Payday Alternative Loans

Have you ever thought one more paycheck would make all the difference? Here at GHS Federal Credit Union, we offer a short-term loan option to help you make ends meet. GHS offers an alternative to high-cost payday loans. If you have found yourself struggling to make payments before your next paycheck, you may have acquired a Payday Lender Loan. These loans often have high interest rates and outrageous terms that leave you further in debt.

Under the regulation of the National Credit Union Administration (NCUA), GHS offers a secure, affordable option called the Payday Alternative Loan (PAL). A PAL can either be used instead of a Payday Lender Loan or can be used to help you get out of one and pay off your debt with a manageable rate, payment, and term.

PALs include specific consumer protection features:

Loan amount up to $2,000.00
Maximum loan term of 12 months
One loan at a time to a borrower and no more than 3 in a rolling 6 months
Loan is available at time of membership
Application fee of $20.00

Applying Is Easy

1
Apply Online

Quick and easy online application.
2
Two Recent Pay Stubs

If self-employed, last two years of tax returns.
3
Other documents

Other documents, as requested by GHS
Federal Credit Union. Non-members must
provide a copy of their photo ID.

What Else You Should Know

Principal - The principal of the loan is not less than $200.00 or more than $1,000.00

Aggregate Dollar Limits - The credit union includes, in its written lending policies, a limit on the aggregate dollar amount of loans made under this section of a maximum of 20% of net worth and implements appropriate underwriting guidelines to minimize risk; for example, requiring a borrower to verify 43 employment by producing at least two recent pay stubs.

  
    DISCLOSURE INFORMATION
    
    Service
    Cost
  
    Rate
    28%
  
    Application Fee:
    $20.00 one-time fee

Contact Us to Learn more or Apply

PALS FAQ

Do all credit unions offer PALs?

GHS Federal Credit Union is exceptional–most credit unions don’t offer payday alternative loans. As recently as 2017, only 1 in 7 credit unions did.
It’s often beneficial to apply for a PAL through a credit union because, unlike traditional banks, credit unions are cooperative, member-owned, and not-for-profit.
That means profits are returned to members through reduced fees, lower interest rates, and greater savings. As a result, it’s in a credit union’s best interest to look out for its members.

Why are PALs safer than traditional payday loans?

There’s a reason most financial counseling advises against conventional payday loans, which are typically for high amounts over a short term (around two weeks).
The payday loan model is based on the assumption that borrowers will be unable to repay the whole amount promptly, meaning the lender makes money on extremely high interest payments. Typically, they will attach finance charges if borrowers are unable to pay back their loan by the next payday.
By contrast, PALs don’t set borrowers up for failure. PALs offer more manageable payments with lower interest rates and no additional fees.

Does it affect my credit score?

Credit unions send your PAL repayment reports to the major credit union bureaus. If your payments are on time, this can improve your credit score.

Payday Alternative Loans