Credit Builder Loan
Lebanon Federal Credit Union recognizes the importance of helping members build credit as new borrowers and also the need to help those members with bruised credit who are interested in working on improving their credit history and credit score. Working with members to increase their credit worthiness makes a material impact in their financial lives and can help borrowers gain access to more affordable financing terms. Good credit also gives members other benefits such as discounted rates for insurance, the ability to qualify for mortgage financing, being able to rent an apartment, etc…
The Credit Builder Loan is a hybrid between a Signature Loan and a Share Secured Loan. Loan amounts of $500 - $1,000 will be offered to members with no/limited credit or those with poor credit trying to re-establish credit.
50% of the loan proceeds will be pledged as collateral.
- $500 to $1,000 – half of the loan proceeds pledged as collateral
- No application fee
- Flat rate of 8.00% APR regardless of credit tier
- Requires automatic repayment (ACH, Payroll, Checking, Savings)
- Maximum Term of 60 Months