New Loan Alternative for Great Falls' Working Families

Today, Great Falls Teachers Credit Union in collaboration with RDI (Rural Dynamics, Inc.) is launching a new credit line for working families.  The SAFE credit line (Securing Access with Financial Education) is a $500 line of credit that is accessible regardless of credit history.

“This is an exciting step for our community based Credit Union.”  Said Deb Evans, President of Great Falls Teachers Federal Credit Union.  “It is our goal to help families overcome temporary financial hardships and move them towards economic stability.” 

The credit line has minimal requirements and is meant to help fill the gap that was created by the passage of I-164.  Consumers must be a member of the credit union for one month, be employed, and complete an individual financial analysis with a certified RDI advisor, at no charge to the consumer. 

“We are proud of this partnership.  Our agency worked to help cap the interest rates on short term loans and will continue to fight for consumer protection and access to responsible financial products,”  said Tom Jacobson, CEO of RDI.  “It is our hope that consumers will set up these accounts in advance of their emergency so that when they are in financial crisis they have the resources to overcome without accessing options that trap them in cycles of debt.”

In November, Montana voters overwhelmingly supported an initiative to cap short term loan interest rates at 36%.  Many of these ‘payday’ lenders have or plan to stop offering short term loans to consumers.  While many consumers are finding other mechanisms to satisfy their short term cash flow or liquidity needs, the systemic issue remains; consumers living pay check to pay check lack short term credit options to thrive economically. 

In order to build credit and improve credit scores, consumers must not only pay back their loans on time, but that payment history must be reported to the credit bureaus. The SAFE line of credit through Great Falls Teachers FCU will be reported to credit bureaus.  Consumers who took out numerous short term loans and paid them back on time through payday lenders, did not receive the benefit of credit reporting. 

“This is an excellent way for consumers that may have poor credit and not qualify for traditional lines of credit to access credit and build their credit score,” Jacobson said.

The majority of these consumers are middle class individuals and families living pay check to check.  Through a systemic approach which incorporates a variety of community partners providing individual budgeting, financial education, and financial services the SAFE line of credit’s purpose is to strengthen this middle class population moving them from a precarious financial position to economic security.

The SAFE line of credit offered by Great Falls Teachers FCU is at an 18% interest rate and requires monthly payments of $50.  Consumers work closely with financial mentors (the credit counselor and loan officer) to build their credit score and access additional resources over time. 

For more information about the SAFE Loan, consumers should contact Gayle Jacoby, Financial Services Officer, at Great Falls Teachers Federal Credit Union 791.2883.