Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

CU System
iNY Timesi praises CU credit builder loans notes aSmarterchoice
MADISON, Wis. (2/7/12)--A New York Times article this week cited credit union credit-builder loans as a way to help consumers establish credit or improve their scores.

"Credit builder loans are offered as a way for credit union members to do a couple of things: get something good on their credit reports and set aside some money for future use," credit scoring guru John Ulzheimer said in the article, which appeared in the New York Times "Bucks" blog.

The article explained that credit-builder loans typically work in one of two ways:  Under one arrangement, the borrower makes payments on the loan over a period of time, perhaps a year, and the credit union puts the money in an interest-bearing savings account. Once the loan is paid off, the borrower gets access to the money.

In another instance, the borrower may provide the money to the lender, who then puts the money in an interest-bearing savings account as collateral. Then, the lender provides a line of credit up to that amount, which the borrower pays off in monthly installments.

Under both arrangements, the lender reports the borrower's payments to credit reporting agencies.

Steven Rick, a senior economist at Credit Union National Association (CUNA), told New York Times reporter Tara Siegel Bernard that nearly 15% of the 7,400 credit unions in the U.S. offer a credit builder program.

"You can see if you're eligible to join a credit union through the aSmarterChoice.org website, though you'll have to call or go to credit union's individual sites to see if it offers these loans," Bernard wrote.
Other Resources

RSS print
News Now LiveWire
.@CFPB today finalized changes 2 remittance rule, proposed in April. See rule here: http://t.co/tPs6Mlimni
1 hours ago
State OKs Floridacentral #creditunion's bank branch purchase #NewsNow http://t.co/37uXorWsmV
4 hours ago
Today is deadline to order your T-shirt for #MiracleJeansDay @CU4Kids @CMNHospitals http://t.co/UXIqW3cFN6
4 hours ago
#Creditunion #100MM on display with @NWCUA's Minickiello, Wash. Rep. Sharon Tomiko Santos at @NCSLorg @CUNAadvocacy http://t.co/xVwnS39uEM
5 hours ago
Fraudsters hit @jpmorgan with smash and grab #phishing campaign http://t.co/VEkAvctYLJ
5 hours ago