Payday Loans for Federal Employees


written by

Ana Gotter
January 21, 2022

Federal jobs are, in general, considered to be highly desirable. They often come with outstanding job security and great benefits. Federal employees may also have additional perks, like payday loans that are offered specifically for them.

What Are Payday Loans?

Payday loans are an increasingly popular type of short-term, low-amount, high-interest loan that’s designed to hold you over until the next payday if cash is immediately tight right now. It’s based on your pay, and it can be readily available same-day.

As soon as your loan is approved, the money can arrive in your bank account through direct deposit if you accept the loan terms. You’ll know exactly what the interest will be and how much it will cost, so there are no surprises when you repay the loan amount (typically a week or two later).

Why Would Federal Employees Choose Payday Loans?

Federal employees might choose payday loans for the same reason everyone else would— they find themselves short on cash for any number of reasons, including unexpected or forgotten expenses.

If you find yourself needing a small amount of cash and wishing that your paycheck would arrive a few days early, payday loans were designed for that exact scenario.

Pros & Cons of Payday Loans for Federal Employees

There are both advantages and disadvantages to consider when federal employees are considering payday loans.

The pros are:

  • You can receive money fast, often same-day or next-day
  • The application process is straightforward and short (as opposed to personal loans which can take much longer)
  • The loan amounts are low so you’re less likely to get in over your head
  • You’ll know exactly how much you’ll pay in interest upfront
  • Short term loans can be easy to track and manage
  • Payday loans don’t check your credit or impact credit

And the cons:

  • The high interest rates are high, around $15 per $100 borrowed, which amounts to a nearly 400% APR
  • Many people who use payday loans can end up trapped, relying on the next payday loan because they’re short on cash due to the funds from the previous payday loan

Before taking out a payday loan, review your options to see which option works best for you. If you truly need fast cash one-time, a payday loan for federal employees could work in your favor, but watch out for the high interest and short repayment terms.