Beware of the payday loan alternatives @ credit unions

It’s not new for Credit Unions to try and offer a PAL (Payday Alternative Loan), but beware.

For example, this article in the Channel 11 News says:

Another pro is you build credit with this program. “If someone is using a payday lender they’re not necessarily able to build credit with it even if they always pay it on time. It’s not a positive reflection or any reflection on your credit report,” Natasha explains.

If it can help your credit score, it can also hurt it. Payday loans can not hurt your credit score. That’s a very big deal for many borrowers. Also, being able to ding someone score is a great collection tool. I don’t mention that in the article.

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