Building credit is important. It can save you thousands when it comes time to borrow money for a car or get a credit card. With most lenders, the higher your credit score, the lower your loan rate. Whether you're wondering how to establish credit or you'd like to improve your existing score, a Credit Builder Loan could be for you.
With a Credit Builder Loan, you request a loan amount typically between $500-$1,000. The approved loan amount is placed in your Chesterfield Federal Credit Union savings account, where it will earn interest. The loan balance is paid off over a term of six months to one year. We report your on-time payments to the credit bureau, establishing or improving your credit history. Once the loan is repaid, funds can be withdrawn and used as desired. It's a great way to build credit and to start savings.
Help preserve your standard of living. Whether you're taking out a loan to make home improvements or buy a vehicle, it can be a financial gamble because the unexpected can happen at anytime. You’re betting you won’t lose your job (through no fault of your own), or become disabled (due to injury or illness), or pass away, leaving your family responsible for your loan balance. Life events can cause financial hardship, making bill-paying difficult. You don't want delinquent payments and defaulted loans to cause you to lose your assets, negatively impact your credit rating, or cause financial distress for your family.
CFCU Safety Net* is a voluntary loan-payment protection product that helps you get relief from the financial burden of delinquency, default, or foreclosure if a protected life event unexpectedly occurs. And, simple eligibility requirements ease the enrollment process.
If your loan is protected and a life event happens to you, CFCU Safety Net* will cancel or reduce repayment of your loan debt - helping to lessen worries about paying loans during a time when your income may be reduced or lost and paying other household bills becomes challenging. Protected events include:
Life Plus adds protection for financially-stressful life events such as accidental dismemberment, terminal illness, hospitalization, family medical leave, and the loss of life of a non-protected dependent.
Because each member has different needs, we offer three different options for protection with CFCU Safety Net:
| Personal Lending | APR* | Term^ | Calculator |
|---|---|---|---|
| Signature Loan | 8.49% | 60 months | Calculator |
| Share Secured Loan ~ | 6.00% | 60 months | Calculator |
| Credit Builder Loan | 24.74% | 60 months | Calculator |
