Build your credit history while building your savings
Whether you’re starting fresh or repairing your credit, your credit score plays a big role in life’s big moments – from buying a car to qualifying for a mortgage. One of the easiest ways to give your score a boost is with a Credit Builder loan.
What’s a Credit Builder loan?
A Credit Builder loan is designed to help you improve your credit and save money at the same time. Here’s how it works:
- We set the loan aside for you
When you’re approved, we deposit the loan amount (for example, $500 or $1,000) into a secure savings account in your name. You don’t access it yet – think of it as money waiting for you at the finish line. - You make small monthly payments
Each month, you make a payment toward the loan, just like a regular loan. The amounts are manageable to fit your budget. - We report your payments to the credit bureaus
Every on-time payment is reported to Equifax, Experian, and TransUnion – the three major credit bureaus – to help build your credit history and boost your score. - You unlock the funds at the end
Once you’ve made your final payment, the full loan amount (plus any interest earned in the savings account) is released to you. You’ve built your credit and created a savings cushion.
Why it works
- Build or rebuild credit. Your payment history is a big factor in your credit score.
- Create a savings habit. You’ll finish with both better credit and money in your pocket.
- Low risk. Because the funds are held until the loan is paid, there’s no temptation to spend it early.
Is it right for you?
A credit builder loan may be a good fit if you:
- Have little to no credit history
- Want to repair past credit challenges
- Need to improve your score before applying for a larger loan
Start building today
At Rize Credit Union, our Credit Builder loans are simple, affordable, and designed to help you succeed. Our team can guide you through the process and help you take the next step toward your financial goals.
Tip:
Pair your Credit Builder loan with a free monthly financial coaching sessions to learn strategies for budgeting, debt management, and responsible credit use.