Savings and Credit Builder Loan
Bad credit? No credit? In this situation, many people find it hard to get a loan approval when they don’t meet the credit criteria and turn to credit-building methods that put them more at risk. Savings and Credit Builder loans are a great way to build your credit history with less liability than a credit card.
Need help building your credit? Use this loan to build credit history and as an opportunity to establish a positive payment history.
Here’s How It Works
With a typical loan, you receive the funds upfront and pay it off monthly until the loan is complete, but with a Credit Builder, loan payments are required upfront before funds are released. This loan has a fixed rate, and no credit pull is required, so it is a great loan alternative for members who typically couldn’t qualify for other unsecured credit-building methods.
It is never too late to learn good savings habits. Use the Savings Builder loan as a commitment to save money while also building credit and payment history.
Here’s How It Works
This loan’s sole purpose is to help build a credit history while also building savings. The best way to explain this loan is that it works in reverse from a standard loan. In a typical loan, you receive the funds upfront and pay it off monthly until the loan is complete.
A Savings Builder loan requires payment upfront before funds are released. When the loan has been paid in full, you will receive funds into your savings account. This loan has a fixed rate, and no credit pull is required. The best part about this loan is that the member can decide the amount and terms.
|as low as 10.99% APR|
APR= Annual Percentage Rate. Rates, terms, and conditions are subject to change and may vary based on creditworthiness, qualifications, and collateral conditions. Rates refer to consumer loans and do not apply to commercial loans. All loans are subject to approval. Rates as of September 24, 2023. Rates are subject to change without notice.
Let’s Build Together
Complete a short application to get approved for a Credit Builder Loan. You can apply online, in branch, or by phone.
After approval, the funds are secured in a savings account until the loan term is complete—no money down.
All you have to do is make monthly, on-time payments, and Credit Builder loan reports your success to the credit bureaus.
At the end of the term, you get the funds from your secure savings account if you’ve made all your payments. (And the higher credit score.) No strings attached
Great credit leads to great things.
- Better chance for credit card and loan approval
- Potential for lower interest rates on credit cards and loans
- Easier approval for rental houses and apartments
- Better car insurance rates
- No security deposits on cell phone contracts
- Lower to no security deposits on utilities
Top 10 causes of bad credit.
- Late payments (On anything. Student loan, car loan, credit card, you name it.)
- Not paying at all
- Having an account “charged off”
- Having an account sent to collections
- Defaulting on a loan
- Filing for bankruptcy
- Foreclosing on a home
- Getting a judgment
- High credit card balances (relative to your credit limit)
- Maxed out credit cards
Ready to Get Started?
Credit Builder Loans
APR=Annual Percentage Rate. Rates, terms, and conditions are subject to change and may vary based on creditworthiness, qualifications, and collateral conditions. Offer applies to consumer loans and does not qualify for commercial loans. All loans are subject to approval. Restrictions may apply; see credit union for details.
Improvement in credit score is dependent on multiple factors specific to your situation and financial behavior. For example, late payments on utility bills, car loans or credit card accounts would negatively influence your credit score, even if your payments on a Credit Builder Loan are current.
Failure to make required monthly minimum payments by the payment due date for the Credit Builder Loan will result in negative reporting to the credit bureau and will not improve your credit score.
This product will not repair your credit, and negative credit history will not be removed from your credit report as a result of this program.