Sometimes, best-laid plans go awry and a member needs emergency funds now. Not tomorrow. Not when business hours resume. Now.
When that’s the case, the appeal of payday lenders — which tout convenience and immediate cash availability — can outstrip inflated interest rates and debt cycle dangers.
It is part of the credit union mission to provide low-cost credit to borrowers of modest means, which makes financial cooperatives natural fits to serve current and prospective members who might otherwise turn to payday lenders. However, credit unions must compete on convenience as well as rate if they are to come out ahead in a borrower’s decision-making process.
Digital Federal Credit Union($8.9B, Marlborough, MA) is one credit union that is making it easy to tap into extra cash. In June 2018, the credit union introduced its Quick Loan, a pre-approved short-term personal loan members apply for solely through online or mobile banking. The credit union automatically approves the loan — up to $1,000 — in minutes without a credit check.
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