Important:

Our organization only serves those who have spent time in a state or federal prison facility.

Fortunately, there are other organizations that are a good fit for you based on what issue is the most important to you right now.

Got medical debt? Check out relief efforts through DollarFor.org!

Check out Dollarfor.org.

Crippling debt or unmanageable debt?

Check out upsolve.org

In need of Extra Cash?

Check out www.steadyapp.com/

New to America & wanting a car, to establish credit, or an education or business loan?

Check out IRC-CEO

More Resources below:

  1. Credit Builder Loans

  2. Building Credit through Rent Payments

  3. No Interest Loans

  4. Credit Unions

  5. Interest-Free Credit Cards

  6. Credit Cards with a Soft Inquiry

Credit Builder Loans

A credit builder loan is designed to help people who have little or no credit history build credit. Credit builder loans do not require good credit for approval. However, they usually require that you have enough income to make your payments. Credit builder loans are available online, and at nearby community banks or credit unions. FinEQUITY’s Credit Builder Loan is simple and safe to use.

Factors to consider in picking the right type of credit builder loan: 

  • Monthly payments that you can comfortably afford.

  • Choose a provider that reports to all three major credit bureaus.

All States

Esusu Savings        esususavings.org/
Kikoff             kikoff.com
Self Lender self.inc

RI, FL, MA, DE, IL, TX, CO, NJ, CT, GA

Capital Good Fund. https://capitalgoodfund.org/en/

 

Building Credit through Rent Payments

What are the pros and cons of reporting rent to the credit bureaus?

All three credit bureaus—Equifax, Experian, and TransUnion—will include rent payment information in credit reports if they receive it. The pros of reporting your rent payments is that it can help you build credit—specifically your VantageScore—especially if you are new to credit. The cons are that there are more efficient ways to build credit, such as getting a secured credit card or a credit builder loan.

How can I report my rent, and which service should I choose?

First, check to see if your property manager already works with a service provider. If not, here are some questions you should ask rent reporting service providers before choosing one: 

  • What would my total costs be for a year of service, including any setup fees or fees for reporting previous rental history? 

  • How do you protect my personal data? 

  • Which of the major credit bureaus do you report to?

  • How soon should I expect the information to appear on my credit report?

  • If I cancel the service, will you remove the past rental payments you have already reported for me?

  • What happens if I have a dispute with my landlord or break the lease? 

Now, on to service providers. Note that your landlord may need to verify your rent payments since some services may not be able to report your payments without your landlord’s verification.

Here are a list of providers:

No Interest Loans

Most financial services charge interest. Interest is the amount of money a lender or financial institution receives for lending out money. No-interest loans are extremely rare. And many scams can advertise no-interest loans. If you see advertising for no-interest, make sure to do more research on the company or nonprofit providing the service.

A no-interest loan means you are only paying back the principal—or in other words, the money you borrowed from the lender without interest. In some cases, no-interest loans have introductory offers and the loan must be paid off in a specified period of time before interest kicks in. Before you apply, make sure to read the fine print, and keep in mind that you may not qualify for 0% interest financing without strong credit. Furthermore, sometimes companies will either temporarily delay interest charges as a way to entice you into selecting their services over competitors, but again, do your research or ask them to explain to you when and how the interest charges kick in. Some organizations and nonprofits offer a no-interest loan, such as finEQUITY and the Hebrew Free Loan Society of New York.

Credit Unions (bank accounts and low-interest loans)

Credit unions are not-for-profit organizations that exist to serve their members. Like banks, credit unions accept deposits, make loans and provide a wide array of other financial services. But as member-owned and cooperative institutions, credit unions provide a safe place to save and borrow at reasonable rates.

You can search for the nearest credit union near you here:

https://www.yourmoneyfurther.com/credit-union-locator

Here are some options of credit unions that offer great rates, low fees, and generous perks:

https://www.lespeoples.org/

https://www.lespeoples.org/

https://www.connexuscu.org/

Credit UnionDescription
Lower East Side People's Federal Credit UnionLES provides members access to affordable loans that can be paid back gradually in the form of affordable monthly payments. If you apply through finEQUITY, we can get your application fee waived.
Alliance Credit UnionAlliance Credit Union offers high-yield checking and savings rates as well as a large ATM network. However, be mindful of their $28 dollar overdraft fee.
Connexus Credit UnionConnexus offers a free, high-yield checking account option with no minimum account balance requirements or monthly fees.
 

 

Interest-free Credit Cards

While interest-free loans are harder to obtain, there are many credit cards that are zero interest. Below, we are going to reference the term “APR rate”. The APR rate is basically how much interest you are charged plus any fees you are charged. So 0% APR rate means that there is no interest being charged and no fees either. Many 0% APR credit cards let you avoid interest on purchases for up to 20 months. Here is a list of examples:

Credit CardIntro APRDescription
Chime Credit Builder Visa Secured Credit Card0% APR/IndefinitelyChime is a financial technology company, not a bank. No credit check to apply, and no hidden fees. Chime is perfect for someone with no or poor credit seeking to build their credit with a credit card. The Chime Credit Builder Visa shares the same purpose as traditional credit cards: It can help you build a credit history and strengthen your credit score.
Bank Americard Credit Card 0% APR only for first 18 Months You won’t get rewards or perks, but it is a decent option for paying down debt or financing a large purchase. However, like most options, the card does not have much to offer after the intro APR offer ends.
Discover it Cash Back0% APR for 14 months This card offers a high rewards rate with a good 0% APR offer. More Pros: Cash Back Match, bonus cash back categories

Bottom Line: There are several options as far as Credit Cards go; much more than listed above. Most credit cards with really good APR rates require that you have a good or excellent credit score. As a beginner with poor or no credit, Chime may be a good option because it has 0% APR designed for you to build credit, with no credit check required. At the end of the day, even if you get a credit card with a high APR rate (for example 18.99-30.99%), the easiest way to avoid paying that interest and accompanied fees is to pay your balance in full by the billing date.

 

Credit Cards with Soft Inquiries

As discussed in our workshop, a hard inquiry is when a lender reviews your credit history in response to your application for credit. Each hard inquiry does temporary damage to your credit score. However, there are soft pull credit cards that let you check for pre-approval and request a credit limit increase without a hard credit inquiry. Here are some examples of credit cards that offer approval without a hard pull:

Credit CardsAnnual FeeDescription
OpenSky Secured Visa Credit Card$35The OpenSky Secured Visa Card allows you to qualify without a bank account or any kind of credit check, which is rare for a secured credit card. With a good payment history, you will get your money back once you close your account and move on to a different credit card. Requires a minimum $200 security deposit. The card is issued by Capital Bank.
AvantCard Credit Card$39AvantCard offers a way to build credit without a security deposit or credit check. The card is issued by WebBank.
Upgrade Card$0Upgrade Card works as a credit card and personal-loan hybrid. It allows you to make purchases which are converted to installment loans at a fixed interest rate. If you carry a balance beyond the due date, you can repay it in equal monthly installments over a set period. The card itself is issued by Sutton Bank. No security deposit or credit check required.