Credit Builder Loan

Are you troubled by a bad credit score? Whether you’re just starting out and need to build a solid credit history, or you’re reshaping poor credit history and want to build good credit, this loan is right for you. A credit builder loan helps you say goodbye to poor credit.

Illustration of a meter showing credit score, indicating a way to fix bad credit

What are bad credit loans or a credit builder loan?

Bad credit loans, aka credit builder loans, help people with a bad credit score build up their credit score. This loan program kicks your credit building into high gear. It’s a way to create a good credit history and show the credit bureaus your creditworthiness. This loan explicitly shows that you’re responsible for making timely payments and exhibiting a continual pattern of good payment history. With this loan, your personal credit score builds quickly and efficiently while also adding funds to your savings account.

Money FCU designed the credit builder loan as a bad credit loan for those who need to establish credit or rebuild credit. It’s a secured personal loan that helps to build your credit score. With credit building loans, the lender puts the loan funds into your savings account and puts them on hold. Yes, it’s unconventional that the borrower does not receive any actual money to use. The loan amount is held in your savings account while you pay it off. The credit builder loan is a secured loan that uses the loan funds held within the bank account as collateral. Further, as you repay the loan, the corresponding funds become available in your account. It’s essentially a forced savings account while building good credit history.

credit builder loan - build credit

Building credit without a credit card.

Are you looking for how to build credit without a credit card? Credit builder loans are your ticket to the freedom of repaired credit. The money for the loan stays in your savings account. So, you build up your savings account while you pay off the loan amount. You are simultaneously increasing your credit and the cash in your savings account. Using a credit card is a bad idea for building credit because you also incur debt. A credit building loan is an installment loan that forces you to add to your savings account as you pay back the loan. By doing it this way, you don’t incur additional debt but do show a balance of savings and good credit history.

Another reason to not attempt to build credit on a credit card is the high interest rate of credit cards. The average credit card interest rate 20.93% as of August 2023 according to per In comparison, the fixed interest rate for Money FCU’s credit builder loan is only 5.50%*. That’s a vast difference, which also equals huge savings.

Finally, the last reason not to add debt to a credit card in an attempt to build credit is that there’s no set end date to the length of the loan term on a credit card. This means you have no scheduled end date on the loan term. Therefore, there is no guaranteed date for repayment of the loan debt. It is not advisable when you’re trying to build credit to have an open-ended repayment period. A credit builder loan has a set monthly payment so you can budget accordingly. You make monthly payments knowing exactly when your personal loan term ends, not to mention when you’ll be free of the debt.

*Rate shown includes 0.25% automatic payment discount.

credit builder loan - lender

What lenders will work with bad credit?

Credit unions often try to help people who have a low credit score or bad credit. Credit unions are a community financial establishment, which means that our members are the shareholders. Therefore, it may be easier for us to approve a member with poor credit than it would be for a bank. Money FCU can do this because credit unions do not need to worry about trustees or shareholders. We concentrate on giving to the community and helping the neighborhood. If you would like to learn more about the differences between a bank and a credit union, read our blogs, Advantages of Working with a Local Syracuse Credit Union Vs. a Bank and The History of Credit Unions: Why Are We Different?

Making your credit builder loan payment on time is crucial to improving your credit score. There are three major credit bureaus; Equifax, Experian, and TransUnion. All three credit bureaus report payment history on your credit report. Financial institutions will look at credit reports for consistent, timely payments when making a decision about granting you a loan. Sticking to your monthly payment shows your ability to handle debt and improves your creditworthiness. When you consider this, it makes it easy to understand why it’s imperative to pay on time. Plus, FICO generates your credit score using the reports from these top three credit bureaus.

What if I need a cash loan, not a way to build my credit?

I need money! Getting a personal loan with bad credit is different than building your credit with a credit builder loan. Money FCU has many cash loans to choose from. As a credit union, we try to be a fair lender and serve as many community members as possible. We often try to help people with poor credit get loans when a traditional lender, online lender, and alternative lenders cannot. Even if we can’t lend to you right now, we try to help you make a plan for the future – whether that’s coming back to refinance a loan you get elsewhere, or looking at how to clean up your credit. Money FCU has many different loan options and loan types to help you get what you need. Take a look at what other loans Money FCU has to offer. Speak directly with a loan officer to explore all the loan options. One of Money FCU’s loans may be able to provide you the loan program and assistance you need. We also offer free financial coaching to help you make a solid plan to take back control of your financial life. Schedule a free appointment today with one of our coaches.

How long will it take to improve my credit score?

Credit rebuilds over time. You may start to see a change in three months. In general, you should plan on six months before you see any significant changes. Also, rebuilding credit takes longer than building new credit. We offer tips on rebuilding credit in our blog, Quick Tips for Repairing Your Credit. You can also make an appointment with one of our financial coaches. Our coaches are real people who have experienced the same things you have. Life happens, and we understand that. Whether you have poor credit you want to clean up or just need help making a budget, our coaches can help.

The Credit Union is where I got my start and has always taken good care of me despite moving 10 different times.

Bruce – Tallahassee, FL
credit union testimonial Kelli

You guys are always so friendly when I call, I love calling all of you because you’re always so upbeat and nice!

Kelli – DeWitt, NY

I started banking with you in 2000, almost 19 years ago. Best bank ever, I moved to CA and you made banking easy when doing electronic banking wasn’t really popular yet.

Jesse – Syracuse, NY

Everything, anything you guys do with me is done 200%. I KNOW that you’ve got my back.  Thank you for this, and for everything you help me with. I truly appreciate it.

Marian – Mahopac, NY

I commend your staff; they are always very pleasant and willing to assist my needs.  Customer Service is very important to me and the credit union definitely shines in this area.

Kathy – Clay, NY

This is by far the best credit union, you guys are so good, you’re always on top of everything and you make me feel like my account is safe.

Regina – Phoenix, NY

I do not say it often enough, but you have great staff!  Nothing is ever a problem, they are terrific!  Amy just helped me out big time and Debbie is always my #1 at the credit union.

Jeff – Wake Forest, NC

I just wanted you to know that it is so nice to get a real person when I call in instead of an automated machine.  I really appreciate it.

Anne – Pittsboro, NC

I just LOVE all of you there. People ask me why I use a credit union in Syracuse and I tell them you can’t beat the customer service!

Denise – Monroe, NY

Thank you for watching for fraudulent activity so diligently.  Not only do you notify me when there is suspicious activity, but you are quick to help recover the money.

Sandy – Liverpool, NY

I’ve been in Charlotte for 7 seven years and I will not change banks because of this type of customer service.

Elliot – Charlotte, NC
credit union testimonial Catherine

Thank you MFCU for all the work you do and for really treating your customers like family.

Catherine – Baltimore, MD
credit union testimonial Michelle

I have to say it again – our credit union is absolutely the best! Hands down, no one else even comes close to the exceptional customer service and knowledge that you receive at Money FCU.

Michelle – Syracuse, NY
credit union testimonial Cindy

I told the car dealer I am sure that I want use Money for financing. The difference is only $7.00 per month. You have the very best customer service of any financial institution that I have worked with. Your customer service is worth every penny of the $7 per month and then some!

Cindy – Tully, NY
credit union testimonial Diane

Each representative takes a special interest in any request made, with coordinating efforts by everyone. At a time when I was in transition, MFCU gave attention to what I needed to continue with them, now over 40 years.

Diane – Wilton, CT
credit union testimonial Michael

I have been a member since 1987 and would NEVER, NEVER, EVER leave Money FCU under ANY circumstances!!

Michael – Clifton Park, NY
credit union testimonial Lisa

I wanted to let you know how much I love having Money instead of Chase! You guys have all been amazing since I have opened my account and I am so happy that I switched!!

Lisa – Syracuse, NY
credit union testimonial Henry

I just love Debbie. She’s my hero!

Henry – Gastonia, NC
credit union testomonial Tony

As we are wrapping details around our third vehicle loan inside of a year or so, I just want to say thank you again. Your customer service is off the charts, and you are a pleasure to deal with.

Anthony – Phoenix, NY
credit union testimonial Pat

Thank you to all of you! You girls are so wonderful! I love my credit union.

Pat – Syracuse, NY
credit union testimonial Lisa too

I thought I would take this opportunity to share with you what phenomenal employees you have. We couldn’t be happier to be blessed enough to have found MONEY FCU, and all that this bank encompasses.

Lisa – Baldwinsville, NY
credit union testimonial Angela

I moved everything out of M & T Bank to you because of the service I receive. I just love you guys!

Angela – Manlius, NY
credit union testimonial Robin

MONEY Federal Credit Union is people – a great group of people – who leave no doubt that while they are helping me, I am the most important thing going on that day.

Robin – Chappaqua, NY
credit union testimonial Jason

I am not sure who is working their magic, but without it my wife and I wouldn’t be able to purchase this house we fell in love with in a neighborhood we fell in love with. I truly appreciate everything Money Federal Credit Union does for my family!

Jason – Baldwinsville, NY


Kerry – Ossining, NY
credit union testimonial Erik

I have been a member since around 1992 or so and, even though I no longer work at Mutual of New York I have had nothing but excellent service from EVERYONE and I will never stray.

Erik – East Syracuse, NY

When you walk in the door you are always welcomed with a smile and happy greetings. Nothing is ever hard to do. When I need a loan it’s done and ready for me and I don’t even have to do anything! Just come in and sign!

Deb – Liverpool, NY
credit union testimonial Vera

You guys are the greatest. So professional and up to date with technology!

Vera – Warners, NY
credit union testimonial Danielle

I have been banking with MFCU since I was 17 years old. I left NY and banked with other companies but I came back to MFCU. I am so happy that I did!! Your staff has always been so helpful. I just figured you would want to know that your staff is great and they deserve an extra day off :)

Danielle – East Syracuse, NY
credit union testimonial Eileen

You guys haven’t changed a bit since I opened my account in 1987! You are all still so nice to deal with and I’m glad the changing times hasn’t hardened you into being unappreciative of your members. I now live in NJ and you are the best Credit Union I have ever had the pleasure of doing business with!

Eileen – North Arlington, NJ

I remember when I joined the CU in 1980 and you were located in a closet upstairs, and you would write the number of members and the percentage rate on a chalk board on the wall.

Joanne – Syracuse, NY

I just wanted to let you know that your staff has been so helpful since the move out of the building. The staff is always quick and kind. You said that a Credit Union is much like a Bank…I would say that the Credit Union is much better than a bank. I appreciate you guys!!

Michele – Baldwinsville, NY
credit union testimonial Lisa 3

I just wanted to let you know how awesome you are! I tell anyone who’ll listen about the GREAT customer service I get from the MONEY FCU. With commercial banks becoming less and less friendly and helpful and more and more costly, you guys are the best thing around!

Lisa – East Syracuse, NY
credit union testimonials John

I just went through one of the most painless processes getting a home improvement loan. I couldn’t believe how quick and smoothly everything went. I was quite impressed at the level of service. A special thank you also goes out to Debbie for her efficiency and for being so easy to work with!

John – Camillus, NY

I love you guys, one call and it’s done. Love, love, love you all.

Kathy – Fair Lawn, NJ

I just went through the process of taking out a car loan. If it weren’t for Melissa, I wouldn’t have been able to get things done. I wasn’t sure about what to do for so many things, but Melissa did! She was always there for me, quick, soooooo much help. Lucky for me I was smart enough to join your credit union years ago.

Katie – Syracuse, NY
credit union testimonials Meg

I am so grateful to have such kind and helpful people to work with on my banking needs.

Meg – Webster, NY
credit union testimonial Tom

When our office moved I decided to keep my account with you because I don’t mind the 10 minute drive downtown to deal with you guys because you’re always so helpful and friendly.

Tom – Syracuse, NY

I’m ready to begin building good credit with a credit builder loan.

Great, let’s get you started! Apply for a Money FCU Credit Builder Loan. Want to learn more before applying? Call (315) 671-4000 or chat with our friendly agents. We are ready to answer any of your banking questions.