The credit union advantage

When it comes to how you save and manage your money, you want your finances to be in the right hands. Across the country, people who bank with Everence^® Federal Credit Union have experienced countless positive changes in their financial journeys.

Kevin Gil, Financial Wellness Manager at Everence Federal Credit Union in Philadelphia, and Marla Brenneman, Branch Manager for Everence Federal Credit Union in Goshen, Indiana, recently shared some of their client’s success stories.

NAVIGATING A NEW FINANCIAL JOURNEY

In North Philadelphia, the credit union branch shares a building with Esperanza Health Center, a faithbased community health organization providing holistic care without regard for economic or social status in Kensington, a low- and moderate- income neighborhood.

The two organizations are partnering to address the needs of the predominantly Latino/a and Black – and historically underbanked and underserved – community.

Kevin recalls the story of a young couple in their 20s and locals to the area, Anna and Mark*, who came to Everence looking for help to create a budget. 

“They were definitely go-getters,” said Kevin about the couple. “They were planning to get married and buy a home, ready to take on the next stage of their lives.”

Within a year after meeting with Kevin, Anna and Mark were able to pay off their student loans. They soon opened savings and checking accounts, and a credit card with Everence Federal Credit Union – which has helped establish their credit and grown their savings significantly. And with their can-do spirit and help from Everence, Anna and Mark have since fulfilled their dream of purchasing a house and getting married.

Michael* also turned to Everence Federal Credit Union to start his new financial life. Michael immigrated to Philadelphia from the African continent with no credit score and, admittedly, little knowledge about finances – but was eager to learn.

That’s when Kevin and others at the credit union introduced him to credit building budgeting, which has helped Michael establish his credit score in the 800s. He’s since opened checking and savings accounts and a MyNeighbor credit card account with the credit union. And, after meeting with an Everence financial consultant, Michael now is interested in other financial possibilities, including investing.

Anna, Mark, and Michael aren’t the only ones setting a new financial course in Philadelphia. Isabella* had been turned down for loan by other banking institutions, due to a gap in her work history caused by COVID-19. She turned to Kevin, who helped Isabella apply for and receive a mortgage loan through Everence Federal Credit Union.

Isabella’s mortgage loan – and the trusted relationship she built with Kevin – were so helpful, that she referred her mother to Everence for a home equity loan.

IMPACT LENDING TO SUPPORT CREDIT BUILDING

Through the impact loans, Everence is investing in communities like the Kensington neighborhood to help people build their credit scores, avoid payday lenders and maintain their homes.

“Our impact loans are designed to serve individuals typically left out of the formal financial system,” explained Leonard Dow, Everence Vice President of Church and Community Development. “Right now, we’re piloting this initiative in Philadelphia, but hope to eventually expand it into other areas.”

The suite of impact lending products includes credit builder loans to help borrowers establish new credit or build existing credit history; opportunity micro loans to support individuals in building their credit while paying off small loans; and home improvement loans to help homeowners prevent small repair issues from turning into major problems.

Borrowers are not required to have a minimum credit score to qualify, and Everence Federal Credit Union offers certified financial coaching alongside each approved loan.

AVOIDING PREDATORY PAYDAY LENDERS

Relatively small, unexpected expenses can be an annoyance for just about anyone. But according to the U.S. Federal Reserve’s Report on the Economic Well-Being of U.S. Households in 2021, 32% of American adults would have difficulty covering such unexpected expenses and 11% would be unable to pay for unanticipated expenses at all.

“For these individuals and families, an unforeseen car repair, appliance replacement or medical diagnosis could severely hinder their ability to keep up with routine expenses,” said Marla. “And many end up turning to payday lenders or other high-risk credit options, which can then snowball into even deeper debt.”

In 2018, leaders at Oaklawn Psychiatric Center in Goshen, Indiana, reached out to Everence to discuss ways they might help their employees facing similar situations. The result: a new employer-sponsored loan program, administered by Everence Federal Credit Union, to provide workers with access to affordable, low-risk credit opportunities to help lessen personal financial stresses.

Marla explained that through the program, Oaklawn employees can receive a loan of up to $1,000 each year to cover short-term expenses. Loans are repaid through the employees’ payroll deductions – and once paid off, the payroll deductions can continue as direct deposits into their Everence savings account to serve as an emergency fund for the future.

Oaklawn staff were quick to recognize the benefits of the new program. Jessica* received her employer-sponsored loan in 2018 and grew her credit score from 653 to 759 within a year. Now she has a checking account, a line of credit and a good relationship with Everence Federal Credit Union.

Jessica’s colleague, Ed*, was already familiar with and interested in the Everence mission of helping people integrate their faith and values with their financial decisions. He was approved for his first employer-sponsored loan in 2018, and a second in 2019.

Working with Everence to improve his credit score also led to meaningful connections. When Ed mentioned concerns about his wife’s health, Marla comforted and prayed with him. Today, his wife is doing better, and Ed continues to cultivate a great relationship with Everence.

“Some employees need just one loan, but others end up applying for two or more,” said Marla. “Anyone who wants to apply for a second employer-sponsored loan is required to complete at least one of the six free credit counseling sessions through our partners at LSS Financial Counseling, as another way to help with their financial wellness.”

The Everence-administered employer-sponsored loan program that began at Oaklawn is now offered by 12 other employers across the country, including Greencroft Communities, based in Goshen, and Sunshine Communities in Maumee, Ohio. Collectively, nearly 860 employees have taken advantage of this unique service so far.

“It’s so heartwarming to help our members and neighbors reach their financial goals,” reflected Marla. “Financial stewardship isn’t a journey designed for anyone to take alone. We’re all part of this life together, supporting and helping one another as a community of faith.”

*Names of clients have been changed to respect confidentiality