Responsible Lending Disclosure
Payday loans are high-cost, short-term products. They may help with a temporary emergency, but they can also worsen financial stress if used repeatedly or without a clear repayment plan.
Do not borrow if any of these are true
- You need the loan to repay another payday loan.
- You cannot repay the full amount by the due date without missing rent, utilities, food or medication costs.
- The lender will not clearly disclose APR, finance charge, due date and total repayment amount.
- The lender asks for an upfront fee by gift card, wire transfer or cryptocurrency.
- The lender says approval is guaranteed regardless of income, state law or ability to repay.
Affordability checklist
| Question | Responsible answer |
|---|---|
| Can I repay the full amount on the due date? | Yes, without taking another loan or overdrawing my account. |
| Do I understand the total repayment amount? | Yes, including finance charge, APR, due date and possible late fees. |
| Have I checked lower-cost alternatives? | Yes, including credit union PALs, payment plans, employer advance and local assistance. |
| Is the lender licensed in my state? | Yes, verified through the state regulator or official database. |
Alternatives to consider first
- Credit union Payday Alternative Loan (PAL).
- Employer payroll advance or earned wage access program.
- Payment plan with utility company, landlord, medical provider or creditor.
- Local nonprofit, church, community action agency or 211.org assistance.
- Small-dollar installment loan with a lower APR and longer repayment term.
- Debt counseling through the National Foundation for Credit Counseling.