JACKSONVILLE, Fla.–VyStar Credit Union said it has been awarded a grant of $383,223 grant from Treasury’s Community Development Financial Institutions Fund through its Small Dollar Loan Program (SDL Program).
“In response to the detrimental impacts of payday loans in Florida, with (APRs) soaring up to 300%, VyStar proactively created a solution aimed at curbing the adverse effects of these high-cost loans,” VyStar said in a statement.
The SDL Program Award will fund the launch of VyStar’s innovative Credit-Builder Loan program, specifically designed to provide members with a fair and affordable alternative to high-cost credit options, promoting financial stability and inclusion, VyStar reported.
According to VyStar, the newly launched Credit-Builder Loan is a short-term loan to help members build repayment history and increase their credit score. It was created to help members with limited financial resources meet their immediate financial needs while simultaneously encouraging them to save money, the CU added.
The Credit-Builder Loan also provides access to VyStar’s integrated Financial Fitness platform, which includes financial education resources, free credit counseling and personalized goal setting technology, VyStar added.
“The VyStar Impact Lending Team is excited to have the Credit-Builder Loan in our toolkit,” VyStar SVP-Impact Lending Heather Horovitz said in a statement. “We have members who want to achieve the dream of home ownership come to us looking for ways to consolidate debt or build up their credit score. Our goal is to equip them with the tools necessary for long-term financial health.”
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