Peoples Bank is proud to introduce CreditUp!
What is CreditUp?
CreditUp is a loan program in which small, short-term loans are made to individuals seeking to improve their credit score, begin saving, or break the cycle of high-cost, payday-type borrowing.
The program is designed such that the loan amount and terms are predetermined based on the applicant’s credit score at the time of application. The program is only available to those who have completed a CreditUp financial literacy class, presented by Peoples Bank.
Individuals with credit difficulty come in all shapes, sizes and races. There is no limit to the number of different circumstances that lead a person into credit trouble. Whether one is born into poverty and hasn’t been able to move up due to a lack of opportunity, been a victim of uncontrollable circumstances that have resulted in the loss of a job or assets, or perhaps just one who is living with the consequences of poor decisions, the result is the same: a persistent battle to scrape enough together to make ends meet.
As a certified Community Development Financial, Peoples Bank wants to be the one extending a helping hand and pulling with our financial strength to help those struggling financially in our community get their foot on the first rung on the financial ladder.
How CreditUp works
The CreditUp program has three major components:
- FINANCIAL LITERACY-Prior to receiving a CreditUp loan, all participants must complete a financial literacy class provided by Peoples Bank. The curriculum is designed to provide a basic understanding of banking functions, highlighting the benefits of using Peoples Bank rather than predatory credit sources. Classes last roughly an hour and are presented by Peoples Bank lending staff. Applicants can register for classes on a first come, first serve basis until full.
- CREDIT SCORE BASED-Each applicant will receive a loan based on their current credit score. Loan amounts will range from $500 - $2000 and have terms ranging from 12 – 24 months. The lower the score, the lower the loan amount for which an applicant will qualify. The terms options for each loan are predetermined, depending on the applicant’s Trans Union credit score.
- TIED TO DEPOSIT ACCOUNT-Each borrower will be required to have a savings account. Checking accounts will be strongly encouraged, but optional. For the lowest credit score category (499 or less), all loan proceeds will be held in a savings account. For all other credit score categories, a percentage of the proceeds will be held in a savings account, based upon credit score. A borrower may withdraw up to half of the amount held in savings upon reducing principal balance of their loan to an amount equal to or less than half of the amount held in savings.
Program Rules and Requirements:
- Applicant must be at lease 18 years old at the time of loan closing.
- Certificate of Completion from Financial Literacy class must be presented when applying for a CreditUp loan. Classes are only open to those who have pre-registered and are over 18 years of age. Please make other arrangements for childcare.
- Normal Customer Identification Procedures are required.
- All CreditUp applicant are subject to review and must meet all CreditUp underwriting criteria to receive loan. (Contact a CreditUp officer at your local branch for additional underwriting criteria)
- Proof of at least one (1) of the sources of income listed below is required (Source of income must no older than one month):
- Pay stubs
- Proof of Social Security Check
- Proof of Disability Check
- Recent Bank Statement
- Tax Return
- All borrowers must open a CreditUp Savings account. All or part of the loan proceeds received (based on credit score) will be held in the borrower’s CreditUp Savings account as collateral against their loan.
- A CreditUp Checking account is encouraged, but optional. If they already have a checking and/or savings account, the accounts must be converted.
- Borrowers will be eligible for additional CreditUp loans (up to a total of 4) upon satisfactory pay off of existing CreditUp loan.
- All checking accounts will have a standard, no overdraft requirement.
- Standard returned item charges apply to all CreditUp checking accounts.
- Borrower may withdraw up to one half (1/2) of the funds held in their CreditUp Savings account after the principal balance of the loan reaches or is below one half of the initial amount held in savings. For example, if my credit score is 560 and I borrower $1,000, $500 of loan proceeds are placed in savings and held as collateral at the time of the loan. When the loan principal is paid down to $250 (or half of $500), I may withdraw up to $250 from my savings and the remaining $250 will remain held in savings until the loan is paid off.
- Only one (1) early withdrawal is allowed over the life of the loan, unless the second withdrawal is made to pay the loan off in full.