Build or rebuild your credit as you build your savings.

Routing Number: 282075028

Credit-Builder Loan

Whether you’re just starting to establish credit or need a fresh start on your existing history, our Credit Builder Loan may be the answer.

Build or Rebuild Credit

As you repay on time, we report this information to the credit bureaus.

No Upfront Costs

No upfront costs or fees to get started.2

Affordable Payments 

Fixed repayment terms for predicable, affordable payments.4 

Flexible Terms. Fixed Rate.

Loan terms up to 24 months with a fixed rate of 11.50% APR4 regardless of credit history. 

A Higher FICO® Score Saves You Money

That’s right. A high credit score gives lenders confidence in your ability to repay your loan. The higher it is, the lower the interest rate with most favorable terms, which will save you a lot of money.


For example, let’s say you want to get an unsecured personal loan for $1,000. According to this calculator, a score of 670 in the current interest rate environment (as of September 1, 2020), you could qualify for a 24-month loan at 21.8%. Over the lifetime of the loan, you’d pay $248 in interest. However, if you raised your score by just 50 points to 720, that would boost you to the next credit scoring band. Then, you could qualify for 13.9% interest rate, which means you’d pay $152 in interest over the life of the loan. That’s a savings of $96.

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 does a credit-builder loan work? 

Different than a traditional loan, the loan funds will not be immediately released to you. Instead, funds will be deposited into a shared savings account. Then as you repay the loan, your timely monthly payments are reported to the credit bureau helping you to establish a positive credit history. Once the loan is paid in full, the funds that were deposited into the share savings account are yours to spend or save.


How much will a credit-builder loan improve my credit 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.5


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.5


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 please be aware that a solid, on-time payment history is the most important factor in determining your credit score. By paying off your loan early, you may not be able to establish the 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 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. Below are a couple of examples to give you an idea.

Credit Builder Loan Examples 

Loan Amount Term Interest Monthly Payment Total Interest
$1,000 12 months 11.50% APR4 $89 $64
$5,000 24 months 11.50% APR4 $235 $621


Call us at (800) 456-3000 or visit your local branch to apply.


1. Credit Builder Loan account funds are held in a share savings account until paid in full. Subject to approval. Improved credit score is not guaranteed. Improvement in 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. 

2. Membership with Arkansas Federal is required. In order to establish membership, a $5 opening deposit into a Share Savings account is required. 

3. 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.

4. 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 = 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. 

5. There is no guarantee on how much a credit-builder loan will improve your credit score because there are many different variables that can affect your credit score. Your credit report will reflect your successful completion of on-time, scheduled payments, which shows your commitment to being a responsible consumer. However, making a late payment will also be reported to credit reporting bureaus that will negatively impact your score.