Compare legal limits, fees and the true cost of small loans in your state before you talk to any lender. Compare legal limits, fees and the true cost of small loans in your state.
Credit Unions vs Payday Loans in Worcester, MA
5 credit unions are headquartered in Worcester, with 98,409 members in total. Credit unions are member-owned and often offer small personal loans and payday alternative loans (PALs) at far lower rates than payday lenders.
- Credit unions
- 5
- Members
- 98,409
- Federal
- 2
- State-chartered
- 3
Credit unions vs payday loan stores in Worcester
Worcester has 5 credit unions headquartered here and just 1 payday, installment or title loan store. Local credit unions count 98,409 members — roughly 48 memberships per 100 residents.
Credit unions
5
2.4 per 100k residents
98,409 members
Payday & loan stores
1
0.5 per 100k residents
1 store chain
Biggest loan store chains in Worcester: loanDepot (1).
Borrowing $500 for 6 months in Worcester
| Option | Payment | Total cost of borrowing |
|---|---|---|
| Installment loan at the Massachusetts rate cap (23% APR) | $89.01/mo | $34.07 |
| Credit union PAL (28% APR) | $90.27/mo | $41.62 |
| Payday loan renewed every 2 weeks (typical $15 per $100, not available in Massachusetts) | $75.00 every 2 weeks | $975.00 |
- Monthly payment at the Massachusetts rate cap vs median monthly household income
- 1.6%
Example calculation with fixed monthly payments; the payday row shows typical out-of-state pricing for comparison. Actual rates and terms vary by lender.
What it means for a household in Worcester
- Median household income
- $67,748
- A $400 emergency equals
- 2.2 days of income
- Households earning under $25,000
- 21.9%
- Residents below the poverty line
- 20.2%
Income and poverty: U.S. Census Bureau, American Community Survey, by ZIP code; figures for Worcester are population-weighted and approximate. Hours of work are based on the median individual income.
Payday loans vs credit union PALs: the rules in Massachusetts
| Payday loan in MA | Credit union PAL | |
|---|---|---|
| Legal status | Not allowed — storefront payday loans are banned | Offered by many federal credit unions |
| Rate cap | Capped at 23% APR | Up to 28% |
| Term | Usually 2–4 weeks, due in one payment | 1 to 12 months, in installments |
| Credit check | Usually none; a bank account and income are required | Membership required; payments can be reported to credit bureaus |
Payday rules: Massachusetts law as summarized on our Massachusetts payday page. PAL rules: National Credit Union Administration (NCUA) rules for federal credit unions (PAL I and PAL II); state-chartered credit unions may offer similar small loans.
Credit unions headquartered in Worcester
| Credit union | Address | Members | Website |
|---|---|---|---|
| Webster First Federal Credit UnionFederal | 271 Greenwood St, P O Box 70505 Worcester, MA 01607 | 84,905 | websterfirst.com |
| Worcester Credit UnionState-chartered | 520 W Boylston St Worcester, MA 01606 | 6,355 | worcestercu.com |
| Allcom Credit UnionState-chartered | 36 Park Ave Worcester, MA 01609 | 3,823 | allcomcu.org |
| Worcester Fire Dept. Credit UnionState-chartered | 34 Glennie St Worcester, MA 01605 | 2,058 | wfdcu.org |
| Worcester Police Department Federal Credit UnionFederal | 805 West Boylston Street Worcester, MA 01606 | 1,268 | wpdfcu.com |
Payday and installment loan stores in Worcester
For comparison: storefront payday, installment and title lenders in Worcester with addresses, phone numbers and hours. Check a credit union first — a PAL or small personal loan usually costs far less.
| Address | Phone | Hours | Google rating |
|---|---|---|---|
| 898 Grafton St Worcester, MA 01604 | (508) 735-8767 | — | 3.0 |
More about Worcester
Only credit union headquarters are listed, with the address on file with the NCUA; phone numbers and branch locations are on each credit union’s website. Many credit unions also have branches in Worcester and nearby — check membership requirements, as some are open to anyone who lives or works in the area. Loan stores: storefront locations of major payday, installment and title lenders; call ahead to confirm hours.