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StretchPay
A credit union salary
advance alternative |
Save
money today, and tomorrow
It can happen to anyone. Unexpected expenses, a new baby, a cutback
in hours, or the layoff of a spouse ... and before you know it,
you're living paycheck to paycheck.
In these
times, with cash flow tight, payday may not arrive soon enough to
cover expenses or pay bills on time.
If you
find yourself with too much month and not enough money, StretchPay
-- the credit union salary advance alternative -- can help. |
Some commercial payday lenders may charge fees equivalent to annual
percentage rates (APRs) as high as 400% or more on their payday
loans.
StretchPay charges a low interest rate of 18%,
plus a small annual fee to enroll in the program. |
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Program details
StretchPay is a loan of $250 or $500 designed to help get you
through your short-term cash needs, and work toward building a
future for you and your family.
How? With StretchPay, you pay less in finance charges, which leaves
more for you to put away fro future financial goals. |
StretchPay
is a real loan that you can use over and over again. Once you pay
off the loan, you can use it again ... with no applications, no
hassle, and no additional fees.
See the
chart below to see how much of a difference a StretchPay loan can
make to your budget. |
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A Smart Solution
Stretch Pay is designed with
you in mind. On a $500 loan for 30 days (28 days for the commercial
payday lender),
you'll save more than $142 with StretchPay. |
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$250 loan |
Interest & Fees |
Loan
Amount |
Annual
Percentage Rate |
Term |
Total
Finance Charges |
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Sample Commercial
Payday Lender |
$15 per
$100 borrowed for each 14-day term |
$250 |
391.07% |
28 days |
$75.00 |
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StretchPay |
18% APR,
plus a $35 per year enrollment fee |
$250 |
18.00% |
30 days |
$3.70 |
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You save
with a $250 StretchPay loan
(not including once-yearly
enrollment fee of $35) |
$71.30 |
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$500 loan |
Interest & Fees |
Loan
Amount |
Annual
Percentage Rate |
Term |
Total
Finance Charges |
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Sample Commercial
Payday Lender |
$15 fee
per $100 borrowed for each 14-day term |
$500 |
391.07% |
28 days |
$150.00 |
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StretchPay |
18% APR,
plus a $70 per-year enrollment fee |
$500 |
18.00% |
30 days |
$7.40 |
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You save
with a $500 StretchPay loan
(not including once-yearly
enrollment fee of $70) |
$142.60 |
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Frequently Asked
Questions
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Q: |
Is it
hard to qualify for StretchPay? |
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A: |
No. You
simply have to:
■ Be a member of a credit union that offers
StretchPay loans for 60 days
■ Be able to show proof of income
■ Have no delinquent accounts at the credit union
■ Not be in the process of filing for bankruptcy |
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Q: |
Do I
have to pay a fee each time I take out a
StretchPay loan? |
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A: |
No. You
pay a fee once per year to be enrolled in the
StretchPay program -- $35 for a $250 loan, and $70
for a $500 loan. After that, you can take out an
additional 30-day loan, repay it, and pay only the
18% APR finance charge.
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Q: |
How long
do I have to repay my StretchPay loan? |
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A: |
30 days
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Q: |
How does
StretchPay help build my credit? |
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A: |
If you
pay on-time, StretchPay can help improve your
credit score by proving that you can handle
credit responsibility. |
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© 2007 the
Ohio Credit Union
League
The trade association for Ohio credit unions.
10 W. Broad St., Columbus, Ohio 43215 • Phone: (800) 486-2917 • Fax: (614)
336-2895
E-mail
us
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