Blog | Build Credit History and your Piggy Bank at the Same Time!
The Credit Builder and Savings Builder loans at R1CU are specially designed loan types to help our members uniquely. These loans can be used to:
- Help build credit history
- Build savings
- Teach payment responsibility
- Provide a commitment to saving money
- And more
Members can befit from these loans financially, but they also come with other advantages such as:
- No credit report is needed for approval
- Fixed-rate
- Borrower sets the term/amount
- Secured loan without added collateral
Can you pay the loan off early? Yes! Will it help with building your credit? No. Can being late on a payment negatively affect your credit history and credit score? Yes. Do you need a good credit score for this loan? No, no matter what your score, you will get the same rate as anyone else who applies for this loan.
Important tip! If you want to rebuild your credit score, make sure to make your loan payments on time. This is the best way to build good credit. Most lenders will offer free automatic payments; be sure to set up this feature and ensure your payments are always on time. If you need additional help, our Budget Buddies are available to help set up a budget or other financial needs. We also offer Credit Score by SavvyMoney within online and mobile banking to get personalized tips on improving or maintaining your credit score.
If you want to start a Credit Builder or Savings Builder loan, you can start online, in person, or by calling us at 800-375-3674.
