Lending Circles by MAF - 0% loans that help build credit or pay bills.
Lending Circles from Mission Asset Fund (MAF) formalize a long-standing community practice of lending money. It works by friends pooling money and taking turns receiving the pot into a safe, documented, 0% interest loan that helps people build or repair credit while accessing a small amount of cash. Learn more about Lending Circles loans below, including how to apply.
For many needhelppayingbills.com readers, Lending Circles solve two problems at once. It will help people address short-term cash needs and the lack of a strong credit file that makes daily life more expensive. MAF’s model is fee-free and interest-free, so it is more affordable. Payment activity is reported to Equifax, Experian, and TransUnion, which is why past participants have seen meaningful credit gains on average.
How the MAF Lending Circles program works in practice
After you apply for a loan and complete brief online financial education (which helps people address long term needs), MAF helps place you in a circle. Everyone agrees to the same monthly contribution and a rotation order. Each month, one member receives the money that has been raised from the pooled loan. The process continues though in a “circular fashion”, meaning everyone continues making the agreed payment until all members have received their turn. MAF Lending Circles are just one option when it comes to loans for people with poor credit scores - the funds can be combined with other borrowing too.
Lending Circles are 0% interest with no fees. MAF services the loans and reports on-time installments payments to all three major credit bureaus, which can help people build their FICO scores. Participants get credit for positive behavior of repaying the loans and MAF also helps people repair their credit in other ways too. While of course the monthly payment varies by the loan size, typical monthly payments are $50 to $200, and circles include 6 - 12 people with loan amounts generally ranging from $300 to $2,400 over several months.
Mission Asset Fund designed this to be safe and convenient. Payments and disbursements are handled electronically, and the organization emphasizes data security. The structure mirrors trusted cultural practices (tandas, susus, cundinas, etc.) but adds the benefits of U.S. credit reporting. Having a decent credit score is key for renters trying to qualify for an apartment, families seeking lower-rate car loans, or some employers even check this when making hiring decisions.
Eligibility, where available and what you need to apply to Lending Circles
You apply through MAF’s portal and either join a provider near you or, where available, an online cohort. Start at MAF’s Lending Circles page (website here: https://www.missionassetfund.org/lending-circles). Then click Apply, and use the search tool to find a provider by ZIP code.
To verify identity and enable credit reporting and electronic payments, MAF requires a valid government ID, SSN or ITIN, proof you own a checking account (such as a voided check or bank statement), and proof of income (recent pay stubs, bank statements showing deposits, or a benefits letter). These documents are uploaded during the application process.
MAF operates nationwide through a network of nonprofit partners and also recruits new providers so the program continues to expand. Many local community action agencies also participate. If there isn’t a provider near you now, MAF encourages checking the portal again as partners are added. Check back or ask about upcoming cohorts.
After your online education is complete, you’ll be enrolled into a circle, sign your promissory note, and begin making your monthly contribution. MAF handles the servicing and reporting throughout the term.
Why this matters for low and moderate-income households
Without a scored credit file, everyday necessities become pricier: security deposits are higher, utility connections can require more cash, and emergency borrowing often defaults to predatory products. A Lending Circle gives you a documented, on-time payment history at no interest, improving access to mainstream credit and lowering costs over time. Independent write-ups and interviews with MAF underscore that the program is designed to transition people into the financial mainstream specifically by building credit safely - or even look here for other options for interest free loans.
It is important to note that Lending Circles loans are not emergency cash. You may not receive funds in the first month, depending on your group’s rotation. Plan accordingly when timing is critical. You’ll need a checking account because payments and disbursements are processed electronically.
Contact information and support
Mission Asset Fund is a registered 501(c)(3) based in San Francisco. The organization lists its address as 3269 Mission Street, San Francisco, CA 94110 and provides a main phone line at (888) 274-4808 for donations and general inquiries; you can also reach them via the website’s contact form.
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