EAST HARTFORD, Conn. — American Eagle Financial Credit Union has launched a short-term loan product that uses members’ transaction histories and existing relationships with the credit union as part of the underwriting process, providing another borrowing option for members who may not qualify through traditional lending channels.
The credit union has partnered with CashPlease on the offering, which it said is intended to help eligible members cover unexpected expenses, including emergency car repairs, broken household appliances and other unplanned costs, according to American Eagle.
Rather than relying solely on traditional lending criteria, CashPlease considers factors that include a member’s deposit transaction history and length of relationship with the credit union. Eligible members are offered a predetermined loan amount based on those and other factors, American Eagle said.
The loans have a fixed six-month term and can be repaid early without a prepayment penalty. American Eagle said it does not charge application or origination fees for the loans.
‘Can be Challenging’
“Unexpected expenses can happen to anyone. For some of our members, accessing the money they need in those moments can be challenging,” Ashley Rollins, vice president of lending administration, said in a statement.
Rollins said the product allows the credit union to take into account the relationship a member has established with American Eagle.
“Our goal is to provide responsible, accessible options that help members navigate financial setbacks and continue moving forward on their financial journey,” Rollins added in a statement. “Not every member’s path looks the same, and this gives us another way to support their individual needs while advancing their long-term financial well-being.”
What Was Sought During Evaluation
American Eagle said it selected CashPlease after evaluating available short-term lending products, with flexibility around fees among the considerations. The credit union said eliminating an application fee was intended to make the product more accessible to members who may already be dealing with an immediate financial need.
The credit union characterized CashPlease as an additional pathway to credit for eligible borrowers whose financial circumstances may make it difficult to qualify through conventional underwriting.
