Saturday, February 22, 2014

Twin Accounts Can Build Savings and a Credit Record

Building a good credit record can be a problem.  On one hand, consumers are encouraged to build credit--but by definition, this means getting into debt. Isn't it supposed to be good to save money?  For people who would like to establish credit, while building their savings, LISC (Local Initiatives Support Corporation) has created a financial product called Twin Accounts. 

LISC gives the client a $300 12-month loan, but the money isn't given to the client right away.  It is held in an account, and the client makes monthly payments with interest.  When the loan period is over, the client gets not only the money, but a 1 to 1 match from LISC.  When the client makes payments (on time), it is reported to the major credit agencies so that the client gets a good credit record AND the loan amount and matching payment to create a personal nest egg. 

What do you have to do to be qualified for this?  You need to live in an area in Illinois, Michigan, Minnesota, Ohio or Texas where LISC operates.  You also must have little or no active lines of credit, enough income to repay the loan and interest, and work with a LISC-supported financial counselor.  If this sounds like you, contact your local LISC office and see if you qualify.

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