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Through Lending
Payday Loan Alternatives

A typical payday loan is a small (average size is $350) short-term cash loan with an average term of 14 days, and generally has a fee per $100 borrowed, resulting in triple digit interest rates. Many consumers cannot afford to repay the entire debt and are forced to roll the loan over with new fees.

The users of payday loans are not who you think. They have bank accounts, may be homeowners (42%), are often under the age of 45, are women with children at home (62%), and are of low-to-moderate income – 50% have incomes from $25,000 to $50,000. Why should credit unions care?

An estimated 15 to 20% of credit union members are using, or have used, a payday loan product sometime within the past five years. Members often get caught in a cycle of debt, making it difficult to honor obligations – such as credit union loans – or to save for the future. 

Credit unions can offer an affordable payday loan alternative that is also sustainable for the organization. Hundreds of credit unions provide their members affordable solutions.

To learn more ... 
>Download the REAL Solutions Payday Loan Alternative Toolkit
Subprime Auto Loans

Thinking about expanding your auto loan portfolio? If more credit unions loaned to members with FICO scores below 600, their market share would expand by 15%.

Watch a free webinar that focuses on loan products that credit unions are using to serve members with FICO scores below 600 while minimizing risk and enhancing the credit union’s bottom line.

Download a worksheet for creating a lending program tailored to low-score borrowers.

Through Affordable Loans

Cincinnati Central CU helps members address life changing situations through affordable loan terms and interest rates.

 
Through Short-Term Loans

Hear how Day Air CU offers small, short-term loans to help members save money by providing pay day loan alternatives.




Nueva Esperanza Community CU solves members' financial issues with small, short-term loans.

Through Refinancing

Hear how Classic FCU used refinancing as a means to consolidate debt, helping members tackle their debt and manage their finances.