Credit Builder Loans

Building or repairing credit can seem like an endless circle. How can you establish credit and build your credit history is you can't get approved for anything? Our credit builder loans can help you break that cycle.

Like the name implies, a credit builder loan is one that exists to help you build your credit. While they do not require good credit for approval, you will need adequate income to make regular, on-time payments.

The money that you borrow is deposited into your ATFCU savings account but you will not have access to it until the loan is paid in full. Don't worry about accidentally spending it - we have controls in place. You get the loan, make payments over the agreed-upon term, and when the loan is paid off you get the money plus the interest it earned during the loan period.

We report monthly to the three major credit bureaus. If you make on-time payments for the life of the loan, a positive report will be sent each month of the loan term. Assuming that you're keeping other areas of your financial life under control, positive reports will increase your credit score. Of course, the opposite is true as well - if you fail to make timely payments, your credit score will decline even more. Since building credit is the goal, you will need to be especially diligent about making every payment on-time.

There are two credit builder loan options:

  • $500 for 12 months @ 4% APR* = $43 monthly payment
  • $1,000 for 18 months @ 4% APR = $59 monthly payment

APR = Annual Percentage Rate. This rate effective June 1, 2018. Rates are subject to change.

Apply in person, by phone, or online.  If you use the online application, please select the Share/CD Secured Loan option.

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