Payday Alternative Loans (PALs)
Stop the payday loan cycle with our new Payday Alternative Loan program.
We all know that payday loans are rarely a good idea, but we also know life happens. Payday loans often solve the problem in the short term- getting the cash you need, however they tend to make the situation worse in the long run. DId you know that most payday loans are due in full within 2 weeks and average an APR of 391%? The typical borrower will end up paying over $500 in fees. As you Credit Union, we want to be able to offer our members a better alternative- to help end the cycle of payday loans. That is why we are now offering PALs or Payday Alternative Loans.
To be eligible for a PAL- you must meet the following criteria:
- Be a member at the Credit Union for at least 6 months.
- Be employed for at least 6 months.
- Receive your direct deposit at the Credit Union.
As long as you meet these 3 simple requirements, you are eligible for the loan. There is no credit report pulled. Upon application, member may be approved for up to $1,000 for the initial request and may be increased upon request later. The loan charges a $25 fee and is financed at a rate of 21% APR.
PALs can also be a useful tool for building stronger credit. While most other loans all require a credit score, PALs do not and therefore give members with lower credit scores an opportunity to show credit worthiness.