Details :
Members Credit Union began offering credit card consolidation loans since June 2006. The average age of the borrower is 44; lower than the average age of the membership. The credit union will refinance up to $15,000 of credit card debt from other financial institutions and will pay the lenders directly to ensure payment. The average loan is $11,161 with an average monthly payment of $229.
As of December 2007, the credit union was providing the loan at 10.45% APR, which was 400 basis points lower than the regular unsecured loan rate. The credit union restricts the consolidation loan to members with FICO scores of 650 or higher. Only three loans have been written off in first 18 months of the program. The credit union has made more than 756 consolidation loans since the program started for a total of $8.43 million.
As of December 2007, the credit union was providing the loan at 10.45% APR, which was 400 basis points lower than the regular unsecured loan rate. The credit union restricts the consolidation loan to members with FICO scores of 650 or higher. Only three loans have been written off in first 18 months of the program. The credit union has made more than 756 consolidation loans since the program started for a total of $8.43 million.
