How do Lending Circles work?

Each month, a group of participants make the same monthly payment ranging from $50 to $200, and these payments are reported to all three credit bureaus. This pool of money, or the loan, rotates to a different participant each month.

Let’s take a look at an example Lending Circle with 10 participants contributing $100 each month. In the first month, one participant receives the $1000 and each month after that a different participant will receive the loan, until everyone in the Lending Circle has gotten a chance to receive the money.

After completing the program, many participants establish credit scores for the first time or improve damaged ones.