CreditBuilder is a loan product designed to help members with no credit, little credit, or unfavorable credit. The program focuses on building or rebuilding your credit score. By improving your credit score, you are likely to get better rates on loans, and save a lot of money in the process.
How it works
The money you borrow from LFCU is put into a savings account on your behalf. It's held as collateral, and earns the standard savings rate. The loan is then repaid on a monthly basis at a very favorable interest rate. When your loan is completely paid off, the money you initially borrowed is released to you — it's no longer held as collateral. So in the long run, you will have saved up a nice chunk of money, and, by making regular loan payments on time, you will have established credit or potentially improved your credit score.
How your credit score affects your wallet
$20,000 Auto Loan Over 60 Months:
|599 or less||13.75%||$462.78||$27,766|
The higher credit score results in a potential $5,000 savings!
Example for illustration purposes only. Actual LFCU rates may differ.
An "upside down" savings account.
Get2.02% APY* on your first $500!Get Details
*Annual Percentage Yield