Family First Federal Credit Union Helps Members with Short Term Cash Solution

Business Wire, May 18, 2009

New Credit Rebuilder Loan is Ideal for Members Who Have Fallen on Tough Times, Need Extra Cash or Need to Rebuild Their Credit

OREM, Utah -- Family First Federal Credit Union today launched the Credit Rebuilder Loan, designed to assist members who need cash, have poor credit, or no credit. The Credit Rebuilder Loan has lower fees and interest rates than other commonly used methods such as PayDay Loans, and is intended to help members rebuild their credit.

The Credit Rebuilder Loan includes:

• No denial based on the member's credit report and/or credit score
• Minimum of three months on the job (must not be seasonal)
• Must have direct deposit and be a member of the credit union for at least three months
• Loan amount up to $1000 at 18 percent interest up to 12 months
• Once the loan is paid off, the member can qualify for an additional $500 totaling $1500 on all new loan requests

“We understand that many members have fallen on hard times due to unforeseen circumstances,” said Ben Wiseman, assistant vice president of consumer loans. “In talking to many of our members, we felt it was critical to offer a less expensive solution than PayDay loans, and in doing so, assist our members in rebuilding their credit.”

To help members rebuild their credit, Family First Federal Credit Union will pull a credit report and coach the member on what makes up the score and how to improve it. This will provide the credit union an opportunity to educate the member and better assist them in rebuilding their financial position. As the member successfully pays back the loan, they can increase the loan amount and continue to work at building a good credit history.

Members will pay only 18 percent APR, which is considerably less than the annual rate of 400 percent that borrowers have been accustomed to paying on various payday loans. According to a study conducted by the Center for Responsible Lending, borrowers pay $4.2 billion every year in excessive payday lending fees. Based on lending calculators, members under the Credit Rebuilder Loan would pay $92 a month for 12 months on a loan up to $1000. Plus, the credit union offers debt protection options for only a few dollars a month.

The loan application is simple and takes little time to process. It can be started over the phone with a loan officer at 801-225-6080 or by stopping into one of the credit union’s seven branch locations.

ABOUT FAMILY FIRST FEDERAL CREDIT UNION

Family First Federal Credit Union has been providing excellent financial services since 1947. Branches are located in American Fork, Pleasant Grove, Orem, Springville, Payson, Lindon, with a Home and Business Loan Center in Orem, and offers online services at www.familyfirstcu.com. The credit union provides various mortgage services including construction loans, mortgage refinance and home equity options. Anyone who lives, works, or attends school in Utah County, or has a family member who does, is eligible for membership. As your primary financial institution, Family First Federal Credit Union is dedicated to providing its members with high quality service, friendly staff, and convenient account access to better meet their needs.

Jennifer Stoddard, Associate Vice President of Member Services, answers questions about finances and budgeting on the Family First Web site in a section called “Ask Jenn.” The “Ask Jenn” feature can be found on Family First’s Web site at https://www.family1stcu.com/askJen.php.