- Credit Builder Loan
Why Apply for a Credit Builder LoanPAFCU has a variety of savings and investment programs designed especially for you. We offer competitive dividends on our prime share accounts, money market accounts and share certificates.
If you have poor or no credit, you may not qualify for the types of accounts—credit cards, personal loans, etc.—that could help build your credit. At PAFCU, we want to assist our Members to not only improve their financial stability but to save money while doing it!
How Credit Builder Loans Work
For this type of loan, the credit union holds the amount you borrow—up to $5,000, frozen in a prime share account. Payments can be set up from payroll, transfer or coupon payments. As you make your timely payments, it will be reported to Experian (one of the major credit reporting bureaus). Payment history is the most important component of your credit score, which means the reported on-time payments could help lift your score.
When the loan is completely paid off, the funds will be available to you. Credit Builder Loans are just one of the many benefits to being a CU Member as this type of loan is not available at every financial institution. To learn more, contact a CU Loan Specialist at 631-434-3500 today!