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Altura CU - Credit Builder Loan

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AeroKrix
Frequent Contributor

Altura CU - Credit Builder Loan

Has anyone ever seen this type of loan. Geared specifically towards poor-fair credit score.

 

https://www.alturacu.com/personal/borrowing/credit-builder

 

basically, you open a loan, make monthly payments, and at the end of the term, you get the money. at first I thought it was a secured/CD loan, but they fund a CD (earns interest) and you just make payments. It's supposed to help you build diversity in your credit mix as well as help you develope a stable payment history.

 

im sure the interest will be very low, comparable to a CD loan interest? I'm able to qualify for membership and if this can actually help, I'll do it.

 

any thoughts on this?

Current 09/01/2021 EQ - 515 FAKO ; EX - 591 FICO ; TU - 598 FICO

Venmo CC $5.0K || Paypal Cashback CC $2.0K || Walmart CC $3.0K || CapOne QS1 $700 || CapOne QS $800 || Mission Lane $1.5K || Merrick $1.0K || AMEX Optima $500
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1 REPLY 1
gdale6
Moderator Emeritus

Re: Altura CU - Credit Builder Loan

This is an instalment loan (secured by CD), I would not go for it and pay interest, this only helps in the mix of credit category. Revolving credit cards are where its at for FICO, 30%  of the score is devoted to utilization percentages of revolvers. I would go for a secured bankcard over this type of loan.

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