Credit Union of Southern California (CU SoCal) is now offering the Credit Builder Loan—a loan solution to help those with less-than-optimal credit history or no credit history.
“CU SoCal is committed to building better lives for our members and future members by offering products and solutions that are tailored to help improve their financial health,” said CU SoCal Senior Vice President of Lending Cory McDaniel. “The Credit Builder Loan is another opportunity for us to serve members who have less than optimal credit history or no credit history. We believe in second chances and also believe members’ credit journey has to start somewhere—the Credit Builder Loan is a great solution for both of these scenarios.”
Unlike a standard loan that one applies for and receives funds, the $1,000 Credit Builder Loan provides the funds when the member has successfully made all payments for 12 months. After that, the $1,000 is available for the member to spend or keep as a savings account.
As the person successfully makes payments, CU SoCal reports that payment history to the nation’s top credit bureaus, helping the member establish a credit history. For those with a low credit score, successfully paying off a Credit Builder Loan may help improve their credit score.