Credit Builder Loans

 

Could your credit score use a boost?  

 Whether you're buying a car, a home, or applying for a new credit card, your credit history plays a key role in the process. A higher credit score makes it easier to qualify for loans, credit cards, and better interest rates, saving you money and opening more financial opportunities. 

Our Credit Builder Loan is designed to help improve your credit. Here’s how it works: 

  1. You take out a loan, but you don’t get the money right away.
  2. The money is put into a savings account (called a certificate of deposit or CD) while you make monthly payments on the loan.
  3. You make payments every month for a set time, usually one or two years.
  4. At the end of the loan, the money in the savings account is yours, plus any interest it earned.
  5. Making payments on time helps your credit score because it shows you can handle a loan responsibly. 

  A Credit Builder Loan is a smart strategy to strengthen your credit while growing your savings at the same time. 

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Credit Builder Loan

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Term Autopay APR* CD Amount Monthly Payment
12 months Autopay from a First Fed account 11.49% $1000 $88.61
12 months No autopay 11.99% $1000 $88.84
24 months Autopay from a First Fed account 11.49% $2500 $117.09
24 months No autopay 11.99% $2500 $117.67

Interest Rates Effective: 5/1/2024

*Annual Percentage Rate (APR) is based on loan amount and interest rate. Rates are subject to change. No down-payment required. Maximum 50% debt-to-income ratio. No current tax or public liens allowed. Loan subject to credit approval. Credit activity is reported monthly to allow for score improvement or development. Failure to make your monthly payments on the Credit Builder Loan will result in negative reporting to the credit bureaus and may negatively impact your credit score(s). Learn more about credit scores at MyFico.

 

Top Benefits of Boosting Your Credit Score with a Credit Builder Loan 

  • Save big with lower interest rates on major purchases like a car or home.
  • Enjoy better loan terms and increased access to credit cards.
  • Unlock more rental housing opportunities with a higher score.
  • Benefit from insurance discounts, such as lower car insurance premiums.
  • When your Credit Builder Loan CD is paid in full, you will have saved money that you can reinvest or use however you choose—whether it’s for travel, home repairs, or anything else. 

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Questions? Contact Us for follow up from our team. We're happy to help!

 

 

“Jennie at First Fed suggested the credit builder loan to raise my score so I could purchase a new car. In less than a year my credit score went up nearly 100 points.”

Melissa B., Bellingham

* Individuals who take out the Credit Builder loan may see different credit score results. This product is not guaranteed to establish or improve your credit score.

 

Check Your Credit Score

Monitor your credit through Online Banking and our Mobile Banking app. 

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