How it Works
A Credit Builder Loan is designed to help you establish or improve your credit* while building savings at the same time. Whether you're starting your credit journey or working to rebuild your financial reputation, this loan provides an easy and effective solution. With a Credit Builder Loan, funds are placed into a secure savings account while you make fixed monthly payments, which are reported to the credit bureaus to help strengthen your credit history. Once the loan is repaid, you’ll not only have improved credit but also a fully funded savings account, giving you the tools and confidence to achieve your financial goals.
Apply
The application is available through online banking or our mobile app
Make Payments
Your loan funds are held and earn dividends in an UCSCU savings account while you make scheduled payments for the full term of the loan.
Establish Credit
Make consistent monthly payments to help establish a positive credit history as your activity is reported to national credit bureaus
Receive Funds
Once your loan is paid in full, the funds become available for you to use
Frequently Asked Questions
What is a Credit Builder Loan?
Whether you’re starting fresh or picking up where you left off, our Credit Builder loan is a great way to establish or restore a positive credit history and build your savings at the same time!
When do I receive the funds?
Your funds and earned dividends are held in a secured savings account while you make monthly payments on your loan. Loan funds are then made available when your loan is paid in full.
Can I pay off the loan early?
Regular monthly payments are important to building a positive credit history. If you secure a Credit Builder Loan, you should plan to make consistent payments through the loan’s scheduled completion date.
How much will the loan improve my credit score?
There's no guarantee as to how much a Credit Builder Loan will improve your credit score because there are many different variables that can impact your credit score. However, your credit report will reflect your successful completion of on-time, scheduled payments – an important factor in improving your score.
Is there a fee to get the loan?
There are no application or origination fees for the loan.
Once I pay off the Credit Builder Loan, will I qualify for another loan with UCSCU?
Completing a Credit Builder Loan doesn’t automatically qualify you for additional loan products, but we do consider several factors when reviewing your loan request - including credit history and financial standing. Therefore, successful completion of your Credit Builder loan can provide evidence of your financial responsibility.
What's the difference between a Credit Builder Loan and a Personal Loan?
A Credit Builder Loan is designed to establish a positive credit history while building savings for the future. Loan funds are placed in an account for safekeeping while you make scheduled payments.
A personal loan provides funds that are available immediately for your use.
*Results are not guaranteed and the improvement in your credit score is dependent on your financial behavior. Even if you are paying your loan, credit problems on other accounts you own such as late payments, missed payments and other defaults may impact your credit score. This loan will not remove negative credit history from your credit report. APR = Annual Percentage Rate. APR is subject to change. The rate listed assumes a loan term up to 24 months. The rate is subject to credit certification and approval. The minimum loan amount of $500 is required to earn dividends. The dividend rate and annual percentage yield (APY) may change at any time. Dividends are calculated by the daily balance method which applies a daily periodic rate to the balance in the account each day. The dividend period for this account is monthly. Dividends will begin to accrue on the business day loan proceeds are placed into the account. If the account is closed before accrued dividends are credited, accrued dividends will not be paid. No withdrawals are allowed during the repayment of the loan. Loan funds and dividends earned will be moved to a regular savings and become available for use after full repayment of the loan.
