Lower-risk alternative
Federal credit union PALs
Payday Alternative Loans are small-dollar loans offered by some federal credit unions under NCUA rules.
Who it may fit
People who can join a participating credit union and need a structured installment alternative.
Tradeoffs
- Membership and application requirements apply.
- Approval is not guaranteed.
- Interest and an application fee may apply, but costs are capped by rule.
Practical next steps
- Search for a federally insured credit union you can join.
- Ask whether it offers PAL I or PAL II loans.
- Request the APR, fee, payment schedule, and total repayment in writing.
Public guidance
NCUA: Payday Alternative Loans
Confirm the details.Ask for costs, timing, eligibility, and consequences in writing before agreeing.