Credit Union FAQ
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What does a typical short-term loan member look like?
Nearly 30 million U.S. households are either unbanked or rely on alternative financial services – including many of your own credit union members and employees. All of them need a better alternative.
The demographics of short-term loan members remain broad and varied. In general, the short-term loan member is a responsible, hard working, middle-class American. A snapshot of the typical short-term loan member base reveals the following demographics:
- Adults aged 25 – 49.
- The majority are women.
- Annual income between $20,000 and $60,000.
- 82% have a high school diploma or better, with 52% having some college or a college degree.
- Nearly half own their own home.
- Represent the working American middle-class.
- They research and consider their alternatives only to decide that short-term loans are often a less costly, more desirable option for short-term unsecured credit.
How does a member apply for a CUALS XtraCash loan?
The member can apply for an XtraCash loan conveniently online.
How much can a member borrow?
The loans typically range from $100 to $500 in increments of $25, depending on state laws.
How much does a CUALS XtraCash loan cost?
State and federal laws regulate the fees charged for short-term loans. XtraCash offers competitive fees in compliance with applicable state and federal laws. See Fee Charts
Who/What determines the loan amount?
Based on the established criteria, our automated underwriting system considers all of the variables and determines loan approval amounts and loan denials.
What deliverables does CUALS provide to credit unions using these services?
- Use of CUALS short-term, web-based lending services.
- CUALS provides System, Underwriting, Collections, Servicing, licensing (if applicable), and incurs all loan losses.
- CUALS provides training on the Xtracash loan origination process and web-based system.
- CUALS pays your credit union quarterly based on loan volume.
- CUALS provides a complete Xtracash marketing package at no charge.
What are the steps for implementation?
- Credit union and CUALS sign Service Agreement.
- CUALS sets up system and acquires necessary licensing if applicable.
- CUALS provides training for credit union staff on the Xtracash loan origination process and web-based system.
- CUALS Xtracash goes “live” and is offered to your credit union members
*Credit union has option of investing in CUSO as an owner. Owners would share in future potential profits.
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What are the requirements for a CUALS XtraCash loan?*
- Must be at least 18 years old with a validated source of regular income.
- Must have an open and active checking and/or savings account.
- Must have a home phone or cell phone.
*Requirements vary by state, however these are the most common
Why do people choose short-term loans?
While many people do a good job of managing household budgets, there are times we need occasional help. An increasing number of consumers choose a short-term loan to cover unexpected expenses or to bridge a short-term cash crunch between paydays, without incurring revolving debt. It is a short-term financial management tool that provides a sensible alternative to costly bounced checks, late payment charges, and tarnished credit ratings.
How often can members use this service?
Since a payday loan is a short-term solution to an immediate need, it is not intended for repeated use in carrying an individual from payday to payday. When an immediate need arises, we’re here to help. Members may use this service anytime you need us, but a CUALS XtraCash loan is not a long-term solution for ongoing budget management.
How do members apply for a loan?
The member can apply for a loan conveniently online.
What happens if the member changes their mind after taking out a loan?
The member may undo the transaction at no cost, before the end of the following business day, by returning the full principal amount of the loan to us.
Is the transaction confidential?
We disclose our privacy policies and practices to members, and protect the confidentiality of members’ personal information.
How much can the member borrow?
Depending upon income level, other established underwriting criteria, and state or federal laws, loan amounts typically range from $100 to $500 — available in $25 increments.
How are fees established?
CUALS XtraCash fees are competitive and in compliance with applicable state and/or federal laws. View Fee Charts
Is the member’s credit rating checked before they receive a CUALS XtraCash loan?
We do not obtain a credit report from any of the three major credit bureaus. People who have had past credit problems may receive loans from us. We do, however, subscribe and report to MicroBilt, a risk assessment service that reports members lending history from other businesses like ours. We also report to Veritec, a database that runs every consumer transaction, and is required in certain states.
How does the member receive the funds?
The funds will be deposited into the member’s credit union account.
How does the member pay back their CUALS XtraCash loan?
We can arrange for an ACH electronic transfer from the members account to occur on the loan due date. Depending on state laws, other payment options may be available. Contact us directly for additional information.
May a member have more than one loan at a time with you?
No. The member may only have one loan outstanding with us at one time.
After the member pays off their loan, may they get another loan?
Yes! The member can get another loan at any time as long as they have paid their last short-term loan in full, and it is allowed under state law. Some states do have a “cooling off” period before the member can receive a new loan.
If getting a CUALS XtraCash loan is such a simple and easy process, why is there so much information in the Consumer Loan Agreement?
The Agreement the member reads and electronically signs prior to receiving an CUALS XtraCash loan is a contract between the member and us. Our contract complies with all applicable state and/or federal disclosure requirements. It fully outlines the terms of the transaction, including the cost of the service fee both as a dollar amount and as an annual percentage rate (APR). Although most members do not consider APR information helpful when evaluating the cost of an XtraCash loan, in the interest of full disclosure, we want the member to have all the information they need to make an informed financial decision. It may also contain an arbitration agreement and an ACH (Automated Clearing House) authorization.
What happens if the member doesn’t possess necessary funds to repay the loan on the due date?
We are committed to collecting past due accounts in a professional, fair, and lawful manner. However, if the members ACH electronic transfer is returned by their credit union or bank, they may receive a “returned item fee” charge where allowed by law.
Important Disclosures: Payday advances should be used for short-term financial needs only, not as a long-term financial solution. Members with credit difficulties should seek credit counseling.