Credit Building Loans
We want to put our Members on The Road to Financial Success and a credit building loan is one of the best ways to build credit. That’s why we’re introducing the HHCU Credit Building loan options. A Credit Builder Loan is beneficial for those who would like to repair credit, but also for those who are building a credit history for the first time. Not only are you able to repair/build credit, you are also creating the habit of keeping a savings account.
Why is a Credit Building Loan the best way to build credit?
A credit building loan is designed to help improve a credit score. It’s both low-risk and manageable. HHCU has two credit building loan options for our members: the Credit Builder Step-Up Loan and the Credit Builder Single Loan.
Credit Builder Step-Up Loan: A member or potential member will be put on a plan to start off with a $1,000.00 loan and then progress through to a $5,000.00 loan. The proceeds of the credit building loan are frozen in a savings account until the loan is paid in full. Payments are flexible and can be set up weekly, monthly, bi-weekly, etc. Interest rates are fixed and decrease during each phase of the loan.
Credit Builder Single Loan: You do not have to progress through the step-up process if you do not want to. You can choose to start with a $1,000.00 loan or a higher dollar amount and pay that loan in full, without going through the multiple levels of the Step-Up Loan. The proceeds of the Single Loan are still frozen in a savings account until the loan is paid in full. Loan rates are based on creditworthiness and credit score.
Contact us or stop by today to discuss the best ways to build your credit and see if our credit building loan options are right for you.
IMPORTANT: If you want to rebuild your credit score, make sure to make your loan payments on time, every time. This is the best way to build good credit. Try our free online Bill Pay service through Online Banking to set up automatic payments up to a year in advance.
Check out our great rates here.
Need some direction?
Please contact us with any questions or concerns.
If you prefer, you can call us at 713.864.4438 or toll-free at 800.354.3541.