Credit Builder/Share Secured Loan

The Credit Builder Loan is designed for members who may not have credit or may need to re-establish their credit.

With an automatic savings plan built directly into the loan, the program provides an affordable payment plan based on a reasonable term and a 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. Loan approval is based on the capability to repay the loan back.

As with all loans, payments will be reported to the credit bureaus. If there is no credit file, such as for members who have never had a loan before, the Credit Builder Loan will help the member establish credit history and generate a credit score.

The program is also ideal for members who have had credit issues in the past, such as a defaulted loan, recent bankruptcy, or poor knowledge or handling of credit. The Credit Builder Loan can help to re-establish a stronger credit history.

A Share Secured Loan allows the member to borrow money using their Savings account balance as collateral. The shares being used for collateral can be in a main share savings or a sub share with the same tiered interest rate structure as the main share account.

A CD Secured Loan allows the member to borrow money using their Certificate of Deposit as collateral.

• The CD being used for collateral cannot be an IRA CD.
• The loan amount requested for the CD Secured loan cannot be more than the CD balance.
• The maximum term guideline for a CD Secured loan is 60 months.

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