Low rates on payday loans are available through credit unions in San Francisco. Mission SF Federal Credit pioneered the Lifesaver Loan, which charges only 18% APR, will give you 6 months to pay it back and allow you to build your credit history. In contrast to the Lifesaver Loan, typical payday loans are 460% APR, the repayment period is 2 weeks, and does not build your history. The low rates on payday loans are now marketed by 5 other credit unions in San Francisco under the Payday Plus SF program.
Low rates on payday loans are important for a number of reasons. Many struggling families must take out a number of them in a row and end up paying thousands in fees and interest. Payday loan outlets are so successful that there are now locations in California than McDonald’s and Starbucks outlets, combined. For a $500 loan, the annualized interest rate is about 460% APR. Second, the typical note must be paid off in 2 weeks, which does not give struggling families time to adjust.
If you live, work or associate in the San Francisco Mission District, go and see Mission SF FCU. They will even pay you back $50 in your account if your loan is repaid on time. If you are not near the Mission District, there are 13 locations of 5 different credit unions (Northeast Community FCU, Patelco Credit Union, Redwood Credit Union, San Francisco FCU, and Spectrum FCU). that also market the low rates available through the PaydayPlus Program. If you do not live in San Francisco, check with your local credit union about low rates . These unions are member-owned, and often non-profit organizations that work for the community and are more likely to provide low rates.