Credit Builder Information.

[Lasardo]

I have received numerous requests about information about the Credit Builder accounts offered by M&I/BMO bank, Unfortunately M&I is only out of 6 states (Arizona,Florida,Milwaukee,Wisconsin, Indiana and Florida) fortunately several of you have sent me information about the credit builder that is offered by other banks, Credit Unions and websites that provide additional information about the Credit Builder. 

To recap:

> You  borrow an amount between $1000 and $5000 that is saved in your name in and interest earning Certificate of Deposit. 

> You select the desired length of time to repay the loan with regular monthly payments (minimum 24 months maximum 60 months)

> You EARN interest through the CD during the course of the loan and receive the principle and interest when the loan is repaid.

> On time consecutive payments are reported to the credit Bureau, helping you establish a positive repayment history. 

* be advised the above info is for M&I/BMO only, it may be different for CU.

For M&I/BMO the payment is .44% of the chosen amount (I went with 2k, my payment is $88 a month) 

I was approved with a EX score of 597. It is listed as an "installment loan" 

Credit  Builder loans are a way to do a couple of things: get something good on your  credit report and set aside some money for future use. 

I was advised NFCU has a "shared personal secure loan" and if you Google  "Credit Builder NY times" there is a great article to read about Credit Builder accounts. 

Also,  "asmarter choice. Org"provides you with the option to find a credit union in your area that offers the  Credit Builder. 

Good luck 

[Lasardo]

Bump

[rckstrscott]

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@Lasardo wrote:

I have received numerous requests about information about the Credit Builder accounts offered by M&I/BMO bank, Unfortunately M&I is only out of 6 states (Arizona,Florida,Milwaukee,Wisconsin, Indiana and Florida) fortunately several of you have sent me information about the credit builder that is offered by other banks, Credit Unions and websites that provide additional information about the Credit Builder. 

To recap:

> You  borrow an amount between $1000 and $5000 that is saved in your name in and interest earning Certificate of Deposit. 

> You select the desired length of time to repay the loan with regular monthly payments (minimum 24 months maximum 60 months)

> You EARN interest through the CD during the course of the loan and receive the principle and interest when the loan is repaid.

> On time consecutive payments are reported to the credit Bureau, helping you establish a positive repayment history. 

* be advised the above info is for M&I/BMO only, it may be different for CU.

For M&I/BMO the payment is .44% of the chosen amount (I went with 2k, my payment is $88 a month) 

I was approved with a EX score of 597. It is listed as an "installment loan" 

Credit  Builder loans are a way to do a couple of things: get something good on your  credit report and set aside some money for future use. 

I was advised NFCU has a "shared personal secure loan" and if you Google  "Credit Builder NY times" there is a great article to read about Credit Builder accounts. 

Also,  "asmarter choice. Org"provides you with the option to find a credit union in your area that offers the  Credit Builder. 

Good luck 

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So you cannot pay this loan off ahead of time eh? You have to stay set to the payment schedule?

I don't think I will be looking to buy a car anytime soon; but I wouldn't mind having an installment loan to add to my mix for the future, since I have store cards, a prime card, bank card and a mortgage soon to report..

Does the CD opened start accruing interest rights away? Meaning the bank loans you the 2k, opens up a CD, but you jusyt don't have access to it until you repay the loan fully correct?

-scott

[Lasardo]

Correct. The bank/credit union opens an account in your name as a CD, you start earning interest immediately on the loan but the funds are available in the selected time frame( 24-60 months. )
My loan is $2000, it will be available to me in 24 months, I pay .44% ($88.00 a month)
It will be listed as an installment loan on your report, on time payments will be reported to the credit bureaus, establishing credit, showing you can make responsible payments.
I love the fact that you can save and build credit.
Hope this outlines a little better.. But it sounds like you have the right idea "eh" lol
Good luck.

[rckstrscott]

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@Lasardo wrote:
Correct. The bank/credit union opens an account in your name as a CD, you start earning interest immediately on the loan but the funds are available in the selected time frame( 24-60 months. )
My loan is $2000, it will be available to me in 24 months, I pay .44% ($88.00 a month)
It will be listed as an installment loan on your report, on time payments will be reported to the credit bureaus, establishing credit, showing you can make responsible payments.
I love the fact that you can save and build credit.
Hope this outlines a little better.. But it sounds like you have the right idea "eh" lol
Good luck.

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For a Chicago dude, I use eh a lot more than I should..

What, am I from Canadia eh?

-scott

[OptimalFICO]

Thanks for taking the time to post about this, it's helpful info and a great option for many folks.

[Lasardo]

Bump

[Lasardo]

Last time "bumping" 

Hope this info is useful to someone. 

[madmann26]

Can we get this stickied if at all possible? It's very useful information!!

[Lasardo]

Stickied?