Credit Builder Loan
With a Credit Builder Loan, a 12, 18 or 24 month Term Share Account (CD) is opened and used to secure the loan in the amounts shown below. By making timely monthly payments, positive repayment information is reported the credit bureaus. In doing so, this may help boost your credit score. Once the loan is paid off, the funds of the Term Share Account are deposited to your primary savings account.
Successful repayment of this loan won’t instantly fix your credit or guarantee additional loan types become available to you. However, it is a starting point in the building or rebuilding process. Should you have any questions about building your credit, please do not hesitate to contact us.
| Term | Amount |
|---|---|
| 12 months | $1,000 |
| 18 months | $1,500 |
| 24 months | $2,000 |
Interest Rates: Please refer to our Rate Sheet for current rates.
Resources for Improving your Credit Score
SavvyMoney Credit Score Tool
Free access to your credit score
With our new credit monitoring tool, SavvyMoney, you now have instant access to your credit score, credit report, personalized money-saving offers, and financial education tips on how to improve your score or maintain an already great one. SavvyMoney is located within Online Banking. Simply log in from your computer or mobile app and click Launch SavvyMoney to get started.
Breaking Down Your Credit Score
How to improve a credit score
Credit scores are broken down into 5 main categories: Payment History, Credit Usage, Total Balances, Credit Age, and Recent Credit. Focus on each of these categories to maximize your score’s potential.
A few tips to get you started:
- Payment History: Pay your bills on time.
- Credit Usage: Don’t keep a high balance on credit cards. Also don’t open new cards just to increase your available limit.
- Total Balances: Keep a diverse mix of debt accounts. A mix of installment and revolving accounts is better than having only one type of debt.
- Credit Age: Don’t open too many accounts too quickly. Keep your oldest account open, if you can. Also, don’t close unused cards.
- Recent Credit: Do not open too many accounts in a short span.
Understanding Credit
Learning About Credit: A 3 Part Series
Understanding Credit: Part 1
Creditworthiness represents a person’s ability to borrow. Credit reporting Organizations use the credit scoring system to determine whether a specific person is creditworthy and attempts to predict the likelihood a person will make payments for goods and services. Two types of credit information play a very big role in determining whether a person has access to credit.
Understanding Credit: Part 2
The credit score used by most lenders is the FICO score. The fico sore is a number that can range from a low 300 to an 850 depending on the model used by the reporting organizations. This score reflects the individual’s ability to pay for services or repay loans. There is a lot of miscommunication about what is included in your score.
Understanding Credit: Part 3
There are several actions that a person can do that will lower the credit score and cause you to be a higher credit risk. In this part we will discuss some actions that can undermine a healthy score.
Rates & Disclosures
Disclosures
Credit Builder Loan Rates
| Starting APR* | Term | Loan Amount |
|---|---|---|
| 12 Month Term Share Rate + 4.00% | 12 months | $1,000 and up |
| 18 Month Term Share Rate + 4.00% | 18 months | $1,500 and up |
| 24 Month Term Share Rate + 4.00% | 24 months | $2,000 and up |
| *APR = Annual Percentage Rate. Rate is dependent upon current term share certificate rates. To view current rates, click here. Rates are subject to change without prior notification. Payment Example: 12 monthly payments of $86.53 for 12 month Credit Builder Loan with Term Share rate of 3.00% dividend rate and loan annual percentage rate of 7.00%. | ||