What is a credit builder loan:
1). A credit builder loan helps you improve and/or build up your credit score2). Once you repay the credit building loan you may qualify to borrow more money at a lower interest rate than previously when you first start.
Here are the three steps you need to take to strengthen your credit with a credit building loan:
1). Apply for the credit builder loan at your nearest Self Help Credit Union, or check with your local credit union or bank, when you need to establish your credit history or improve your credit rating.
2). The loan proceeds will be deposited to your self- help credit union savings account and the funds will be on hold until the loan is paid off.
(The borrowed funds are placed in a savings account in the borrower’s name and held as collateral).
3). When you pay off the loan, the hold will be released from your savings and the funds will be available to you, including accured interest.
*******All the while you are building your credit Self-Help Credit Union reports your repayment track record to the credit reporting agency, giving you a chance to build a positive credit history over time.
***** You can borrow $500 to $2000 with up to 24 months (2 years) to repay the loan.
***** The specific loan terms will depends up on your eligibility.
Ready to buy a house, links to get information and help from Consumer Finance:
·For resources, guidelines, and checklists that can help you visit www.comsumerfinance.gov/mortgage
·Want to know more about Consumer finance visit: www.consumerfinance.gov
·Submit a complaint: www.consumerfinance.gov/complaint
·Tell your story: www.consumerfinance.gov/your-story
·Get answers to money questions: www.consumerfinance.gov/ask-cfpb
·Share your thoughts: facebook.com/cfpb
Twitter.com/cfpb
Understanding your credit score: links to get information and help from Consumer Finance: How to receive your credit score: You have the right to request one free copy of your credit report each year from each of the three major consumer reporting companies (Equifax, Experian and TransUnion) by visiting AnnualCreditReport.com. You may also be able to view free reports more frequently online.
·Where can I get a credit report? You can request and review your free report through one of the following ways:
Online: Visit AnnualCreditReport.com
Phone: Call (877) 322-8228
Mail: Download and complete the Annual Credit Report Request form. Mail the completed form to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
To take action promptly to correct errors visit: www.consumerfinance.gov/askcfpb/314
To take steps to improve or better understand your credit visit: www.consumerfinance.gov/consumer-tools/credit-reports-and-scores
