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Now Offering Payday Alternative Loans (PALs)

Jul 30, 2019, 16:04 PM by LKCS Team

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 your 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.

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