Credit Builder Loans are an easy, low-cost way to improve your credit. You don't actually use the loan money: the only purpose of the loan is to sit on your credit report, building a positive credit history.

1. You get a small loan, usually $300 to $2,000, at a low interest rate - fixed at just 3.95% APR.*
2. Our credit specialists will come up with a repayment term that works for you -- usually 6 months to 3 years.
3. Proceeds from the loan go straight into a separate, restricted savings account that is frozen until your loan is paid down. Each month, you make a loan payment to the credit union, and we report your activity to the credit bureaus.
4. Once your loan is paid off, the money in your savings account is unfrozen. You now have a savings stash with the same amount of money as the original loan amount!

Because of their low interest rate, Credit Builder Loans are inexpensive to use. For example, borrowing $1,000 for a year costs you only $21.32 in total interest paid.** We charge a small Loan Documentation fee of $15, which can be financed into the loan if desired. There are no application fees, and no prepayment penalties if you pay early.

In addition to building your credit, a Credit Builder Loan is a great way to create your rainy-day fund, create an emergency fund, plan ahead for your holiday budget, or save for a down payment on a car, home, or appliance. 

A Credit Builder Loan may be just right for first-time borrowers, people who don't have a credit score or individuals who have damaged credit. Our credit specialists will look at your entire financial situation, discuss your goals, and help you evaluate whether a Credit Builder Loan would benefit you.