Credit Builder Loans

Building Credit

Good credit is very important. Your credit score affects your ability to get a loan, and determines the loan and credit card interest rates you pay.
Tired of paying higher rates because of your credit score? We can help.
Cooperative Federal specializes in helping members to establish or re-establish good credit.

The Credit Union has many methods to help members build good credit and raise credit scores, including Credit Builder loans, debt consolidation, and credit counseling and advice.
Cooperative Federal provides free credit advice and counseling to members. There is no obligation - providing free counseling and education is part of our mission to financially empower our members and community!

Contact our loan department for help with your credit, at (315) 471-1116 ext. 697.

Credit Builder Loans

One of the tools that we use to quickly build credit is an inexpensive (3.95% APR) Credit Builder installment loan.

With a Credit Builder Loan, you may:

  • build a positive credit history by paying on time
  • demonstrate ability to make regular loan payments
  • generate "installment loan" credit history to improve your credit score
  • allow you to get better loan rates in the future
  • save as the loan is paid down, for a downpayment or other large purchase

How does it work?
Loans are secured by the proceeds of the loan. The loan funds are placed in a special Omega saving account, which does not earn dividends. The amount borrowed is frozen in this account until the loan is paid in full. As the principal is reduced, the amount frozen in the share account is reduced.

Credit Builder loans can have any term between six months and 3 years. Loan costs are minimal: borrowing $1,000 for a year costs you only $21.32 in total interest paid. There are no charges for setting up the Credit Builder loan and no prepayment penalties if you pay early.

A Credit Builder loan may be just right for first-time borrowers or individuals who have damaged credit. Our credit specialists will look at your entire financial situation and your goals and can advise you in the best ways for you to build your credit and achieve your other financial goals. We can help you to evaluate whether you can benefit from a Credit Builder loan.

Credit Builder Loans will only be made to members who have the income capacity to repay the loan. To build a good credit history or repair problems affecting your credit report, consider a Credit Builder Loan.

Cooperative Federal accounts are federally insured by NCUA Cooperative Federal is an Equal Housing Lender
Cooperative Federal is an equal housing lender
Cooperative Federal accounts are federally insured by NCUA