Know That You are More Than Your Credit Score
We understand that credit scores are biased against certain communities. As a Community Development Financial Institution (CDFI), we assess your financial situation a little differently than most financial institutions do. Our purpose is to help you find solutions, even if you have had credit issues in the past. All of our loan officers are certified financial counselors and have the tools and resources to guide you on a path towards your financial goals.
Before applying for a loan, it’s essential to know what is on your credit report, whether it is accurate, and how to handle any negative information. We understand this step might be a little nerve racking but remember we’re here to help you, not judge you.
Check Your Credit Report
Our non-profit partner, Balance, will provide you a free credit report review. This is an excellent opportunity to clear up any errors that may be affecting your score and have an expert walk you through the report. Call 888-456-2227 or check them out online.
Federal law also gives you free access to your credit reports from the three major credit bureaus: Equifax, Experian and TransUnion. Access your reports through the government-mandated AnnualCreditReport.com. Those reports are available weekly to help you manage your finances.
If you have no credit history at all, we can help you establish one with our Credit Score Builder loan that features automatic approval.
Explore Financial Solutions
Use PowerPay to organize your debts and look at various payment options to help eliminate your debt quicker. PowerPay is brought you at no cost through the Utah State University Extension.
Our non-profit partner, Balance, also offers a Debt Management Plan (DMP). A DMP can offer lower interest rates, a cessation of certain fees, and lower required monthly payments. They will work directly with your creditors on your behalf. Call 888-456-2227 or check them out online (there is a fee for this service but Balance charges the minimum mandated by New York State).
Additionally, Balance offers webinars and online tools and we also have the Banzai! Wellness Center. Each of these platforms offer personal finance education, calculators articles and interactive guidance to help you understand and manage your money.
Consider a Secured Loan Instead of an Unsecured Loan
With a secured loan, an asset (called collateral) secures the loan. Because of this security, the lender assumes minimal risk – if you miss a certain number of payments, they can take the collateral.
An unsecured loan (or signature loan) doesn’t require anything from you as security (just your signature). There is a considerable amount of risk on the lenders part, because if you fail to pay, they have to take legal action to recoup the money they lent. This is why an unsecured loan generally carries a higher interest rate than a secured loan.
People with credit issues can bolster their application at Alternatives by offering collateral such as the equity in a car (2015 or newer) or a home. A co-applicant can also strengthen an application and make it easier for approval.
Be Aware That Your Debt-to-Income Ratio (DTI) is an Important Factor
Your DTI is calculated to determine the burden that additional debt could cause you. As a Federally regulated financial institution, responsible lending guidelines require that we prove your loan will help you and not leave you in a worse financial situation.
A loan officer will calculate your DTI and let you know what you can do to increase your loan-readiness.
Demonstrate an Account in Good Standing
Having an active account in good standing is another way to enhance your financial profile. It can show you have a consistent income and the ability to pay bills over time which can improve your chances of loan approval.
Get started with a $2 membership fee and a $5 minimum deposit.
We know that almost a third of U.S. adults have no emergency savings at all (Bankrate, 2024), so we would like to help you start a savings account. This would show some flexibility when unexpected expenses occur.
Our Lucky Savers account is a prize-based savings account with monthly cash prizes for saving your own money (start with just $25)! Simply open your personal account and then submit a request through online banking to add a Lucky Savers account.