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Payday Loan Alternatives at Community Banks

March 18, 2013
Personal Finance
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For whatever reason, sometimes you just need extra cash. You might need help to pay bills, or to fund a personal expense. Community banks have a solution for your monetary needs. Through payday loan alternatives, credit-building loans or other short-term loan options, they provide a variety of services to reduce your financial problems. These loans not only get you the funds you need, but they also serve the important purpose of improving your credit. If you have little to no credit, or bad credit, these loans will help you get back on track. Check out one of these short-term loan options at a community bank near you for a quick cash alternative.

Unsecured ‘First Step’ Loan Program – Webster 5 (Webster, MA)

Webster 5 offers the Unsecured “First Step” Loan Program for consumers with limited credit, and those who need money for personal expenses. You can borrow between $300 and $1,000. The loan has a fixed rate and fixed term, and has expanded underwriting considerations, including buying furniture and car repairs. You get the funds you need, plus the loan helps you improve or build your credit. Webster 5 has branches in Webster, Dudley, Oxford, Auburn, Worcester and Shrewsbury, Massachusetts.

Ready Cash – ABC Bank (Chicago, IL)

As part of their Bank @ Work service, ABC Bank offers the Ready Cash unsecured line of credit as a payday loan alternative. You get specific, low fixed rates for two tiers of loans, from $300 to $1,000, and from $1,000 to $10,000. As you pay off the loan the funds become available for use again, without needing to apply for a new loan. ABC Bank has branches in Chicago and Bensenville, Illinois.

CreditPlus – BankPlus (Belzoni, MS)

CreditPlus at BankPlus is a short-term loan designed as a payday loan alternative that helps you develop strong savings habits and break out of the debt cycle. You’ll get low interest rates, and a maximum loan amount of $1,000 with a credit score of 550 or higher ($500 for credit scores below 550). You must complete a three-hour financial literacy seminar conducted by BankPlus prior to taking out the loan. Half of the total loan amount will be deposited into your checking account, and the other half will go into your savings and will be put on hold until the loan is paid off. BankPlus has over 60 offices in 33 Mississippi communities.

PAL Loan – Central Bank (Lexington, KY)

The Program of Assisted Lending (or PAL) Loan at Central Bank is a fixed-rate loan for lower-income families or individuals to use for any purpose. You get a special interest rate and loan amounts between $500 and $3,500. Central Bank has branches in Berea, Georgetown, Lexington, Louisville, Nicholasville, Crestview Hills, Fort Mitchell, Florence, Richmond and Winchester, Kentucky.

One Pac Pal Loan – One PacificCoast Bank (Oakland, CA)

One PacificCoast Bank’s One Pac Pal Loan is an emergency loan that employers in Washington, California and Oregon can offer to their employees. It’s an affordable alternative to payday loans, and helps you improve your credit and start saving for the future. Loan amounts are between $500 and $1,000, depending on your monthly income. One PacificCoast Bank has branches in Oakland and Sacramento, California, Portland in Oregon, and Ilwaco and Seattle, Washington.

Small Dollar Loan – Lake Forest Bank & Trust Company (Lake Forest, IL)

The Small Dollar Loan at Lake Forest Bank & Trust Company is a fixed-rate loan available with quick approval decisions. Loan amounts are between $250 and $1,000. Lake Forest Bank & Trust Company has branches in Lake Forest, Lake Bluff, Highland Park, Highwood and North Chicago, Illinois.

Freedom Fast Loans – Liberty Bank (New Orleans, LA)

Liberty Bank offers two Freedom Fast Loans, for when you need money fast. Freedom Advance is for smaller, unexpected expenses, with loan amounts between $500 and $2,500. Freedom Express is for larger, planned expenses, like home repairs or tuition, with loan amounts as high as $10,000. Liberty Bank has branches in Louisiana, Kansas, Mississippi, Missouri, Illinois and Michigan.

The Affordable Smart Dollar Loan Program – BankFive (Fall River, MA)

BankFive chose to continue the FDIC’s Smart Dollar Loan pilot program after it ended. The Affordable Smart Dollar Loan Program helps you improve your credit and your savings. You get a low, fixed interest rate, no prepayment penalties, and terms up to 36 months. BankFive has 13 branches in Massachusetts and Rhode Island.

Credit Builder Loan Program – The Equitable Bank (Wauwatosa, WI)

The Equitable Bank’s Credit Builder Loan Program is a short-term loan for people with no credit or people who have had credit problems in the past. The bank will report your good payment history to the credit bureau, which will help you move towards positive credit. Loan amounts are available from $500, and the bank will help you figure out how much you can pay each month. You’ll earn interest, because the loan amount is put into a CD account in your name, and you’ll learn valuable savings habits. The Equitable Bank has branches in Whitefish Bay, West Allis, Wauwatosa, Greenfield, Hales Corners, Cedarburg, Waterford and Delafield, Wisconsin.

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