DCU Credit Builder Loan
Whether You're Starting Out or Starting Over, a Credit Builder Loan is a Great Way to Build Your Credit History.
The easiest way to rebuild your credit
With a Credit Builder Loan, the amount you borrow is deposited into your DCU savings account. You make regular payments on the loan, establishing a positive payment history we report to the credit bureau. As a result, your credit score improves. A higher credit score translates into better rates on future loans and can have a positive impact on the cost of other services including insurance.
DCU Credit Builder Loan Features
- Loan amount of $500 – $3,000
- Terms of 12 to 24 Months
- Loan funds are deposited into a DCU Savings account where it will earn dividends at the published dividend rate for this account
- Loan Interest Rate Fixed at 5% Annual Percentage Rate (APR)
- Once you have fully repaid your loan, you'll have the full balance in the DCU Savings Account, including dividends, to use as you please – for a down payment, education, home improvements, anything
Example loan payment schedule: A $1,000 Credit Builder Loan with an APR of 5.00% for 18 months has an approximate monthly payment of $57.79.
Benefits of a DCU Credit Builder Loan
- Provides a source of credit that may not be available elsewhere at such a low rate.
- A monthly report of your satisfactory payment history will be sent to the credit bureau thereby re-establishing creditworthiness over time.*
- Provides a low monthly installment payment that you really can afford.
- Promotes improved savings habits. The funds are deposited into your DCU Savings account as collateral where they will also be earning dividends.
- After a minimum of 12 months of satisfactory payments, receive a .50% discount off the interest rate on your next qualified consumer loan. **
*Satisfactory payments are those received by DCU on or before the due date for at least the scheduled payment amount.
**Real Estate and Credit Card loans do not qualify for the discount. The granting of a Credit Builder Loan does not guarantee future loans. All loans are subject to credit approval.
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Digital Federal Credit Union220 Donald Lynch Boulevard PO Box 9130 Marlborough, MA 01752-9130 508.263.6700 • 800.328.8797
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© 2011. Digital Federal Credit Union
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