Payday alternative loan (PAL) calculator
Payday alternative loans: the credit union option
Federal credit unions offer small payday alternative loans (PALs) with a capped rate and longer terms. See whether one fits your amount and timing, the payment, and how its cost compares with a payday loan.
The loan you need
28% at most
$20 at most
Which payday alternative loan fits
- PAL I: $200 to $1,000, 1 to 6 months, after at least 1 month of membership. Needs a month of membership first.
- PAL II: up to $2,000, 1 to 12 months. Fits, if the credit union offers PAL II.
Monthly payment
$244.31
$52.92 total cost
The same amount as a payday loan
$735
in fees, renewed every 14 days for 3 months
| Rate used (capped at the PAL limit) | 28% |
|---|---|
| Application fee | $20.00 |
| Interest | $32.92 |
| APR with the fee | 46.1% |
| Total cost of the PAL | $52.92 |
Not every credit union offers PALs, so ask. You can search for federal credit unions near you on the NCUA's locator.
Find a credit unionNeed it faster, or can't join a credit union? Compare every option.
Not a member? Pick your state to see installment loan offers at 36% APR or less that serve it.
How this works
- PAL I: $200 to $1,000, repaid over 1 to 6 months, after at least 1 month of membership (12 CFR §701.21).
- PAL II: up to $2,000, repaid over 1 to 12 months (12 CFR §701.21).
- The rate is capped at 28% APR and the application fee at $20 (MyCreditUnion.gov); the tool never uses more than either.
- The payment is a fixed monthly amortization, and the APR counts the application fee.
- The payday comparison prices the same amount at $15 per $100 every 14 days, renewed for the same number of months.
- Not every credit union offers PALs, so ask yours.
Sources
- 12 CFR §701.21: payday alternative loan limits (Cornell LII)
- MyCreditUnion.gov: payday alternative loans
- NCUA: credit union locator
- CFPB: what is a payday loan?
Awaiting expert reviewEstimates only; not financial, tax or legal advice.
Common questions
What is a payday alternative loan?
A small loan from a federal credit union with limits set by federal rule: PAL I loans are $200 to $1,000 over 1 to 6 months, and PAL II loans are up to $2,000 over 1 to 12 months.
What's the most a PAL can cost?
A rate of up to 28% APR, plus an application fee of up to $20 to cover the credit union's processing costs.
Do I need to be a credit union member?
Yes. A PAL I also requires at least 1 month of membership before the loan. Ask the credit union which PALs it offers.
How does a PAL compare with a payday loan?
A PAL spreads repayment over months at a capped rate, while a payday loan is usually due in two weeks and charges its fee again each time it's renewed. The calculator prices both for your amount.
Does DebtCheckUSA get paid for what this tool shows?
The costs are the same no matter what. Some short-on-cash tools can show loan offers from a paid partner, labeled Paid partner and placed below the cheaper options. Nothing you type is sent to them.
Is the information I enter saved or sent anywhere?
No. What you type stays on this page. It isn't saved or sent anywhere, and it clears when you leave or reload the page.