A federal credit union alternative to a payday loan, capped at a much lower rate than the triple-digit APRs typical of a standalone payday loan.
How it works
Loan amount times the interest rate, times the term as a fraction of a year, gives the interest cost. Adding the application fee gives the total cost.
What this does not include
PALs are only available to credit union members who typically must belong to the credit union for at least a month before qualifying — this calculator computes the cost assuming eligibility, not membership requirements.
How to use this calculator
- Enter the loan amount, interest rate, term, and application fee.
Frequently asked questions
How does a PAL compare to a typical payday loan?
A payday loan can carry APRs of 300%-400% or more; a PAL’s rate is capped at 28% plus a small application fee, a dramatically lower cost for a similarly short-term, small-dollar loan.
Is there a limit on how many PALs someone can take?
Yes — up to three PALs within a rolling six-month period, with no overlapping or rolling over from one PAL directly into another.
Do all credit unions offer PALs?
No — it’s an optional program federal credit unions may choose to offer, not a requirement, so availability varies by institution.
