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.
Why credit up?
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 Credit up works
The CreditUp program has three major components:
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.
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.
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:
Proof of Social Security check
Proof of Disability check
Recent bank statement