Wondering how to establish or rebuild your credit? If so, you probably have a purchase you would like to make that requires a good credit score. With a Tyndall Credit Builder Loan, we can help you on the path to your financial goals!
What is the Credit Builder Loan?
The Credit Builder Loan is a starter loan product with a fixed term of $2,000 for 24 months at a low fixed rate. Tyndall sets up $2,000 in your Savings Account. The monthly payments build up in your Savings Account and are held there for the life of the loan, which builds your credit. Then the money is released all at once when the loan is paid off. Following maturity of the loan, credit is improved and you will have a jumpstart on personal savings that could be used for a down payment on an Auto Loan, Secured Credit Card, Account Secured Loan, Certificate Account, etc.
Who is eligible for the Credit Builder Loan?
The Credit Builder Loan is intended for members looking to establish or rebuild credit. No minimum credit score is needed for the loan. You must be have an income and $20 for the initial deposit. This amount will be held in your Savings Account to cover the first 45 day interest payment if needed and will be released after 90 days. You must not be in active bankruptcy to be eligible for this loan.
How is the Credit Builder Loan different from an Account Secured Loan?
An Account Secured Loan allows you to borrow against your own savings, using it as collateral. Instead of depleting your account to make a purchase, therefore losing out on available cash, you borrow against that amount while your money stays in the account. The Credit Builder Loan is different because you do not have to put a large amount of money down. It is a fixed-amount and fixed-term starter loan product. The loan payments are held in your Savings Account and are on hold until maturity.
How is the Credit Builder Loan effective?
The Credit Builder Loan establishes a credit score and payment history. It builds a Savings Account cushion over the course of the 24 month term. With this loan, you are also able to earn dividends on the payments that are held in your Savings Account.
What happens at the maturity (payoff) of the Credit Builder Loan?
At this time you have $2,000 to invest, continue saving, or use for a purchase. The loan is reported on your credit as an installment loan. This means that over the life of the loan, as long as on time payments have been made, you will be on your way to building your credit report and increasing your credit score.
What are some advantages of the Credit Builder Loan?
- No minimum credit score is required.
- Low initial deposit amount.
- Easy, stress-free way to establish or rebuild credit.
- Low interest rate for beginner loan.
- Easy way to save money for the future and reinvest in what you need.