Credit Starter Loan Helps Young Adults Chart a Course Toward Financial Success
SANTA CLARA, CA (February 8, 2022)— 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. The program will also help them build savings and put them on the right path for a successful financial journey.
"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, a member-owned, not for profit financial institution, offers 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, 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, we 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. Once the member pays off the loan by making timely monthly payments, they have established credit and even have $500 in their savings account," continued Noyman.
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. Brad Canfield, President and CEO of KeyPoint remarked "Making a difference in people's lives is fundamental to our mission at KeyPoint, as is our guiding principle of helping members thrive financially through all stages of life.“
KeyPoint will work with several non-profit organizations and leaders in the community to help young adults have a great start to their financial journey to success.
About KeyPoint Credit Union
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.
Learn more about Next Generation Neighborhood Banking from KeyPoint Credit Union at kpcu.com.
*Rates as of 2/7/2022. All loans subject to approval. Rates, terms and loan product availability subject to change without notice. Payment example: Pay $20.84 per month for $500 borrowed at 0% APR for 24 months. KeyPoint reports Credit Starter loan payments to consumer reporting agencies but cannot guarantee the effect of Credit Starter loan payments on consumer FICO scores, which are set and adjusted by consumer reporting agencies