Build & Improve Your Credit Score
With some patience, discipline, and a few tips, you can improve your credit score and enjoy many financial milestones.
Read MoreCredit Builder Loan
Establish credit or get a fresh start.
Having limited credit, bad credit, or no credit at all, can impact your ability to secure the financing you need to buy a car, purchase a home and make other big financial decisions. Fortunately, our Credit Builder Loan can help you establish or build your credit. Unlike a traditional loan, the funds are not immediately released to you. Instead, funds are placed in an account for safekeeping. As you make on-time payments, we’ll report your success to the credit bureaus. Once the loan is paid off, the loan’s value is released to you – with interest and a better credit score!Credit Builder Loan account funds are held in a share savings account until paid in full. Subject to approval. If no credit history is available on member, in lieu of a credit report score, other loan criteria may be required such as proof of a steady income, work history, and/or residency to help with loan decision. Improved credit score is not guaranteed. Your credit score is dependent on your specific situation and financial behavior. Failure to make monthly minimum payments by the payment due date each month may result in delinquent payment reporting to credit bureaus which may negatively impact your credit score. This product will not remove negative credit history from your credit report.
No Upfront Costs
No upfront costs or fees to get started.Membership with Arkansas Federal is required. In order to establish membership, a $5 opening deposit into a Share Savings account is required to use any product or service of Arkansas Federal.
Convenient Terms
Convenient repayment terms ranging from 12 – 24 months.No upfront costs or fees to get started.Loan amounts vary from $750 – $10,000 and terms are up to 24 months. Regardless of loan term, amount or credit history, a fixed rate of 11.50% APR will be applied. APR is Annual Percentage Rate as of 8/1/2020. Other restrictions may apply. All loans, terms and conditions are subject to Arkansas Federal qualifications and approval. Rates are subject to change.
Fixed-Rate
Enjoy a fixed rate of 11.50% – regardless of your credit history.Loan amounts vary from $750 – $10,000 and terms are up to 24 months. Regardless of loan term, amount or credit history, a fixed rate of 11.50% APR will be applied. APR is Annual Percentage Rate as of 8/1/2020. Other restrictions may apply. All loans, terms and conditions are subject to Arkansas Federal qualifications and approval. Rates are subject to change.
| Loan Amount | Term | Interest Rate | Monthly Payment | Total Interest |
|---|---|---|---|---|
| $1,000 | 12 months | 11.50% APRLoan amounts vary from $750 – $10,000 and terms are up to 24 months. Regardless of loan term, amount or credit history, a fixed rate of 11.50% APR will be applied. APR is Annual Percentage Rate as of 8/1/2020. Other restrictions may apply. All loans, terms and conditions are subject to Arkansas Federal qualifications and approval. Rates are subject to change. | $89 | $64 |
| $5,000 | 24 months | 11.50% APRLoan amounts vary from $750 – $10,000 and terms are up to 24 months. Regardless of loan term, amount or credit history, a fixed rate of 11.50% APR will be applied. APR is Annual Percentage Rate as of 8/1/2020. Other restrictions may apply. All loans, terms and conditions are subject to Arkansas Federal qualifications and approval. Rates are subject to change. | $235 | $621 |
Frequently Asked Questions
Why is it so important to have good credit?
You need a good credit score for many things in life – to qualify for a credit card, car loan, or home loan – and your credit score could even be considered by potential employers and landlords. Plus, the higher your score, the lower your rate, and terms.
How much will a credit-builder loan improve my score?
If you’re just starting out and have no credit history, you’ll receive a FICO score after about six months. If you make your payments on time, your score is likely to start out quite high because you have no bad credit history. It’s not unusual for someone starting to establish credit to have a 700+ FICO score at the end of the loan term.Credit Builder Loan account funds are held in a share savings account until paid in full. Subject to approval. If no credit history is available on member, in lieu of a credit report score, other loan criteria may be required such as proof of a steady income, work history, and/or residency to help with loan decision. Improved credit score is not guaranteed. Your credit score is dependent on your specific situation and financial behavior. Failure to make monthly minimum payments by the payment due date each month may result in delinquent payment reporting to credit bureaus which may negatively impact your credit score. This product will not remove negative credit history from your credit report.
If you already have a credit score, and make all your payments on time, you should also expect to see an increase with this type of loan. Payment history makes up to 35% of a FICO credit score. So, making on-time monthly payments can truly have a positive impact.Credit Builder Loan account funds are held in a share savings account until paid in full. Subject to approval. If no credit history is available on member, in lieu of a credit report score, other loan criteria may be required such as proof of a steady income, work history, and/or residency to help with loan decision. Improved credit score is not guaranteed. Your credit score is dependent on your specific situation and financial behavior. Failure to make monthly minimum payments by the payment due date each month may result in delinquent payment reporting to credit bureaus which may negatively impact your credit score. This product will not remove negative credit history from your credit report.
How long will it take to improve or establish my credit score?
Good credit takes at least six months to build and one year to settle.
Can I close/pay off my loan early?
Yes, but we don’t recommend it. Please be aware that a solid, on-time payment history is the most important factor in determining your credit score and by paying off your loan early, you may not be able to establish a steady payment history with the credit bureaus. It won’t lower your score, but it also won’t raise it.
What will my payments be like?
You will make equal monthly installment payments for up to 24 months. The monthly payment will depend on the amount of the loan as well as the loan term. Whether you need to borrow a little or a lot, we can help. Options start at $750 and go as high as $10,000.
