Credit Starter Loan Helps Young Adults Chart a Course Toward Financial Success
KeyPoint Credit Union announced it will pledge $10 million in loans and other resources to support young adults with no credit or limited credit to establish credit, build savings, to put them on the right path for a successful financial journey.
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“Our mission is to enable members’ financial well-being through practical solutions and education. We recognize that many young adults do not have opportunities to build credit and savings or to get the financial education that leads to a successful financial journey,” said Doron Noyman, Vice President of Development at KeyPoint.
KeyPoint offers many financial education webinars on a variety of topics. Some of the most frequent questions received at the webinars geared for young adults are “how do I start my credit?” and “I do not have any money to put down for a secure loan; what should I do?” Unfortunately, for young adults building credit on their own is a big challenge. Few financial institutions are willing to take the risk of helping young adults. And if they do offer loans, the interest rate is very high, and in many cases, applicants need a co-signer or must provide money out of pocket for a secured loan.
“At KeyPoint Credit Union, we decided to tackle this issue by helping young adults build their credit and start their savings with the Credit Starter* loan. In most cases, there is no need for a co-signer, the applicant does not need to provide funds out of pocket to secure the loan, and the interest rate on this loan is 0%; yes–you heard correctly,” said Noyman. “Once the member pays off the loan by making timely monthly payments, they start establishing credit and end up with $500 in their savings account.”
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KeyPoint provides various resources to help its members understand how credit works and how to build good credit and maintain it. For example, KeyPoint offers a FICO Score tracking tool within its online banking and mobile app and educational tools like webinars, videos, articles, and self-paced educational modules. “Making a difference in people’s lives is fundamental to our mission at KeyPoint, as is our guiding principle of helping members get on the road to financial success throughout all stages of life. Credit unions are about people helping people, and we exist to promote the financial well-being of our member-owners,” added Brad Canfield, President and CEO of KeyPoint Credit Union.
KeyPoint Credit is working with several non-profit organizations and leaders in the community to help young adults have a great start to their financial journey to success.
Inspired by Silicon Valley innovation and built to serve a diverse membership, KeyPoint is a full-service, not-for-profit credit union dedicated to providing financial solutions to help members achieve their goals in life. KeyPoint helps members make the most of their money—earning more on savings while paying less for credit. And KeyPoint is active in the community providing free financial education programs, as well as fostering financial literacy, sponsoring reading programs and mentoring the next generation of business professionals at local educational institutions.
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