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Credit Builder Loan

Regular Contributor

Credit Builder Loan

DH and I went to our credit bureau this morning and got their credit builder loan.  It's $1000 to be paid back in 12 months.  The loan is deposited into our savings account and frozen for a year.  We make bi monthy payments of $46.  At the end of the year they release the 1000 to us.  Interest rate was a little over 6%.  They report to all 3 credit bureaus and said it would appear as a "revolving" account on our CR.  Basically I guess we're "buying" our credit.  It'll cost us a little under $200 to have this loan and build a good history with our CB along with hopefully pushing our FICO up a bit.
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Message 1 of 6
5 REPLIES
Frequent Contributor

Re: Credit Builder Loan

That is interesting. This almost sounds like what some companies did with the buying your way as an AU that FICO just slammed the door on.
Message 2 of 6
Regular Contributor

Re: Credit Builder Loan

 
 
~nevermind..I figured it out! lol 
 
But how do you liken being an AU to actually having a loan from a legit lender? 


Message Edited by kims on 07-13-2007 01:21 PM
911 Operators....America's Lifeline!
Message 3 of 6
Frequent Contributor

Re: Credit Builder Loan

Because you dont have access to the actual money until you pay off the loan. I understand the concept but to me its like applying for a Line of Credit and I cant touch it until I pay the lender X amount of money.
Message 4 of 6
Established Contributor

Re: Credit Builder Loan

Lasalle Bank has that same loan program for rebuilding credit with a prime lender.  
 
 
Message 5 of 6
Regular Contributor

Re: Credit Builder Loan

I kinda see what you're saying...we didn't find out until we got to the CU that it would be frozen in our savings.  I can think of alot of things I could have done today with an extra $1000 but that mentality is part of the reason I'm where I'm at today with my credit.  It's a good lesson for DH and I ~ we need to learn to leave money sitting sometimes.  I came from a family that would blow and go and never learned how to be financially responsible.  So..there that 1k sits and hopefully in 1 years we'll be a little wiser on how it's spent. Smiley Happy
911 Operators....America's Lifeline!
Message 6 of 6