 TITLE: Can a Lending Circle Help You Build Credit? CONTENT: What Is a Lending Circle?\n-------------------------\nLending circles aren't a new idea. Groups of family, friends and community members around the world form rotating savings and lending circles that go by many names, including _tandas_, _cundinas_, _susu_, _hui_ and _paluwagan_.\nThe basic premise is that every member of a group contributes to a shared pot of money, and one member receives the entire sum. The circle continues until everyone receives their payout. Most lending circles charge low or no fees or interest.\nFor example, you could join a lending circle with 12 people where everyone contributes $100 each month. For the next 12 months, each person puts in $100, and one person a month receives $1,200. The order of distribution may be determined when the lending circle first forms. END