Cash Advance Math
Explore

CASH ADVANCE MATH / PAYDAY ALTERNATIVE LOANS

A small loan. More room to repay.

Payday Alternative Loans, or PALs, are installment loans from federal credit unions. Membership and the credit union's lending criteria apply.

Payday Alternative Loans, or PALs, are small installment loans from federal credit unions. You pay them down over time, instead of taking another advance each payday.

PAL I

$200.00 to $1,000.00

1 to 6 months to repay

You must have been a member for at least 1 month.

PAL II

Up to $2,000.00

1 to 12 months to repay

You must join, but there is no minimum membership period.

Maximum interest rate: 28%. Application fee: actual processing cost, up to $20.00. These are ceilings, not a quote. Both loans must fully amortize. Rollovers are prohibited.

Ask a federal credit union whether it offers PAL I or PAL II, what membership requires, and how soon it can fund the loan.

Read the NCUA guide to PALs

How to find a credit union that offers PALs

Start with a federal credit union you already belong to, or contact a federal credit union you are considering joining. Ask whether you are eligible for membership and whether it offers PAL I or PAL II. Availability and lending decisions depend on the credit union.

The NCUA's consumer guide is a starting point for understanding the program. When you contact a credit union, ask for the total application fee, interest rate, payment schedule and expected funding time before you apply.

These PAL rules apply to federal credit unions. State-chartered credit unions follow their state rules and may offer similar small loans with different terms.

Compare the total cost and repayment period

Our calculator shows a PAL separately because its repayment period differs from an advance due on your next payday. The example uses maximum-cost assumptions, not a credit union's offer.

Compare with the calculator ↗Check app fees ↗Read your state guide ↗

Sources and review date

Last checked Sep 29, 2026. Confirm current pricing and membership requirements with the credit union.