Did you Know…
- The average payday loan term is about two weeks, with finance charges ranging from $15 to $30 for every $100 borrowed?
- The average APR for payday loans is 400% and for some of the most common two-week loans this can be as high as 780%?
- For every $1 you borrow using a two-week payday loan you have to repay roughly $8?
Here at True Sky Federal Credit Union we do things differently. That’s why we are proud to offer a replacement for the traditional payday loan with our Borrow and Save program. Borrow and Save is True Sky’s way of helping you avoid or break away from the cycle that traditional payday loans trap people in through their interest rates and repayment terms. “The True Sky Borrow and Save Loan provides emergency cash when a person needs it, at a much, much lower rate than a PayDay loan shop. It has a special component that takes 25% of the loan amount and pledges it in your savings account until the loan is paid off. That way, if another unexpected expense occurs, you can use your savings account to help with it, rather than going and getting another loan. I know that may sound counterintuitive from a lending institution, but we are truly here to help people.” – Sean Cahill, CEO of True Sky Federal Credit Union What makes Borrow and Save different? All Borrow and Save loans have a flat interest rate of 18% APR and repayment periods from 6 months to one year depending on the amount borrowed. Additionally, 25% of the money borrowed is deposited on hold in a savings account that you have access to when the loan is fully repaid. This is done to help you build a strong foundation of personal savings that we hope will help you not need future payday loans. Qualifying for a Borrow and Save loan is different from our other loans. Borrow and Save loans do not carry a credit score requirement, in fact we do not pull your credit at all. You must be a member of True Sky Federal Credit Union and have had your True Sky account in good standing for 60 days meaning that:
- You are current on all existing loans, no late or outstanding payments
- None of your accounts are overdrawn
Other than this we require one of the following documents
- Last 2 pay stubs
OR
- 2 months deposit history
OR
- Last 2 years tax returns
Borrow and Save loans follow a ‘stair step’ system where obtaining and repaying the first amount qualifies you to borrow the second, obtaining and repaying the second amount qualifies you to borrow the third. Please note that there is a $20 loan application fee that will be deducted from the loan proceeds.
- $500 ($355 available immediately with $125 on hold in savings) with a 6 month repayment period
After repayment you qualify for…
- $750 ($542.50 available immediately with $187.50 on hold in savings) with a 9 month repayment period
After repayment you qualify for…
- $1,000 ($730 available immediately with $250 on hold in savings) with a 1 year repayment period
