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How to Build Credit [Fast] With a Credit Builder Loan

a lady looks at her Telcoe FCU credit-builder loan account online.

Having good credit is essential for achieving your personal and financial goals. Whether you’ve fallen on hard times or simply haven’t started to build up a credit score yet, it helps to be strategic about improving your credit.

Here’s where taking out a specialized personal loan for bad credit or no credit comes in. These types of secured personal loans can be a great way to increase your credit score and improve your overall financial health.

Keep reading to learn more about our Credit Builder Loan and the benefits of taking out a personal loan to build your credit (quickly).

What is a Credit Builder Loan?

The Telcoe Credit Builder Loan was created to help our members reach their financial goals. This loan is a secured loan product requiring an initial deposit and low monthly payments during the repayment period.

Consumers who wish to take out a Telcoe Credit Builder Loan have the choice of one of the following loan terms:

  • $500 frozen for 12 months - repaid at $12 a week or $23 semi-monthly

  • $1000 frozen for 12 months - repaid $23 a week or $46 semi-monthly

The Credit Builder Loan is your key to achieving the credit history you want and deserve. This product was designed for anyone 18 years old or older who wants to establish a positive credit history or improve their credit score after prior bumps in the road.

How a Credit Builder Loan Works

With a secured personal loan like the Telcoe Credit Builder Loan, you deposit funds into a special savings account accessed only by the lender until your loan is paid in full. At the end of the repayment period, you receive your entire deposit back once your account balance has been paid off.

To open your Credit Builder Loan, you’ll deposit either $500 or $1,000 into your Telcoe savings account, and the funds will be frozen for one year. During this time, as you make your monthly payments, Telcoe will report the positive action to the credit bureau every 30 days.

At the end of this one-year repayment period, you will have received 12 positive marks on your credit report, a new higher credit score, and your funds will be made available to you to withdraw once again.

Telcoe members can simply log into your Easyconnect access and click on the Application button for expedited loan service. To apply, you will need to submit your personal information, employment information, two personal references, and some information on your financial health, such as the amount of your housing payment and your vehicle payment.

Benefits of a Credit Builder Loan

The Telcoe Credit Builder Loan is designed to help you build or reestablish your credit while improving your financial health and preparing for your future. The benefits of this personal loan include:

  • The ability to quickly improve your credit score

  • Monthly reporting to the TransUnion credit bureau

  • Convenient loan amounts between $500 and $1,000

  • Low $15 application fee

  • No hidden account fees

  • Low monthly repayment terms up to 24 months

Why Does Building Your Credit Score Matter?

Having a healthy credit report is crucial for everything from financing a home to applying for employment in some industries. In addition, the higher your credit score, the lower the interest rates you will receive on various financial products throughout your lifetime.

The key to achieving financial success is to build your credit early and maintain a good credit score by making your payments on time and keeping your credit utilization as low as possible.

Ready to Apply For a Credit Builder Loan?

Getting approved for a Telcoe Credit Builder loan is easy. To get started, simply fill out our convenient online application and complete your electronic signature form within the next 1-3 business days. Or you can give our office a call anytime at 501-375-5321. We are always ready to help.

At Telcoe FCU, our members enjoy personalized service, competitive rates, flexible terms, and a variety of unique financial products, from “back to school loans” to life insurance.

Visit the link below to learn more about what documentation and information you will need to apply for a personal loan with Telcoe or another financial institution.


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