If you or someone in your family is stuck paying payday loan fees over and over, this is for you.
The Problem
The Trap
The Solution: PrimeWay's Payday Loan Alternative
What You Save
If you borrow $500, a payday lender charges $975 in fees. PrimeWay charges just $47. You save $928.
What to Do Right Now:
Be ready before life happens, open your account with PrimeWay Federal Credit Union today and build your 3-month emergency cushion.
Both loans give you the same money. The difference is how much EXTRA you pay on top.
| Payday Lender | PrimeWay PAL | What This Means | |
|---|---|---|---|
| Money you get | $500 | $500 | Same amount. Same cash in your hand. |
| Extra fees you pay on top | $975 in fees | $47 in interest + $20 app fee = $67 | PrimeWay charges $908 LESS in fees |
| Total you pay back | $1,475 | $567 | You pay back the $500 plus the fees |
| Money you keep in your pocket | $0 | $908 stays with YOU | That is rent. Groceries. Freedom. |
Payday loan assumes a typical fee of $15 per $100 borrowed ($75 per cycle), rolled over 12 times over about 6 months. PrimeWay PAL at 18% APR over 12 months plus $20 application fee.
| What You Borrow | Payday Lender: Extra Fees You Pay | PrimeWay: Extra Fees You Pay | Money That Stays in YOUR Pocket |
|---|---|---|---|
| $500 | $975 | $67 | $908 saved |
| $1,000 | $1,950 | $93 | $1,857 saved |
| $2,000 | $3,640 | $219 | $3,421 saved |
These numbers show only the EXTRA money you pay : the fees and interest on top of the amount you borrowed. The amount you borrowed is the same either way.
A Payday Loan Alternative (we call it a “PAL” for short) is a small loan from a credit union. The federal government created the PAL program so families would have a safe, fair way to borrow money in an emergency , without getting trapped in a cycle of debt.
Here is the easiest way to understand the difference. A payday loan is designed to keep you coming back. A PAL is designed to help you move forward. Let us look at the details.
| Question | Payday Lender's Answer | PrimeWay PAL's Answer |
|---|---|---|
| How much interest do I pay per year? | 391% to 664% | 18% |
| How much can I borrow? | $100 to $1,000 (usually) | $400 to $2,000 |
| How do I pay it back? | ALL of it plus fees in just 14 days | Small, equal payments over 1 to 12 months |
| What if I cannot pay it all back in 2 weeks? | You "roll over" : pay a fee, owe the same amount, repeat forever | This never happens. You always pay in small monthly pieces. |
| How much does it cost to apply? | $75 to $150+ in broker fees | $20 (that is the max allowed by law) |
| Does it help my credit score? | NO. They only tell the credit companies if you fail to pay. | YES. Every on-time payment gets reported. Your score goes up. |
| Can I pay it off early to save money? | Sometimes, but there may be penalties | Yes. Always. No penalties ever. |
| How many loans can I have at once? | No limit (you can stack many at once) | Only 1 at a time. No more than 3 in 6 months. |
| Who makes money from my loan? | Wealthy shareholders of big companies | YOU. PrimeWay is owned by its members, not investors |
| Can I get help with my money? | No | Yes. Free financial advice for all members |
You might be wondering how a company can charge 600% interest. Is that even legal? The short answer is that they found a trick to get around the law. Let us explain how it works in simple terms.
Many states have laws that say lenders cannot charge more than 10% to 36% interest per year. That sounds like it should protect you. But payday lenders get around these laws with a clever trick.
They change their name. The payday loan store you walk into (or visit online) does not actually lend you the money. Instead, they call themselves a “Credit Access Business” or CAB.
They use a middleman. A separate, hidden company lends you the $500 at the legal interest rate (for example, 10% in Texas). That part follows the law.
They add a giant fee. The payday store then charges you a huge “service fee” for setting up the loan. This fee can be $100, $150, even $500 or more. And here is the important part. There is no law limiting how big this fee can be.
You pay both. You pay 10% interest (legal) PLUS a giant service fee (no limit). When you add it all up, you are really paying 400% to 664% per year. The law was supposed to protect you, but the trick makes it useless.
| Protection Level | Examples | What This Means for You |
|---|---|---|
| STRONG: Payday loans banned or capped at 36% | New York, Illinois, Colorado, Montana, and 14 other states + Washington D.C. | You are protected. Payday lenders cannot operate or must charge fair rates. |
| SOME: A few rules but big loopholes | Some states with partial limits on rollovers | There are some protections, but lenders find ways around them. |
| WEAK OR NONE: No limits on fees | Texas, Mississippi, Utah, Nevada, and others | Lenders can charge 400% to 664% legally. A credit union PAL is your best defense. |
Payday lenders do not like to show you the yearly interest rate (called “APR”). Instead, they say things like “just $15 per $100.” That sounds small. But it is not. Here is what the biggest payday lenders in the country actually charge, based on their own paperwork and government records.
| Company | Yearly Interest Rate (APR) | What You Pay in Fees on a $500 Loan |
|---|---|---|
| ACE Cash Express | 531% to 662% | $142 in just 17 days |
| Speedy Cash | 514% to 610% | $786 over 140 days |
| CashNetUSA (online) | 207% to 805% | Fees of $0.40–$0.80 per day per $100 |
| Check 'N Go | About 650%+ | $125 fee for just 14 days |
| Advance America | 143% to 688% | $75 fee for 14 days |
| Check Into Cash | 391% to 664% | $75–$150 fee for 14 days |
| PrimeWay PAL | 18% | $47 over 6 MONTHS |
What does APR mean? APR stands for Annual Percentage Rate. It is the total cost of borrowing money measured over one year. Think of it like a speed limit for interest. 18% APR is like driving 18 mph. 664% APR is like driving 664 mph. Both get you where you are going, but one is safe and the other is a disaster.
ACE Cash Express charges you $142 in fees in just 17 days.
You have probably seen ads for apps like Cleo, Klover, Earnin, Dave, and Brigit. They say things like “get paid early” and “no interest.” Sounds great, right? But there is a catch. These apps make money in different ways that add up fast.
Monthly fees you cannot avoid: Some apps charge $6 to $16 per month just to use them. That is up to $192 per year. And you MUST pay this fee to borrow money through the app.
Speed fees when you need money fast: The “free” transfer takes 1 to 5 business days. But if you need money TODAY (which is why you are using the app), you have to pay $2 to $20 for an instant transfer.
“Voluntary” tips that are not really voluntary: Apps like Earnin and Klover ask you to add a “tip” when you repay. They make it feel like the right thing to do. They even suggest an amount. Most people tip $3 to $14. But a $5 tip on a $100 advance that you repay in two weeks is the same as 130% yearly interest.
| App | Most You Can Borrow | Monthly Fee | Speed Fee | Do They Ask for Tips? | Real Yearly Cost |
|---|---|---|---|---|---|
| Cleo | $250 | $6 to $9/month | $4 to $15 | No | 150% to 300% |
| Klover | $400 | Optional | $1.50 to $20 | Yes | 150% to 400% |
| Earnin | $1,000 | None | $4 | Yes | 100% to 250% |
| Brigit | $500 | $9 to $16/month | Small fee | No | 100% to 200% |
| Dave | $500 | $1 to $5/month | Up to 1.5% | Yes | 100% to 300% |
| PrimeWay PAL | $2,000 | None | None | No | 18% |
Real yearly cost is an estimate based on borrowing $100 for two weeks with instant transfer and average tips. It shows what the fees would equal if you kept borrowing all year.
Here is the bottom line. These apps look free, but they make money every time you use them. And people who start using these apps borrow more and more over time , going from 2 advances per month to 4 advances per month within their first year. That pattern is the same trap as payday loans, just with a nicer-looking app.
Besides payday loan stores and phone apps, there are online companies that lend money at very high rates. Some of them are run by Native American tribes. Because of special legal rules, these tribal lenders say they do not have to follow state laws. That means they can charge whatever they want , often 400% to 800% per year.
Here are the types of online lenders to watch out for.
| Type | Company Names | Yearly Interest Rate | Why They Are Dangerous |
|---|---|---|---|
| Tribal Lenders | Big Picture Loans, Plain Green, MaxLend | 400% to 800%+ | They say state laws do not apply to them. They can charge almost anything. |
| Online Payday Companies | CashNetUSA, NetCredit, Cash Central | 150% to 805% | The total amount you pay back can be 2 to 3 times what you borrowed. |
| Lines of Credit | Elastic, Mobiloans | 200% to 450% | The fees are confusing on purpose. You do not know the real cost until it is too late. |
| Small Advance Companies | Ualett, Money App, Cashli | Varies | They lend small amounts with fees that seem tiny but add up fast. |
| Other Online Lenders | Fig Loans, FirstCash, Greenline, Sun Loan, Clearline | 150% to 500%+ | They target people who are already in financial trouble. |
Danger: Many people borrow from several of these companies at the same time. A payday store, a phone app, AND an online lender all at once. Each one takes money out of your bank account automatically. When they all try to take money at once and there is not enough, your bank charges you $35 each time. This can drain your bank account to zero and get your account shut down.