For Immediate Release
Contact: Mayra Avila
Phone : (773) 843-8482
May 4, 2023
UNITED CREDIT UNION LAUNCHES SECOND CHANCE LOANS
Payday Loan Alternative Aimed to Empower the Credit-Disadvantaged
CHICAGO – United Credit Union has launched Second Chance Loans, a payday loan alternative that aims to empower credit-challenged members. This program offers an alternative to high-rate payday
loans, which are often used by lower-income households.
With one of the highest rates of unbanked and underbanked households in the United States, United Credit Union seeks to provide access to capital, credit, and financial services to marginalized groups in
the Chicagoland area.
“Our goal is to serve and empower our communities” said United Credit Union CEO Mario Aguirre. “We want our members to feel confident and secure in their finances. The Second Chance Loan addresses
inequities in the financial market by providing a safe and reliable loan option to our members.”
The Second Chance Loan allows members to borrow up to $2,500 at a competitive Annual Percentage Rate (APR) for up to 24 months. Borrowers can use the loan to pay off small-dollar collections, establish
or re-establish credit history, get out of payday lending cycles, and obtain extra cash for emergencies or unexpected expenses.
“We’re here to help, always,” said Aguirre. “We believe that everyone deserves the opportunity to achieve financial stability. By providing access to a lower-rate alternative, we hope to help our members
break the cycle of high-rate payday loans and achieve their financial goals.”
According to a 2019 Federal Reserve Bank of Chicago report, approximately one in five adults in Chicago are underbanked and 7% are unbanked. UCU’s Second Chance Loan is a part of their
commitment to provide members with the tools and resources they need to achieve financial stability.
United Credit Union is a CDFI-certified credit union headquartered in Chicago, IL. It is also designated as a Minority Depository Institution. It was founded in 1930 to serve school teachers during the Great Depression, and now holds a community charter to serve all residents of Cook County, IL. Its mission is to be a financial partner for life by conveniently providing a full range of competitive products and services in an environment of extraordinary service.