Credit Building
A Credit Connection Loan
The Credit Connection Loan is a small-dollar loan program designed to help a family meet a financial need during a financial crisis. This loan will help you build positive credit, which will aid in securing your financial future. Brighton Center offers support by providing financial education and one-on-one coaching, while Central Bank provides underwriting for the loan. Those who access this program will receive a loan of up to $3,500, with the loan term and interest rate determined upon application.
What to Bring:
· Money Talk Certificate
· Proof of 6 months of employment
· 3 credit sources -- One with 12 months of payment history and Two with 6 months of payment history, which can include:
- cell phone
- rent
- utilities
- credit card
- car
· Most recent pay stubs
· Previous year’s W2
· Photo ID
Why We Do It
According to the Federal Reserve, 47% of adults ages 18029 received help from someone oustide their household to pay an expense in the prior 12 months. Money for a cell phone bill, for general expenses, and for housing costs - such as rent, mortgage, or utilities - were the most common forms of help that people received.
Additionally, 59% of adults had at least one type of major, unexpected expense in the prior 12 months. The most common unexpected expenses were a major vehicle repair or replacement (30% of adults), followed by a major house or appliance repair and unexpected major medical expenses (22% and 21%, respectively.
Building credit early in life can help you establish a foundation of financial stability. Credit scores can help reflect creditworthiness and may impact credit approval rates and terms. Credit history can also affect job prospects, as some employers check credit history to evaluate an applicant's responsibility and reliability. Our purpose is to work in partnership with individuals and families to use their income wisely, make good financial decisions, repair/establish credit, and provide opportunities to build assets.
Additional Information
In order to apply for the loan, you must complete a 2-hour financial education workshop. The workshops are offered once a month in person. Once you complete the workshop, you’ll need to schedule an appointment to meet with a Financial Coach in order to review application criteria and submit the application to Central Bank.