Better Choice Loan

The Payday Lending Alternative

Payday loans are designed to create a debt trap. The typical payday loan requires full repayment within two weeks which makes it nearly impossible for cash-strapped borrowers to repay their loan and pay their other expenses. The structure of the payday loan product ensures that borrowers will need to take out another payday loan. Payday loans interest rates can exceed 500% so the average payday borrower pays $800 to borrow $325.

The Better Choice Program, provided by the Erie Federal Credit Union, offers a payday lending alternative by providing a loan with a maximum repayment term of 90 days and 10% of the loan is placed in an interest bearing savings account in the borrower’s name. Loan payments can be made weekly, bi-weekly or monthly and there are no late fees. To apply for an Erie FCU Better Choice Loan, visit any one of our convenient office locations.

*APR = Annual Percentage Rate. Better Choice Loan interest rate is 18% APR. Minimum loan amount: $200.00, Maximum: $500.00. Better Choice Loan requires a 10% deposit of the loan amount to a Regular Share Savings Account and an application fee of $15.00. Payment Example for maximum loan amount: 90 days (3 Months) at 18% APR with no insurance for $565.00 produces a monthly payment of $194.00. Membership eligibility required. Minimum three (3) months membership required to apply for a Better Choice loan.