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Credit Builder Loan

Whether starting out or starting over, a great way to build your credit history




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credit builder

Credit Builder Loan

  • Build or rebuild your credit rating
  • Build savings while you borrow
  • Terms from 12 to 24 months
  • Low fixed rate

"Almost paid off"

Open quote I received the loan to pay off my High Rate credit cards. The payment plan was manageable, and the skip payment worked great for Christmas, and I'll have it paid off Soon! Close quote

— Douglas53, Marysville, OH

Credit Builder Loan Overview

The Credit Builder Loan is specifically designed to help you build or rebuild your credit history as you build up to $3,000 in savings plus dividends. Here's how it works...

  • The amount you borrow is deposited into a DCU savings account that you cannot touch until the loan is repaid.
  • You make regular payments on the loan.
  • As you repay on time, you establish a positive payment history that we report to the credit bureaus.*
  • Based on those reports, your credit history and credit score improves over time.
  • A higher credit score translates into better rates on future loans. It can also have a positive impact obtaining insurance and certain jobs that consider credit history.
  • When you finish repaying the 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.

Credit Builder Features

  • Loan amounts from $500 to $3,000
  • Terms from 12 to 24 Months
  • Loan funds in the DCU Savings account earn dividends at the published dividend rate for this account
  • Loan interest rate is fixed at 5% Annual Percentage Rate (APR)
  • After a minimum of 12 months of satisfactory payments, you'll receive a .50% discount off the interest rate on your next qualified consumer loan. **

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.

 

* 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.


Credit Builder Loan Rates

Whether You're Starting Out or Starting Over, a Credit Builder Loan is a Great Way to Build Your Credit History.

Terms / Features Our Best Rates*
  Annual Percentage Rate Estimated Monthly Payment
per $1,000
Up to 24 Months
Maximum Loan Amount $3,000
5.00% $57.79

Rates are effective .

* Rates are determined by your personal credit history, account relationship, and payment method.


Credit Builder Loan 3.7 5 3 3
best financial experience to date I have gotten the best financial experience ever. Am so grateful to dcu for making this experience a reality October 18, 2014
almost paid off I received the loan to pay off my High Rate credit cards. The payment plan was manageable, and the skip payment worked great for Christmas, and I'll have it payed off Soon..... May 23, 2011
Needs Clarification Better clarification is needed, as this is the same loan product as the savings secured loan. While reviewing my options the secured loan states there is a “pledge” while the credit builder does not. The credit builder loan implies that DCU will provide a loan in the amount you requested, not to exceed the 3k, and will deposit and hold these funds in a savings account. Once the loan has been paid in full the funds would be released for the member to use. The only difference between the loan products are the terms, rates, and amounts requested. In my opinion, the consumer is much better off with the secured loan as you will have a much lower interest rate. This is off the DCU website. Credit Builder Loan Overview The Credit Builder Loan is specifically designed to help you build or rebuild your credit history as you build up to $3,000 in savings plus dividends. Here's how it works... • The amount you borrow is deposited into a DCU savings account that you cannot touch until the loan is repaid. Savings-Secured Loan Details • Preserve your hard-earned savings – It can take a long time to build up your savings and a short time to spend it. With Savings-Secured Loans, you can use your savings as collateral, borrow at economical rates, and keep your savings intact. While pledged as collateral, your savings continues to earn competitive dividends. • Borrow against your DCU Savings Account balance – Rates on loans secured by a DCU Savings Account are a flat rate. Borrow as little as $200 and borrow for as long as 10 years. January 31, 2014
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(22 Questions : 24 Answers)

Product Q&A

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My son needs about $1000. for expenses at college. I would like him to have a loan in his name to build credit. Can he use my home equity to loan against to get a lower rate
State: Massachusetts
Age: 55-65
DCU Member for: Over 20 years
2 years, 11 months ago
Member avatar
by
Geo
Maynard
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Answer: 
If you wish to apply for a Home Equity Loan against your home for the $1,000 needed and list your son as a co-borrower to assist him in building credit, that option is available. Please give us a call at 800/328-8797 option 3 to proceed with applying.
State: Massachusetts
 
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2 years, 11 months ago
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by
DCU Staff
Marlborough
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Answer: 
Why not apply for a student loan and apply for a secured credit card?
State: California
Age: 25-34
DCU Member for: Haven't joined yet
2 years, 11 months ago
Member avatar
by
Myname
Belmont
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If I needed the loan paid off before 12 months, is that possible?

Also, If I signed up for a 24 month term, could I pay it early in like 15 months if I wanted?

Thank you
State: New Hampshire
Age: 18-24
DCU Member for: Less than 1 year
2 years, 1 month ago
Member avatar
by
Kate
Nashua
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Answer: 
You should be able to pay it off early, but be aware that they pull two hard inquiries on your Equifax credit report. One for opening your savings account and another for applying for the loan even if it is secured.
State: California
Age: 35-44
DCU Member for: Less than 1 year
1 year, 3 months ago
Member avatar
by
TRW
Orange County
+2points
2out of 2found this answer helpful.
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Answer: 
All DCU loans, including the Credit Builder Loan, may be paid off early without incurring any prepayment penalties.
State: Massachusetts
2 years, 1 month ago
Member avatar
by
DCU Staff
Marlborough
+3points
3out of 3found this answer helpful.
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State: Massachusetts
Age: 25-34
DCU Member for: Haven't joined yet
3 years, 11 months ago
Member avatar
by
shasta
townsend
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Answer: 
You will need to submit a loan application in order for a Consumer Loan Representative to determine if you are eligible for this loan. You can submit a loan application from our website by selecting "Apply for Loans" from the DCU home page or by calling us at 800-328-8797 option 3.
State: Massachusetts
3 years, 11 months ago
Member avatar
by
DCU Staff
Marlborough
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Hi, I have to owe some money to my friends. Can I use the credit builders loan to settle the money that I owe to my friends. Please explain.
State: New Jersey
Age: 35-44
DCU Member for: Less than 1 year
3 years, 7 months ago
Member avatar
by
Ramesh
Hackencsack
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Answer: 
A Credit Builder Loan is a collateral based loan determined by the amount you wish to deposit into a DCU Savings account, between $500 to $3,000, that you wish to borrow against to build your credit history. You may determine your eligibility for this loan by applying.
State: Massachusetts
3 years, 5 months ago
Member avatar
by
DCU Staff
Marlborough
+3points
3out of 3found this answer helpful.
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State: Georgia
Age: 55-65
DCU Member for: Haven't joined yet
3 years, 2 months ago
Member avatar
by
CLT
Atlanta
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Answer: 
A number of factors come into consideration when determining a member's eligibility for a DCU Home Equity, therefore, you will need to apply in order for our Mortgage Department to make a decision. You may easily apply by calling us at 800/328-8797 option 3.
State: Massachusetts
 
Products related to my answer
 
3 years, 2 months ago
Member avatar
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DCU Staff
Marlborough
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"DCU is great!"

Open quote Getting a loan from DCU could not be any easier. The people work with you to make sure you know what to do and how things work... Great job! Close quote

— MO Dually, Kansas City, MI

Easy Ways To Apply Today

  1. Apply Online – 24 hours a day, 7 days a week.
  2. Apply by phone – 24 hours a day, 7 days a week call 800.328.8797 or 508.263.6700 and press 3.
  3. Any DCU Branch – Visit your local branch.

"I'm very happy with my loan"

Open quote Everyone I spoke to was very friendly, helpful, and made me feel valued. Close quote

— Elton, Eagle Lake, FL

Credit Builder Loan Resources

  • Rebuilding your credit ratingStreetWise article on how to rebuild your credit rating.
  • StreetWise Guide to CreditStreetWise guide helps you understand how credit works, how to use it responsibly, how to know if you are having difficulty with it, and what to do if you are.
  • Payment Protection – Helps relieve the pressure of your loan payments during certain unexpected events.

Credit Builder Loan Related Links

  • Calculate Finance Charges – Sometime members have questions about how Finance Charges or Interest on their DCU loan accounts are calculated. This information is designed to make the information in your loan disclosures a little easier to understand.
  • Schedule of Fees and Service Charges – Details regarding member benefits that may help you avoid fees.
Digital Federal Credit Union

220 Donald Lynch Boulevard

PO Box 9130

Marlborough, MA 01752-9130

508.263.6700  |  800.328.8797

ABA Routing Number: 211391825

    

Federally Insured by NCUA

Equal Housing Opportunity

© 2015 Digital Federal Credit Union