Payday Alternative Loans (PALs) in Huntsville (AL)

PALs
Get a payday alternative loans (PALs) in Huntsville (AL) from one of the lenders verified by our specialists. On 19.07.2024 there are 4 options available to you. Increase your chances of getting a loan — fill out an application with a free credit rating check.
Offers: 1
Updated:
24.06.2024
10:01
Finanso
Personal Loans
Rating by Finanso®
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The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

Recommended FinScore™
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300
650
1000
2000.00 – 100000.00 $
Rate
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Interest rate

6.34 – 35.89 %
Term
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Loan term for the financial product

2 months – 72 months
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The Legal Status of Payday Alternative Loans (PALs) in the USA

Payday Alternative Loans (PALs) in the USA are regulated by the National Credit Union Administration (NCUA) under specific federal guidelines. The NCUA's rules for PALs are outlined in Part 701.21(c)(7)(iii) of the NCUA's regulations. Some states may also have additional laws and regulations governing these loans, creating a combined framework of federal and state oversight to protect consumers and ensure responsible lending practices.

Features

  • Lower Interest Rates. One of the key advantages of PALs is their lower interest rates compared to traditional payday loans. The NCUA sets a maximum interest rate of 28% for PALs, making them a more affordable borrowing option.
  • Longer Repayment Periods. PALs typically offer longer repayment periods than payday loans. Instead of requiring borrowers to repay the loan in a lump sum on their next payday, PALs allow borrowers to repay the loan over a period of one to six months. This extended repayment period can help borrowers manage their finances more effectively.
  • Borrowing Limits. PALs usually offer loan amounts ranging from $200 to $1,000. The specific loan amount available to a borrower depends on their income and the credit union's underwriting guidelines. These loan limits provide borrowers with access to small dollar loans to cover their immediate financial needs.
  • Credit Check Requirement. Credit unions that offer PALs may perform a credit check as part of the application process. However, they often consider other factors beyond credit scores when evaluating loan applications. This means that individuals with less-than-perfect credit may still qualify for a PAL.

How to Get a Payday Alternative Loan in Huntsville (AL)?

  1. Research Credit Unions. Identify credit unions that offer PALs. The NerdWallet, LendingTree, and Experian websites provide information on PALs and credit unions that offer them.
  2. Check Membership Eligibility. Determine if you meet the membership requirements of the credit unions offering PALs. Some credit unions may require you to be a member for at least one month before applying for a PAL.
  3. Join a Credit Union. If you meet the membership criteria, become a member of the credit union by opening an account and fulfilling any other requirements.
  4. Gather Required Documentation. Prepare the necessary documentation, such as proof of income and identification, to support your PAL application.
  5. Apply for a PAL. Submit your PAL application to the credit union. Some credit unions allow online applications, while others may require you to visit a branch in person.
  6. Wait for Approval. The credit union will review your application and determine if you qualify for a PAL. The approval process may vary depending on the credit union.
  7. Receive the Funds. If approved, the credit union will disburse the loan amount to your designated account.

Requirements and Conditions

  1. Being a member of a credit union that offers PALs.
  2. Meeting the credit union's membership eligibility criteria.
  3. Providing proof of income and identification.
  4. Demonstrating the ability to repay the loan within the specified repayment period.
  5. Complying with the credit union's underwriting guidelines and loan terms.
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