Brighton Center

Lending Circles - Credit Building Loan

What is it?

  • Lending Circles is micro-loan program providing participants with a zero-interest loan to help build credit.


How Does It Work?

A group of people form a “Circle” and lend money to one another with all proceeds to be paid out in a specified time.  A Circle must meet these requirements:

  • Have seven to twelve in a group
  • Decide on the amount of the loan
  • Determine what order each person receives his loan
  • Attend an initial orientation where the above decisions are made
  • Participate in Financial Education.  The options are a Two Cents workshop or complete 5 online modules (out of 20)


Who is Eligible?

  • Must be 18 years old
  • There is no minimum income requirement
  • The maximum Income must be at or below 80% of Area Median Income (see chart below)
  • Must have personal e-mail account (not shared)
  • Need a photo ID + SSN or ITIN Government issued.  (Not U.S. citizen is ok or unexpired consular ID is ok)
  • Must have a checking account for auto withdrawals (not savings account)
  • Debt to income must be under 50%

How much will I get?

  • The monthly loan payment can be between $50 to $200 per month (in increments of 50), so the amount of the loan will be dependent on the amount and the number of participants.


How will my credit improve?

  • The loan will be reported to the three major credit bureaus each month instead of the standard once per quarter.


What documents do I need?

  • Proof of income
  • Two full month’s pay stubs
  • Debt to income ratio<50%


How long is the commitment?

  • Each Lending Circles group cycle lasts no longer than one year depending on the number of participants in the circle to have a positive impact on participants’ credit score and to reinforce consistent savings habits.

Why We Do It