Lending circles empower people to improve their credit
4.30.2018
—
LISC StoriesEconomic Development
More than a dozen people have saved money and built their credit thanks to a LISC-supported partnership between Santa Maria Community Services and Mission Asset Fund.
The lending circle program is a successful extension of Santa Maria’s financial literacy education programs. Each person in a lending circle agrees to chip in a set amount each month for a set time; one person each month gets the pooled cash.
Since launching the program in 2017, Santa Maria’s lending circles have allowed people to work together to bulk up their savings, eliminate debt and buy a car. The nonprofit is gathering people for its third lending circle.
In the two completed lending circles, participants agreed to save $100 a month over seven months and collected $700. They also saved about $1400 in interest and fees associated with traditional loans.
Mission Asset Fund, based in San Francisco, tracks the zero-interest loans for credit bureaus. In addition to achieving their short-term financial goals, Santa Maria’s lending circles participants also have seen their credit scores rise.
Related Stories
4.30.2018
-
LISC StoriesFinancial Stability
Lending circles offer credit, cash to Greater Cincinnati residents
