When an unexpected financial emergency strikes—a sudden car repair, an urgent medical bill, or a critical utility payment—the pressure to find fast cash can be overwhelming. In these moments, payday loans often appear as a quick and accessible solution. Marketed as simple, convenient cash advances, they promise immediate relief to those in a tight spot.

However, this convenience comes at a steep price. The structure of these loans, characterized by exorbitant interest rates and short repayment terms, frequently traps borrowers in a devastating cycle of debt. The goal here is to provide a transparent, comprehensive examination of how payday loans work, their true costs, the significant risks involved, and a detailed exploration of safer, more affordable alternatives to empower you to make a confident and informed financial decision.

How Payday Loans Function: The Mechanics Behind the Money

A payday loan is a type of short-term, unsecured loan, also commonly known as a cash advance or deferred deposit loan. The loan is typically for a small amount, generally $500 or less, and is designed to be repaid in full on the borrower's next payday, usually within two to four weeks. The process is designed for speed and ease, which is a significant part of its appeal to consumers under financial stress.

The Application Process and Requirements

Unlike traditional loans from banks, the eligibility criteria for payday loans are minimal. Lenders focus on your immediate ability to repay from your next income source rather than your long-term financial history.

The basic requirements generally include:

• Being at least 18 years old.
• Possessing a valid government-issued photo ID.
• Having an active checking account, credit union account, or in some cases, a prepaid card account.
• Providing proof of a regular source of income, such as a recent pay stub or bank statement showing direct deposits.

Notably, most payday lenders do not conduct a hard credit check with the three major credit bureaus (Equifax, Experian, and TransUnion). This makes the loans accessible to individuals with poor or no credit history, but it is a critical feature of their high-risk model.

This lack of underwriting means the lender does not formally assess a borrower's ability to repay the loan while meeting their other existing financial obligations. This approach is fundamentally different from responsible lending practices and is directly linked to the high probability of loan renewal and the subsequent debt cycle.

The Core Mechanism: Lender Access to Your Account

The transaction is secured by granting the lender future access to your bank account. This is the cornerstone of how payday loans work and is typically accomplished in one of two ways:

1. A Post-Dated Check: The borrower writes a personal check for the full loan amount plus the lender's fee, post-dated to their next payday. The lender holds this check and cashes it on the due date.
2. ACH Authorization: The borrower provides an Automated Clearing House (ACH) authorization, giving the lender permission to electronically withdraw the loan amount and fees directly from their bank account on the agreed-upon date.

Once the agreement is signed, the funds are disbursed quickly. At a physical storefront, a borrower can often receive cash within minutes. For online payday loans, the money is typically transferred via direct deposit and can be available as soon as the same or the next business day.

The True Price Tag: Deconstructing Payday Loan Costs

The way payday loan costs are presented can be misleading. Lenders typically advertise their price as a flat "finance charge" or "fee," which can make the loan seem more affordable than it truly is. This framing masks an exceptionally high cost of borrowing.

From Flat Fee to Shocking APR

The cost of a payday loan is usually a set dollar amount for every $100 borrowed, commonly ranging from $10 to $30. For example, a common fee is $15 for every $100 borrowed. For a $300 loan, the fee would be $45, meaning you must repay $345.

While a $45 fee might not sound alarming, its true cost is revealed when converted to an Annual Percentage Rate (APR). The formula is: APR=(LoanTerm in DaysLoanAmountFee​​)×365×100

Using the example of a $300 loan with a $45 fee and a 14-day term, the calculation is as follows:

1. Divide the fee by the loan amount: $45 / $300 = 0.15
2. Divide the result by the loan term in days: $0.15 / 14 = 0.0107
3. Multiply by 365 to annualize the rate: $0.0107 \times 365 = 3.91
4. Multiply by 100 to get the percentage: $3.91 \times 100 = 391\%

This results in an APR of nearly 400%, far higher than credit cards (12%-30%) or personal loans (6%-36%). This marketing strategy leverages a gap in financial literacy, making the product seem less expensive than it is.

The Compounding Costs of Failure

The initial finance charge is often just the beginning. If a borrower cannot repay the loan in full, a cascade of additional fees can be triggered.

• Rollover or Renewal Fees: In states where it is legal, lenders may offer to "roll over" the loan. This means the borrower pays another fee to extend the deadline, but the original loan principal remains unpaid. Using the same $300 loan, a rollover would mean paying another $45, totaling $90 in fees to borrow $300 for just four weeks, while still owing the full principal.
• Late Fees and NSF Fees: If the lender's attempt to collect payment is rejected due to insufficient funds, the lender may charge a late fee. Simultaneously, the borrower's bank will likely charge a non-sufficient funds (NSF) fee, often around $35.

The Debt Trap: Understanding the Significant Risks of Payday Loans

The most significant danger of payday loans is their potential to trap borrowers in a cycle of debt. This is not an accident but a predictable outcome of the product's fundamental design.

The Structural Flaw: An Unaffordable Repayment Model

The core problem lies in the requirement of a single, lump-sum repayment. The average payday loan repayment of $430 consumes about 36% of an average borrower's gross paycheck. However, most borrowers can only sustainably afford to part with about 5% of their paycheck and still cover essential living expenses.

This massive affordability gap makes it nearly impossible for the typical borrower to repay the loan on time, forcing them into a cycle of re-borrowing. Statistics from the Consumer Financial Protection Bureau (CFPB) and other researchers highlight this reality:

• 80% of payday loans are rolled over or followed by a new loan within 14 days.
• 75% of all payday loan fees are generated from borrowers who take out 10 or more loans per year.
• The average borrower is in debt for five months, paying over $520 in fees to repeatedly borrow just $375.

The product is marketed as a short-term fix, but its structure transforms a temporary liquidity issue into a long-term, expensive debt problem.

The Asymmetrical Impact on Your Credit Score

Another hidden risk of payday loans is their one-sided effect on your credit history.

• No Credit-Building Benefit: On-time payments for a payday loan are generally not reported to the three main credit bureaus. Therefore, responsibly repaying a payday loan does nothing to build a positive credit history.
• Significant Credit Damage on Default: If you fail to repay the loan and it is sent to a debt collector, the collection account is very likely to be reported. This can severely damage your credit score and remain on your credit report for up to seven years.

Additional risks include aggressive collection tactics and the significant emotional stress that comes with being caught in a debt trap.

A Head-to-Head Comparison: Payday Loans vs. Other Short-Term Options

When facing a cash crunch, it is critical to compare all available options. The table below provides a direct comparison of payday loans, personal loans, and credit card cash advances.

Feature	Payday Loan	Personal Loan	Credit Card Cash Advance
Typical APR	300% - 700%+	6% - 36%	20% - 30%
Loan Amount	$100 - $500 (up to $1,000 in some states)	$1,000 - $100,000	Limited by your card's cash advance limit
Repayment Term	2-4 weeks (lump sum)	1-7 years (fixed monthly installments)	Revolving (paid over time with monthly minimums)
Key Fees	Finance charge ($10-$30 per $100), Rollover fees, Late fees	Origination fees (0-8%), Late fees, Prepayment penalties (rare)	Transaction fee (3-5%), ATM fees, Higher interest rate
Credit Check?	No	Yes (hard inquiry)	No (but requires having the card)
Impact on Credit	Does not build credit; default hurts credit.	Builds credit with on-time payments.	Does not build credit; increases credit utilization.

The differences are stark. A personal loan offers a structured, affordable way to borrow over a longer period while building credit. A credit card cash advance, while still expensive, typically has an APR more than ten times lower than a payday loan.

Safer and More Affordable Alternatives to Payday Lending

Numerous superior alternatives to payday loans exist. These options are safer, more affordable, and can help improve your financial standing.

1. Credit Union and Bank Options

These traditional financial institutions offer regulated and affordable products.

• Payday Alternative Loans (PALs): Offered by federal credit unions, PALs are designed as a safe alternative with strict consumer protections.
• PAL I: Allows members to borrow $200 to $1,000. The APR is capped at 28%, the application fee is at most $20, and the term is one to six months.
• PAL II: Allows members to borrow up to $2,000 for up to 12 months, also with an APR cap of 28%.
• Small Personal Loans: Many credit unions and some banks offer small personal loans with much lower interest rates and predictable monthly payments that can help build your credit.

2. Modern Tech-Based Solutions

Financial technology has produced new ways to access funds quickly, though they require careful review.

• Cash Advance Apps (Earned Wage Access): Apps like Earnin, Dave, and Brigit allow you to borrow a small amount of your upcoming paycheck. Some are free but encourage optional "tips," while others charge a monthly subscription. While cheaper than payday loans, they can have fees for instant transfers and may trigger overdraft fees.

3. Employer-Based and Community Support

Your workplace and local community can be valuable resources.

• Employer Payroll Advances: Some employers offer programs that allow you to receive an advance on your earned wages, often at a very low cost or for free.
• Non-Profit Credit Counseling: Reputable agencies certified by the National Foundation for Credit Counseling (NFCC) offer free budget and debt counseling. They can help establish a Debt Management Plan (DMP) to negotiate lower interest rates and create a single, affordable monthly payment.
• Local Charities and Religious Organizations: Groups like The Salvation Army and St. Vincent de Paul often provide emergency assistance for essentials like rent, utilities, or food, which does not need to be repaid.

4. Other Financial Strategies

• Negotiate with Creditors: Contacting creditors directly can often lead to a payment plan or extension, which is far cheaper than taking out a loan.
• Borrow from Family or Friends: This can be a cost-effective option, but it's wise to create a formal, written loan agreement to protect the relationship.

Navigating the Rules: Your Rights and Protections as a Borrower

The regulatory landscape for payday loans is a complex patchwork of federal and state laws. Understanding these rules is essential for protecting yourself.

Federal Regulations

Several federal laws provide a baseline of protection for all borrowers.

• The Consumer Financial Protection Bureau (CFPB): The CFPB's "Payday Lending Rule" includes a Payment Provision that prevents lenders from attempting to withdraw payment from an account after two consecutive failed attempts without new authorization. This helps prevent multiple NSF fees.
• The Military Lending Act (MLA): This law provides robust protections for active-duty servicemembers, capping the Military Annual Percentage Rate (MAPR) on most consumer loans, including payday loans, at 36%.
• The Federal Trade Commission (FTC): The FTC takes action against payday lenders for deceptive advertising, unfair billing, and other violations.

State-Level Regulations: A Case Study in California

Most direct regulation happens at the state level. California, for example, has relatively strict consumer protections under its California Deferred Deposit Transaction Law (CDDTL):

• Loan Amount Cap: The total loan amount cannot exceed $300.
• Fee Cap: The maximum fee is 15% of the check's value, up to $45.
• Rollovers Prohibited: California law forbids lenders from rolling over an existing payday loan.
• Other Protections: Lenders cannot issue a new loan to pay off an existing one, can only charge a single $15 bounced-check fee, and are prohibited from threatening criminal prosecution.

How to Protect Yourself

Regardless of your state's laws, you can take these steps to protect yourself:

1. Verify the Lender's License: Before providing any personal information, confirm that the lender is licensed to operate in your state. Most states have an online database, like California's DFPI financial services search tool.
2. Beware of Scams: Be wary of unsolicited offers and never pay an upfront fee to receive a loan. Legitimate lenders do not require a fee before you receive your funds.
3. File a Complaint: If you believe a lender has violated the law, you can file a complaint with the federal CFPB (https://www.consumerfinance.gov/complaint/) and with your state's attorney general (http://www.naag.org/naag/attorneys-general/whos-my-ag.php).

Conclusion: Choosing Financial Stability Over a Quick Fix

Payday loans present a paradox. They offer a simple, rapid solution to an immediate financial problem, yet their very structure is engineered to create a much larger, long-term crisis. The allure of fast cash can easily obscure the reality of triple-digit APRs and a risky repayment model.

The evidence is clear that the short-term relief is rarely worth the long-term financial damage. The cycle of renewing loans and paying fees that don't reduce the principal can turn a single cash shortfall into months or even years of financial struggle.

However, being in a tight financial spot does not mean you are out of options. A wealth of safer, more affordable, and more constructive alternatives exists. From regulated Payday Alternative Loans (PALs) to free guidance from non-profit credit counselors, there are pathways that lead toward financial stability, not deeper into debt. Making an informed choice is the most critical step toward building a more secure financial future.

Frequently Asked Questions

When facing a financial emergency, the pressure to find quick cash can be overwhelming. While traditional payday loans promise a fast solution, their triple-digit interest rates and crushing repayment terms often lead to a devastating cycle of debt.

Fortunately, there is a safer, more affordable path: payday alternative loans (PALs). Offered exclusively by federal credit unions and regulated by the National Credit Union Administration (NCUA), PALs are designed to provide members with the short-term funds they need without the predatory risks. This resource provides a clear, detailed breakdown of how these loans work, how they compare to their high-cost counterparts, and how you can access them.

The Safer Solution for Short-Term Cash Needs

In the landscape of short-term lending, the source of the loan is as important as its terms. Payday alternative loans stand apart because they originate from a fundamentally different type of financial institution—one built on a philosophy of member service rather than profit maximization.

What is a Payday Alternative Loan (PAL)?

A Payday Alternative Loan (PAL) is a small-dollar, short-term loan offered by certain federal credit unions. They were created to serve as a responsible lifeline for individuals who need to bridge an unexpected financial gap, such as a car repair or a medical bill, without resorting to high-cost payday loans.

The entire structure of a PAL is designed to prevent the "debt trap"—a cycle where borrowers are forced to take out new loans to pay off old ones. This cycle is notoriously common with traditional payday lenders, whose business model often relies on the loan being unaffordable for the borrower. This unaffordability leads to repeat borrowing, or "churning," which generates significant fee revenue for the lender but keeps the borrower in a prolonged state of expensive debt.

Recognizing this market failure, the National Credit Union Administration (NCUA) proactively established the PAL program. It empowered credit unions to compete directly with predatory lenders by offering a product that is structurally safe, affordable, and regulated. Therefore, a PAL is not merely a "cheaper loan"; it is the tangible result of a financial philosophy that prioritizes consumer protection.

The Credit Union Difference: Why the Lender Matters

PALs are offered exclusively by federal credit unions, and this is a critical distinction. Unlike banks, which are for-profit corporations accountable to shareholders, credit unions are not-for-profit financial cooperatives. They are owned and controlled by their members—the very people who save and borrow there.

This cooperative structure fundamentally changes the institution's motivation. Instead of maximizing profits for outside investors, a credit union's primary goal is the financial well-being of its members. Any surplus revenue is returned to members through lower interest rates, higher dividends, and reduced fees.

This member-first philosophy is the bedrock of the PAL program. The loan is designed to be a helpful tool, not a revenue-generating trap. To further this mission, many credit unions also offer free financial counseling services to help members address the root causes of their financial shortfall and build a more stable future.

The Regulatory Framework: Understanding PAL I and PAL II

A key feature that makes PALs a safe option is that they are strictly regulated by the National Credit Union Administration (NCUA), an independent agency of the U.S. government. This federal oversight provides a powerful layer of consumer protection that is often absent in the state-by-state patchwork of payday loan regulations.

To meet varying member needs, the NCUA created two distinct versions of the loan program: PALs I, established in 2010, and PALs II, established in 2019.

PAL I: The Original Framework

The PALs I rule was the NCUA's initial framework designed to provide a viable alternative to predatory payday loans. Its features are tightly controlled to ensure affordability and protect the borrower.

• Loan Amount: The loan principal must be between $200 and $1,000.
• Loan Term: The repayment period must be between one and six months.
• Maximum APR: The Annual Percentage Rate (APR) is capped at 28%. This rate is inclusive of all finance charges, with no hidden fees.
• Application Fee: A credit union may charge a non-refundable application fee that cannot exceed $20.
• Membership Requirement: To qualify for a PAL I, an individual must have been a member of the credit union for at least one month.

PAL II: Increased Flexibility

After several years, the NCUA gathered feedback and recognized that some members needed slightly larger loans or more time to repay. In response, they introduced the PALs II rule in 2019 to provide credit unions with more flexibility while maintaining core consumer protections.

• Loan Amount: The loan principal can be for any amount up to $2,000, with no minimum.
• Loan Term: The repayment period can be between one and twelve months.
• Maximum APR: The strict 28% APR cap remains in place.
• Application Fee: The application fee is still capped at a maximum of $20.
• Membership Requirement: The one-month waiting period is eliminated. A credit union can offer a PAL II to a new member immediately.

The evolution from PAL I to PAL II demonstrates a responsive regulatory approach. The NCUA actively monitored its program's effectiveness, identified limitations, and iterated to improve it, reinforcing that the system is designed to genuinely serve consumer needs.

Core Consumer Safeguards (Applicable to Both PAL I & PAL II)

Beyond the specific terms of each program, the NCUA has embedded several critical safeguards into all PALs to protect borrowers.

• No Rollovers: A PAL can never be "rolled over" by paying a fee to extend the due date. This practice, the cornerstone of the payday loan debt trap, is explicitly forbidden.
• Full Amortization: Every PAL is paid back in roughly equal installments of principal and interest. This avoids the single, massive "balloon payment" required by most payday loans.
• Limits on Borrowing Frequency: A member can only have one PAL at a time and cannot be granted more than three PALs within any rolling six-month period.
• No Overdraft Fees (PALs II Specific): For PALs II loans, credit unions are prohibited from charging overdraft or Non-Sufficient Funds (NSF) fees related to a scheduled loan payment.

Feature	PAL I Regulations	PAL I Regulations
Loan Amount	$200 to $1,000	Up to $2,000 (no minimum)
Maximum APR	28%	28%
Loan Term	1 to 6 months	1 to 12 months
Application Fee	Up to $20	Up to $20
Membership Requirement	Minimum 1 month	None (at credit union's discretion)
Rollovers Allowed?	No	No
Number of Loans Allowed	Max 1 at a time; Max 3 in 6 months (combined with PAL II)	Max 1 at a time; Max 3 in 6 months (combined with PAL I)

Payday Alternative Loans vs. Traditional Payday Loans: A Critical Comparison

The differences between a PAL and a traditional payday loan represent two opposing approaches to lending. One is designed for consumer success, while the other is often profitable only through consumer struggle.

The Cost of Borrowing: APR and Fees

The most dramatic difference lies in the cost.

• PALs: The cost is transparent and capped at a maximum APR of 28%. A $500 loan repaid over six months at 28% APR would cost about $43 in total interest. The only other potential charge is a one-time application fee of up to $20.
• Payday Loans: The cost is exorbitant. A common fee of $15 per $100 borrowed on a two-week loan translates to an APR of 391%. Some payday loan APRs can soar even higher.

The Repayment Structure: The Path to Success vs. The Debt Trap

How a loan is repaid is a critical factor in whether a borrower succeeds or fails.

• PALs: Repayment is structured in manageable, equal installments over one to twelve months. This predictable schedule allows a borrower to budget for payments and systematically pay down the debt.
• Payday Loans: Repayment is typically demanded in a single, lump-sum "balloon payment" on the borrower's next payday. This can consume a huge portion of a paycheck, making it nearly impossible to cover the loan and other essential expenses, forcing many to "roll over" the loan and sink deeper into debt.

The Lender's Business Model: Member Success vs. Borrower Failure

The fundamental goals of the lenders are worlds apart.

• PALs (Credit Unions): As not-for-profit cooperatives, their mission is to promote the financial health of their members. A PAL is successful when the member repays it and improves their financial standing.
• Payday Lenders: Research shows that the profitability of many payday lenders depends on repeat borrowing from customers trapped in a cycle of debt. The business model can succeed precisely because the initial loan is unaffordable.

The choice is between a supportive or a predatory financial ecosystem. Obtaining a PAL means joining a credit union that often provides access to other beneficial products, including free financial counseling and savings programs. In contrast, a payday loan is a purely transactional encounter with a lender who has no vested interest in the borrower's long-term financial stability.

The Impact on Your Credit Score

• PALs: Credit unions generally report PAL repayment activity to the major credit bureaus. Consistent, on-time payments can build a positive payment history and improve a borrower's credit score over time.
• Payday Loans: Payday lenders typically do not report positive payment information. However, if the loan becomes delinquent and is sent to a collection agency, that negative mark will almost certainly be reported, causing significant damage to the borrower's credit score.

Feature	Payday Alternative Loan (PAL)	Traditional Payday Loan
Lender Type	Not-for-profit Federal Credit Union	For-profit private lender
Governing Body	National Credit Union Administration (NCUA)	Varies by state; often loosely regulated
Maximum APR	28% (hard cap)	300% - 400%+ (typical)
Typical Loan Amount	$200 - $2,000	$500 or less
Repayment Term	1 - 12 months (installments)	2 - 4 weeks (single lump-sum)
Fee Structure	Max $20 application fee	High fees per $100 borrowed; rollover fees
Rollovers/Renewals	Prohibited	Common and encouraged
Credit Bureau Reporting	Yes (positive payments can build credit)	No (positive payments don't build credit)
Primary Goal	Member financial stability	Lender profit, often via repeat borrowing

How to Qualify for and Secure a Payday Alternative Loan

The process of getting a PAL is straightforward, but it requires a few key steps. While it is more involved than walking into a payday loan store, that extra effort provides immense protection and savings.

Step 1: Find a Credit Union That Offers PALs

The first step is locating a participating credit union. While the NCUA authorizes all federal credit unions to offer PALs, not all of them choose to do so. Use the NCUA’s official Credit Union Locator tool to find credit unions in your area. Then, visit their websites or call them directly and ask specifically if they offer "Payday Alternative Loans" or "PALs".

Step 2: Become a Member

You must be a member of the credit union to receive a PAL. Each credit union has a "field of membership," which defines who is eligible to join based on criteria like:

• Geography: Living or working in a specific city or county.
• Employer: Working for a particular company or industry.
• Association: Belonging to a certain group, like a union or alumni association.

The joining process is usually simple and often involves filling out an application and making a small opening deposit (often just $5 to $25) into a savings account.

Step 3: The Application Process

Once you are a member, you can apply for the PAL, often online. Be prepared to provide standard documentation to verify your identity and ability to repay the loan, such as:

• A valid, government-issued photo ID.
• Proof of income, like recent pay stubs.
• Proof of address, like a utility bill.

You will also need to pay the non-refundable application fee (up to $20) if the credit union charges one.

Addressing the "Bad Credit" Concern

It is vital to understand that PALs are specifically designed to serve members who might not qualify for traditional bank loans. Credit unions are often more interested in your overall financial picture, like your income and employment stability, than just a three-digit score.

In fact, some institutions have structured their PAL programs to bypass credit checks entirely. For instance, All In Credit Union states its PAL product involves "No credit report review," and Kit Federal Credit Union offers its version "regardless of credit score". These examples show that a bad credit score is not necessarily a barrier to securing this safer form of credit.

Beware of "Look-Alikes" and Predatory Online Lenders

As consumers have become more aware of the dangers of payday loans, high-cost online lenders have begun to co-opt the "payday alternative" language to make their predatory products seem safer. These lenders use phrases like "no credit check" and "instant approval" to attract vulnerable borrowers, but they are not federally regulated PALs and often have triple-digit APRs.

This creates a significant risk of confusion. To protect yourself, remember these two rules:

1. A true Payday Alternative Loan is only offered by a credit union.
2. A true PAL will always have a maximum APR of 28%.

Any product that does not meet both of these criteria is not a PAL and should be approached with extreme caution.

When a PAL Isn't an Option: Other Responsible Alternatives

While PALs are an excellent option, they may not be accessible to everyone. If a PAL is not the right fit, you still have many other responsible alternatives to a traditional payday loan.

Before You Borrow: Non-Loan Solutions

The cheapest solution often involves avoiding a new loan altogether.

• Negotiate with Creditors: Contact the company you owe money to. Many are willing to set up a payment plan or grant a temporary deferment if you communicate with them proactively.
• Community and Government Assistance: Nonprofits like The Salvation Army and local Community Action Agencies can provide grants for rent, utilities, or food that do not need to be repaid.
• Employer Paycheck Advance: Some employers offer programs that allow you to receive an advance on your earned wages. This is not a loan and typically comes with no interest.

Other Low-Cost Borrowing Options

If you still need to borrow, consider these other avenues.

• Small-Dollar Bank Loans: Some large banks, like Bank of America and U.S. Bank, now offer their own small, short-term loans to existing customers with low, flat fees.
• "Bad Credit" Personal Loans: Many online lenders and credit unions offer personal loans for individuals with poor credit. While the APR may be higher, it is almost always capped at 36%—more than ten times cheaper than a typical payday loan.
• Credit Card Cash Advance: This is an expensive way to borrow, with high APRs and fees. However, it remains a dramatically more affordable option than a 400% APR payday loan.
• Borrowing from Family or Friends: This can be an interest-free option but carries the risk of damaging relationships. Always put the agreement in writing, clearly stating the loan amount and repayment schedule.
• Paycheck Advance Apps: Apps like Earnin or Dave allow you to access a small portion of your earned wages before payday. They typically charge a small subscription fee or an optional "tip" instead of interest, making them a very low-cost option.

Frequently Asked Questions