CREDIT REPAIR - BUILDING THE FUTURE "Save, Borrow, and Repair Your Credit"

This program, Save, Borrow, and Repair Your Credit (SBRYC), is designed to help you budget, save and rebuild your credit history. We all know that when money is more difficult to access, it is more difficult to spend.  Understanding this, the SBRYC is a "restricted" account; you will only be able to make authorized withdrawals AFTER you have discussed making them with a Metro Community Development counselor. 

To participate in this program you must complete the following:

Phase 1: Budget and Save
  1. Complete an application package with MCD
  2. ELGA Credit Union will open a restricted savings account
  3. You will need to complete a Savings Goal Plan, and a Spending Plan with MCD
  4. You will be required to complete MCD SmartMONEY Workshop series
  5. Develop a budget with regular savings included in your spending plan!

EVEN THOUGH THE MONEY IS YOURS, THE RESTRICTED STATUS WILL PREVENT YOU FROM MAKING WITHDRAWALS UNTIL YOU HAVE DISCUSSED THE WITHDRAWAL WITH YOUR METRO COUNSELOR OR AN ELGA REPRESENTATIVE.

Phase 2 - Borrow & Rebuild
  1. When you reach $350 in savings, apply talk to Kathy Beard at ELGA.  They will arrange a "secured" loan that can be deposited into your savings account.  YOU WILL HAVE TO SIGN LOAN DOCUMENTS with ELGA FOR THIS TO HAPPEN.  This will bring your savings to $600. 
  2. You will continue to deposit into the savings, your ordinary budgeted monthly amount. You will plan on having an automatic payment OUT OF YOUR SAVINGS ACCOUNT to pay the monthly installment on this loan.
  3. Your loan can't be late, as it is automatically re-paid!
  4. This newly created loan will be reported to the credit reporting agency as a LOAN, and will demonstrate a good, "on-time" payment history.
  5. This will create and raise your commercial credit score.
Phase 3 - Building Financial Health with a checking account, credit card, etc.

After 6 months of continued savings, the household may add other financial services.  This will provide an opportunity for households locked out of traditional banking services due to negative banking history - 'bounced checks", etc. -  to regain important financial services.