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Credit Builder Loans
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.
Contact our loan department at (315) 473-0242, or reach our financial counseling team at (315) 476-1451.
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:
- improve your credit score by paying on time and adding a positive record to your history
- qualify for 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 restricted saving account, which does not earn dividends. The amount borrowed is frozen in this account until the loan is paid down. That means when you finish paying off the loan, you will have a lump sum of savings at your disposal! Use it toward your downpayment on a home or car, set it aside for your holiday or vacation expenses, or use it as an emergency account.
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. We charge a small Loan Documentation fee of $12, which can be financed into the loan if desired, and there are 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 reach a savings goal, consider a Credit Builder Loan.