ASIA’s Lending Circle Program is created as a solution to help the underbanked and unbanked. According to the Federal Deposit Insurance Corporation (FDIC), 106 million people, or 28% of the U.S. population, are either underbanked or unbanked. Without a bank account or credit history, working poor families are locked out of the low-cost credit market. Lending Circle program aims to provide this group of people access to the American financial system. It is a credit building program that works by having a group of individuals pitch into a pool of money that each participant can borrow from, and each financial transaction made is reported to the major credit bureaus. Not only does the program help people build credit, it also saves them money. When they increased their credit through this program, they can lower interest rate on any outstanding debts. The participants can refinance their debt to save money, and this program has proven results. Studies shown a similar Lending Circle program reported an average of $1,000 debt reduction since joining a Lending Circle!
For more information contact Asian Services In Action at Lendingcircles@asiaohio.org