps.

What are the Risks and Downsides?

While handy in a pinch, Bacon Pay loans have some drawbacks to consider:

  • High APRs – Annual percentage rates from 15% to over 30%, higher than other loans.

  • Fees – Late fees if a payment is missed and origination fees around 5%.

  • Payback strains – Small monthly budget may make repayment difficult.

  • Credit impacts – Short terms don’t build credit history like longer loans.

  • Renewal temptation – Easy to get stuck in a cycle of repeat borrowing.

Make sure the faster funding merits the higher cost and that you can budget the fixed monthly payments.

What are Some Common Bacon Pay FAQs?

What loan amounts are available?

Loan amounts typically range from $200 to $1,000. Each lender sets limits and requirements. Loan size often depends on income and credit score.

How long does it take to get the money?

Funding can be as fast as the next business day after loan approval and paperwork is complete.

How are Bacon Pay loans repaid?

Fixed equal monthly payments are automatically withdrawn from the borrower’s bank account. Online accounts make tracking easy.

Where are Bacon Pay loans offered?

Right now they are limited to certain banks and credit unions. But availability is expanding to more financial institutions.

Can the loan term be extended?

In some cases lenders may offer to extend the loan term. This reduces the monthly payment but increases the total interest paid.

Alternatives to Consider

While handy for fast cash, Bacon Pay loans aren’t the only option. Alternatives to consider include:

  • 401(k) or retirement plan loans

  • Credit card cash advances

  • Payday alternative loans

  • Traditional personal bank loans

  • HELOC or home equity loans

  • Loans from family or friends

  • Debt management plans

Compare interest rates, fees, qualifications, and impacts to find the best fit for your situation.

Is a Bacon Pay Loan Right for You?

While enticing for quick borrowing, make sure a Bacon Pay loan aligns with your financial situation and goals:

  • Will the payment plan fit my monthly budget?

  • Can I repay it before interest balloons?

  • Are there better options for what I need the cash for?

  • Can I qualify based on my credit history and income?

  • Am I borrowing as a last resort for a real emergency?

If you determine it is affordable and justifiable for a one-time need, a Bacon Pay loan can provide the short-term cash injection you’re looking for. But weigh it carefully against alternatives that may save money.


Bacon Pay offers a new approach to personal loans, providing quick access to cash for short terms. While convenient, borrowers should consider repayment ability and compare to alternatives before jumping in. With high interest and fees, Bacon Pay works best for one-time borrowings to bridge a temporary gap. Use it as a last resort rather than first choice. But when an urgent need arises, Bacon Pay can come through in a pinch.

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