Capital Good Fund Loans: 2024 Review

Capital Good Fund is an online, nonprofit lender that makes installment loans to borrowers with low incomes and no credit history or bad credit. Common uses of Capital Good Fund loans include car repairs, security deposits, refinancing high-interest debt, home weatherization and catching up on rent or utility bills.

With rates capped at 15.99%, Capital Good Fund personal loans are cheaper than payday and other high-interest loans.

Capital Good Fund lends to consumers in 11 states: Colorado, Connecticut, Delaware, Florida, Georgia, Illinois, Massachusetts, New Jersey, Pennsylvania, Rhode Island and Texas.

The company says it can offer low rates to consumers because it partly operates on grants and donations.

Capital Good Fund loan types

Capital Good Fund offers several loan types, depending on what you need the funds for. Rates, terms and availability vary by state.

Impact loans

Impact loans can be used for meeting basic needs like paying rent or covering surprise expenses, such as medical bills or car repairs.

In addition to smaller Impact loans, the lender offers an Impact PLUS loan in Florida. Loans are from $1,501 to $3,500 with a 18% APR and are repaid over 30 months.

» MORE: Compare emergency loans

Immigration loans

These loans can pay for immigration-related expenses, such as obtaining citizenship and securing or renewing a green card. The lender says it has staffers who are fluent in English and Spanish.

Special requirements: Borrowers need a referral from a community agency or immigration attorney proving they’re eligible for immigration to get this loan. If the loan is used to pay for a detention bond, Capital Good Fund requires a copy of the judge’s immigration order.

Weatherization loans

The lender offers weatherization loans to help homeowners make their houses more energy-efficient. Massachusetts residents may be eligible for Weatherization Plus loans, which are up to $50,000 but still have a 0% APR.

Special requirements: Borrowers need a state-issued HEAT Loan Authorization Form in order to apply for the loan with Capital Good Fund.

How to qualify for a Capital Good Fund loan

To qualify for a Capital Good Fund loan, you usually need a bank account or prepaid debit card with two or more months of statements, and income that can be verified with pay stubs or deposits into a bank account. You also must live in one of the states where Capital Good Fund operates.

Those qualifications are in addition to any special requirements for the type of loan you’re getting.

Banking history and a borrower’s ability to repay the loan are the most important factors considered for approval, the lender says. The company looks at the average daily balance in your bank account and whether you’ve had any overdrafts. This information shows not only if a borrower has enough income to repay the loan, but whether they keep enough money in their account every month to do so.

You don’t need a credit score or credit history to get a loan, but any credit you have will be considered.

Other capital good fund programs

Capital Good Fund offers a credit-builder program, in which you pay $5 per month for 12 months and the lender reports those payments to all three credit bureaus as a 0% APR loan. It also offers a financial coaching program in seven states at $15 per month for 12 months.

» MORE: Get your free credit score through NerdWallet

Capital Good Fund loan example

Here’s what you can expect to pay for one of its loans:

• Impact loan: A $1,000 loan with a 12% APR repaid over 15 months would have monthly payments of $72 and would cost $82 in total interest and fees.

• Immigration loan: A $5,000 loan at 15.99% APR repaid over 36 months would cost $176 per month and carry $1,327 in total interest and fees.

» MORE: Use a personal loan calculator

How Capital Good Fund compares

Capital Good Fund has lower rates and smaller borrowing amounts than other payday loan alternatives, though lenders like Oportun and OppLoans are more widely available.

Oportun: Offers personal loans up to $10,000 with APRs up to about 36%. Oportun allows borrowers to choose their payment date or add a co-borrower.

OppLoans: Offers installment loans up to $4,000 with triple-digit APRs. OppLoans may let you change your payment date.

Capital Good Fund isn't a good idea if:

• You need to consolidate debt: Capital Good Fund’s personal loan can’t be used for debt consolidation, but may be used to pay off higher-interest loans such as auto title or payday loans.

• You have cheaper options: If you can’t pay your bills, ask for extra time from your creditors, get local assistance or find cash elsewhere.

Here are some alternatives that may be cheaper than borrowing.

For help meeting basic needs: Find a local financial assistance program that can help you get food, clothing and access to transportation for job interviews.

For help with rent or utilities: Contact your utility company, landlord or mortgage issuer for help deferring a payment. If you need long-term help, consider seeking other housing, or contact a housing counselor.

To pay medical bills: Learn about ways to cover medical costs, including payment plans.

To cover other one-time emergency expenses:

• Ask a friend or family member for a loan, or form a lending circle to borrow from those you trust without accruing interest.

• Ask your employer for a paycheck advance, or use a loan app to borrow against your next paycheck.

• Get a payday alternative loan or a small personal loan from a credit union. You have to be a member to use this option, but it’s one of the most affordable ways to pay for an emergency.

• Try other ways to make money. You need some extra time to make this option work.

» MORE: Explore alternatives to payday loans

If you take a Capital Good Fund loan