Altura Credit Union launches new loan to help people rebuild credit score
RIVERSIDE, CA (November 7, 2013) — Riverside-based Altura Credit Union has rolled out a new loan, the “Credit Builder Loan,” created specifically to assist people who need to rebuild their credit score. With the tough economic conditions and job losses brought about by the “Great Recession” of recent years, a disproportionate number of people in the Inland Empire were unable to pay their bills and, as a result, their credit scores dropped dramatically.
“A low credit score can make it very difficult for people to manage their financial lives,” said Jennifer Binkley, Altura’s chief operating officer. “It makes it harder for people to borrow money, and if they can get a loan, they pay higher interest rates. It becomes so much tougher to buy a car or a home. Plus, a low credit score can even hurt your chances of renting a new place or getting a new job,” she added.
Credit Scores are calculated using pieces of financial data from an individuals financial history. The five major categories are: payment history, amounts owned, length of credit history, new credit and types of credit. Payment history accounts for about 35% of the score, so any late payments will lower the credit score. Credit scores top out at 850, but anything below 659 is considered only “Fair,” and scores below 580 are labeled as “Very Poor.”
With the Credit Builder Loan, an individual can borrow up to $3,000 at a competitive rate, even those with low scores. The borrowed funds are placed into a CD, called a Share Certificate at Altura. This loan contributes to a high loan score in several ways, including an on-time payment history. Once the loan is paid off, the borrower has access to the cash.
“Altura created this loan as a way to offer people a lifeline and an opportunity to rebuild their score and move forward,” said Binkley. “We look at a low credit score and see an opportunity to help.”
The Credit Builder Loan is the latest offering in Altura’s line of credit recovery products. As a credit union, Altura is committed to its Members as well as the community at large. Altura does what credit unions were founded to do – offer help and financial alternatives. The line of credit recovery products are designed to do just that – to help people in the Inland Empire regain their financial footing.
For more information on the Credit Builder Loan and other credit recovery products, like Reliance Checking, visit Altura’s website: www.AlturaCU.com. Anyone who lives, works, worships or attends school in Riverside and San Diego counties and selected cities in Orange and San Bernardino counties can become a member of Altura.
Altura is very proud of its 56 years of service to Members in the Inland Empire. Today Altura is open to anyone who lives, works, attends school or worships in Riverside and San Diego counties, as well as selected cities in Orange and San Bernardino counties. Altura Credit Union, www.alturacu.com, has been recognized with the California Award for Performance Excellence (CAPE), the state’s equivalent of the Malcolm Baldrige National Quality Award. Today, Altura Credit Union 85,500 members and has $689.4 million in total assets. For more information on Altura, visit our website, www.alturacu.com, or call 1-888-883-7228.