Ohio Payday Loan Alternative: StretchPay

There are two groups of people I feel for regarding the passing of the bill in Ohio that will cap interest rates on payday loans- those who will lose their jobs (and my cousin’s wife is one of them) when the PDL businesses flee the state for unregulated territory and the citizens of the community who are turning to these loans because they are their best chance. Quickly dispersed short term loans are, in theory, a good idea to have available to people that need a little bit of help when an unexpected cost or emergency arises. But there are alternatives to the Payday Loan offices.

StretchPay is a payday loan alternative that is offered at credit unions throughout Ohio (with a location or two also in Indiana, Michigan and DC). You can find a really excellent description of the details of StretchPay here but I’ll go over them below as well.

How does it work?

StretchPay loans are only available in increments of $250 or $500. The APR on these loans is set at 18% (remember, even after the bill in Ohio passes the payday loan rate will still be 28%). You will have 30 days to repay the loan. There is an enrollment fee ($35 for loans of $250, $70 for loans of $500) that you only have to pay once per year.

To compare it to a standard loan from a PDL office:

$250 loan	Interest & Fees	Loan Amount	Annual Percentage Rate	Term	Total Finance Charges
Sample Commercial Payday Lender	$15 per $100 borrowed for each 14-day term	$250	391.07%	28 days	$75.00
StretchPay	18% APR, plus a $35 per year enrollment fee	$250	18.00%	30 days	$3.70
You save with a $250 StretchPay loan (not including once-yearly enrollment fee of $35)					$71.30

$500 loan	Interest & Fees	Loan Amount	Annual Percentage Rate	Term	Total Finance Charges
Sample Commercial Payday Lender	$15 fee per $100 borrowed for each 14-day term	$500	391.07%	28 days	$150.00
StretchPay	18% APR, plus a $70 per-year enrollment fee	$500	18.00%	30 days	$7.40
You save with a $500 StretchPay loan (not including once-yearly enrollment fee of $70)					$142.60

If you do account for the annual fee, you would save $36.30 on the $250 loan and $72.60 on the $500 loan. That’s still a savings, even if you only plan to take out one loan in a year. If you need more than one loan, then that annual fee has already been paid and you’ll get the full savings the next time.

What’s actually better than the savings is that these loans are given out by credit unions. They are financial institutions- not some random office that opened up next to Subway. There are resources available there like financial counseling and advisement that can also help get you back on your feet if the monetary problem is reoccurring.

Who can get a StretchPay loan?

You have to be a member of one of the credit unions that offer the service (see below) for at least 60 days. Qualification for being a member of a credit union can be as loose as living in a certain area or as strict as having to be employed with a certain organization. It varies so check the eligibility info when considering a credit union.

You will also need to be able to show proof of income (pay stubs are usually sufficient).

What credit unions in Ohio offer StretchPay loans?

This is by no means a definitive list. If your local credit union isn’t listed below, call and ask them if they offer StretchPay loans. I tried to divide them by region but since I don’t live in Ohio, there might be some geographical discrepancies here and there. I do list what town(s) each credit union is located in to make it easier. NOTE: Not every credit union is federally accredited. If you have the choice in your area between one that is federally accredited and one that is, choose the former since the latter doesn’t have the insurance policy on the money you deposit there (meaning if the bank folds, you might not see your money again).

Northwest

Midwest Community FCU

Locations: Defiance (2 offices) and Napoleon

Millstream Area CU

Location: Findlay (2 offices)

Bay Area CU

Location: Oregon (the city, not the state)

KEMBA Financial CU

Locations: Bellefontaine, Clintonville, Grove City, Hillard, Westerville (inside St. Ann’s Hospital), Columbus, Sylvania, Westerville

Northeast

Reward One Credit Union

Location: Brook Park

Eaton Family Credit Union

Locations: Euclid, Wickliffe, Willoughby Hills

Kent Credit Union

Locations: Kent, Ravenna, Streetsboro

Central

Midstate Educators Credit Union

Location: Columbus

Western Credit Union

Location: Columbus, Delaware, Plain City

PowerCo. Credit Union

Location: Gahanna

Ohio University Credit Union

Location: Athens

Wright-Patt Credit Union

Locations: Centerville, Dayton, Englewood, Fairborn, Greenhills, Huber Heights, Kettering, Norwood, Springfield, Troy, Wilmington, Wright State University, Wright-Patterson Air Force Base

Communicating Arts Credit Union

Location: Cincinnati

Day Air Credit Union

Location: Kettering, Centerville, Dayton, University of Dayton, VA Medical Center (Dayton)

Southeast

Seven Seventeen Credit Union

Location: Larchmont, Vienna, Cortland, Howland, Hubbard, Austintown, Boardman, Kent, Canton, Youngstown Air Reserve Station (Vienna)

Tags: credit union, House Bill 545, Ohio, payday loan, payday loan alternative, StretchPay