Stretch Pay: An Alternative to Payday Lending
Thursday, December 17, 2009 3:14:36 PM
Towpath Credit Union is pleased to announce that we are now offering Stretch Pay, a special loan program that will help members who need a small-dollar loan to carry them over until their next regularly scheduled pay check.
Stretch Pay is designed to make it easy for members to obtain short term credit with one important difference: a borrower must repay their entire outstanding balance (plus interest) before another advance is permitted. A big advantage to the member is that the fees are much less than a traditional pay-day lender and the loans help build a positive credit history.
Here’s how it works - Loans are limited to $250.00 with a $35.00 annual fee that is paid from the first advance. The loan must be repaid within a 30 day period. At 18.00% APR* interest your 30 day interest would only be $3.70. 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 and no hassles!
- Must be 18 years of age or older
- Primary member on the account
- Must be a Towpath Credit Union member for at least 60 days
- Positive balance on all accounts and no delinquency on any loans with Towpath Credit Union
- Has verifiable income for the last 6 months of $1,000 a month or more
- Not in process of filing bankruptcy
- Has not caused a loss at another StretchPay participating Credit Union
If you are interested in obtaining a Stretch Pay loan, please contact a member services representative at either the Akron or Fairlawn branch. You can download an application here.