What is the Credit Builder Loan?
The DuTrac Credit Builder Loan is designed for members who may not have credit or may need to re-establish their credit. This loan allows members to move toward achieving financial independence with the help of an automatic savings plan built directly into the loan. DuTrac will help members obtain an affordable payment based on a reasonable term and low interest rate.
How Does the Credit Builder Loan work?
The DuTrac Credit Builder Loan is fully secured by placing the “loan” proceeds into the member’s savings account at DuTrac. The approval is based on the capability to repay the loan back. As with all loans, payments will be reported to the credit bureau. If there is no credit file (ex. just turned 18 years old, never had a loan before, no credit score) the Credit Builder Loan will help the member establish credit history and generate a credit score. If a member may have had some credit issues in the past (ex. collections, recent bankruptcy, poor knowledge or handling of credit) the Credit Builder Loan can help to re-establish a stronger credit history. The DuTrac Credit Builder Loan can be customized to fit nearly any need.
What to do After a Loan Denial?
You went through the process — you filled out all the paperwork and were ready to land that financing, whether it was an auto loan or personal loan. Then, after all of that, your loan request was denied. Loan denial happens, but now what? First, you should relax and take a deep breath. Loan denial alerts you to a problem with your credit or financial situation: The trick is to use this opportunity to get the problem(s) fixed. Here’s what you should do after loan denial so that next time it’s more likely you’ll be looking at loan approval.
The first step is to figure out why you were turned down. It’s a good idea to check your credit reports from the three major credit reporting agencies — Equifax, Experian and TransUnion — right away. You can see copies of your credit reports once every 12 months for free by visiting AnnualCreditReport.com. Keep in mind that checking your own credit does not harm your credit scores. Once you have your credit reports, you’ll want to look closely for any negative items such as late payments, collection accounts or bankruptcy filings.
There are five main factors that impact your scores:
• Payment history
• Credit utilization (how much debt you have in relation to your total credit limit)
• Average age of your credit accounts
• Variety of credit accounts you have
• Number of inquiries on your credit profile
You can use these factors to figure out why you might have been turned down and what you can do to improve your scores. For example, you may need to reduce your debt balances, improve your payment behavior or work on your balance of accounts.
Being turned down for a loan isn’t ideal, but it can be a good opportunity to take a hard look at your credit and financial standing in order to improve your situation.
How do I take advantage of the Credit Builder Loan?
Applying for the DuTrac Credit Builder Loan is easy. Simply click here to set up an appointment with a highly qualified DuTrac financial services consultant. Choose to have your credit report pulled in advance so we can review the report and prepare a plan for building or re-building your credit. We will contact you to verify your information and appointment date and you will be on your way to building credit.