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 St. Louis?
- 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.
- 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.
- 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.
- Gather Required Documentation. Prepare the necessary documentation, such as proof of income and identification, to support your PAL application.
- 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.
- 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.
- Receive the Funds. If approved, the credit union will disburse the loan amount to your designated account.
Requirements and Conditions
- Being a member of a credit union that offers PALs.
- Meeting the credit union's membership eligibility criteria.
- Providing proof of income and identification.
- Demonstrating the ability to repay the loan within the specified repayment period.
- Complying with the credit union's underwriting guidelines and loan terms.