Here’s how it works…

The amount you borrow is deposited into your savings account. No up front deposit is required. You then make regular payments on the loan, establishing a positive payment history. We report this to the credit bureau, and as a result, your  credit score should improve. A higher credit score translates into better rates on future loans and can have a positive impact on the cost of other services including insurance, rental agreements, and employment.

Credit Builder Loans are offered at a low interest rate and since the loan amount is deposited into savings, you earn interest on the amount borrowed, further reducing the cost of the loan. Your net cost to improve your credit is a few dollars a month for the term of the loan. Compare this to the savings you’ll get from lower costs on future services.

Credit Builder Loans are offered for a minimum of $500, up to $2,000. The term on the loan can be anywhere from 9-24 months. As an example, a Credit Builder Loan of $2,000.00 for 24 months, with an annual percentage rate of 3.24% will have a monthly payment of $86.18. There is no prepayment penalty. You must be at least 18 years old to qualify. All loans are subject to approval. Rates, terms, and conditions are subject to change.

When the loan is paid in full you can withdraw the funds from savings and put it to a variety of uses – the down payment for a major purchase that could now be financed at a better rate; or an emergency fund for unexpected expenses; maybe you use it to pay off other debt, freeing up income and further improving your credit score.