Credit Builder Loan

[jinxd]

Does anyone know which banks/CU's offer credit builder loans that don't require $ out of pocket to secure? I'm a member with both NFCU and PenFed but both require the $ up front to secure their CB loans. As a single mom just out of BK I don't have a whole lot to put up and can't risk tying up what little savings I've accrued in the past couple months. I found one local CU that issues the loan and secures those funds in a CD until the loan is paid, exactly what I need,  but they have a ton of complaints about incorrect credit reporting, like late payments, incorrect amounts and not reporting after an account is paid off. Issues like that would defeat the whole purpose.

Who else secures the loan via the loan funds?

Or... do we know how lenient Penfed is with small personal loans? I spoke to them about the cb loan but haven't tried applying for an unsecured loan with them. 

[Anonymous]

https://www.selflender.com/

There is ZERO upfront money for this loan.  Im enrolled now and have made 4 payments.  Its on all three CRAs and at the end I get almost all the money back minus their interest which is like $76.

[Datx]

DCU offers a credit builder loan. However, I am not sure what score requirements are needed. 

https://www.dcu.org/loans/credit-builder.html

[Anonymous]

As CreditNewGuy said, selflender.com has no money upfront. Haven't made my first payment yet but that's coming up on the 3rd of August. Also takes them a little bit to report to all three CRA's but will report. I pay 97 a month so I'll get roughly 1100 something back after the 12 months. Good way to save money and build your credit back up

[jinxd]

Thank you!

I'm waffling on the selflender loan, mostly due to the one amount/term but it still might be my best option. I can't believe someone hasn't started lending like this before, it's genius.

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@Datx wrote:

DCU offers a credit builder loan. However, I am not sure what score requirements are needed. 

https://www.dcu.org/loans/credit-builder.html

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I'm going to call and verify some info tomorrow. Everything I can find via google says I may not even qualify for membership with DCU. There are multiple reports that a minimum EQ of 580 is required but I haven't found anything more recent than 2014 so hopefully that has changed.  My EQ report is a mess and everytime I dispute something that's inaccurate, they make it worse but if I can still get in on a 550 I'll go for it. As far as I can tell, there aren't any further credit requirements for the cb loan so if I can qualify for membership I should be okay to get the loan.

[Anonymous]

OP,

Please let us know your progress. I should have my discharge in a few weeks and was also looking for a CB loan that didnt require the money up front. So I would love to see which one works out for you

[jinxd]

DCU is out for now. Two reps have verified that a EQ 580 minimum is required to join AND they won't do the credit builder loan until 2 years post discharge. Yeah, even the CB loan. Silly.

I want to do a little more research on selflender before pulling the trigger. I'm still not loving that $1100/12 month is the only term available but that alone won't stop me, they are a very new company though and I haven't been able to dig up much on them outside of their own website. 

[Datx]

Hi jinxd. I'm glad you got that info from the DCU reps. I sent them an email and all I got was...

Thank you for your email regarding a Credit Builder Loan. 

My name is <blah blah) and it is my pleasure to assist you today. You will need
to submit a loan application in order for a Consumer Loan Representative
to determine if you are eligible for this loan as we do not have a set 
minimum credit score. You can submit a loan application over the phone 
by calling us at 800-328-8797 option 3.

If you have any other questions or need additional assistance, please 
reply to this email and I or any of the E-Team Specialists will be very 
happy to assist you further.

With all this valuable info, I would have applied and taken a hard INQ and probably a slap in the face for even applying 

[jinxd]

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@Datx wrote:

Hi jinxd. I'm glad you got that info from the DCU reps. I sent them an email and all I got was...

Thank you for your email regarding a Credit Builder Loan. 

My name is <blah blah) and it is my pleasure to assist you today. You will need
to submit a loan application in order for a Consumer Loan Representative
to determine if you are eligible for this loan as we do not have a set 
minimum credit score. You can submit a loan application over the phone 
by calling us at 800-328-8797 option 3.

If you have any other questions or need additional assistance, please 
reply to this email and I or any of the E-Team Specialists will be very 
happy to assist you further.

With all this valuable info, I would have applied and taken a hard INQ and probably a slap in the face for even applying 

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Yep....that was the reply I got when I asked about score requirements on the loan. It was like pulling teeth to get the rest of the info during the phone call and later the chat. I started the chat session just to verify the info I had gotten earlier and they still kept repeating "We can best determine eligibility if you submit an application". Um, how about y'all give me some info so I know if it's worth it first? Both reps were incredibly polite but geez, it's not like I was trying to trick them into giving me state secrets.

[srloring13]

I got a credit builder loan from DCU about 1 year post discharge in 2014.  I only asked for $1,000.00.  Hopefully the two year requirement is not accurate.