CU Intro's Payday Loan Alternative
Unitus Community Credit Union has become the latest credit union to roll out a payday lending alternative for members. Called the "Advance Loan," the product allows eligible members to borrow from $50 to $500 on a repayment plan of one month for each $100 borrowed. Unlike payday lending sources, the credit union noted it does not require members to pay back the loan amount in full within one pay period-members have up to three months to repay the amount borrowed.
"We are hoping to stem the number of times a borrower 'rolls over' their debt by allowing them to make small, affordable monthly payments," said Paul Kirkbride, VP of credit services with UCCU.
Members who qualify are being invited to attend a free "Understanding Your Credit" seminar. Qualification criteria include completing one application, in person, and providing a recent pay stub or other evidence of income (such as a social security statement), a photo ID and the name, address and phone number of a personal reference.
For additional information on Unitus Community Credit Union, visit www.unitusccu.com.