PD loan alternatives

Credit unions are offering "Better Choice" loans that are like pd loans.
I got one from my credit union.
No credit check, a limit of $500.00, and 7 pay periods to pay it back.
I only paid $509. for a $500. loan.
I live in PA.

My credit union offered something called Xtracash loans.

But to me it seems like the same as a Pd loan.

I can't seem to post the link.

It is kind of like a payday loan.
It's paid on a biweekly basis when you get paid.
It's for over 7 pay periods.
BUT..........I only paid under 10.00 in interest on $500!
These loans are in no way like a payday loan from the money mongers online.

that sounds like a great option! i am sure people can still get in trouble with it if they do it non-stop :( but if you are in a bind, it is way better than payday loans with high interest rates.

I've never heard of THIS kind of loan. I'm not a 'memeber' at the Credit Union here and I don't think my bank has anything like that, either. Is there somewhere, on the Web, where I can find information on this? Not quite as much % as a 'regular' PDL, it seems.

A number of banks are offering these.

However they often misrepresent the actual apr.. US bank offers a checking advance but you must have direct deposit. They charge $10 per 100 borrowed and claim that the APR is 120%. That would be the case if you were only paid monthly. The kicker is that they debit your account as soon as any deposit over $100 is made. If you request an advance the day prior to your direct deposit, they will still debit the entire amount plus fee the very next day. The APR on that loan would be 3650%.

Just because it comes from a bank does not mean it is a better mousetrap..

i have known people in pa who have taken them and only paid maybe $15 for $500 borrowed. Anytime money is borrowed could lead to trouble, but i do not think this can be compared to payday loans and their methods.
i do not think they do this in my state (NJ) but i have known pa residents who are happy with this..