Grace Enfield, Content Writer
@grace_enfield
The best credit unions for credit-builder loans are Alltru Credit Union and Digital Federal Credit Union because of their low APRs and affordable monthly payments. Alltru offers 50% of all the interest paid on the loan back, while an account through Digital Federal earns dividends. You must be a member to get a credit-builder loan from either of these credit unions, though.
Best Credit Unions for Credit-Builder Loans
Alltru offers 12-month credit-builder loans of $300 to $1,000 with an APR of 12%. If you make all of your payments on time, the company will refund you half of the interest you paid over the life of the loan.
To get a credit builder loan through Alltru, you must become a member. Memberships are open to people who live in St. Louis, St. Louis County or St. Charles County.
Digital Federal offers 12 to 24-month credit-builder loans of $500 to $3,000 with a fixed APR of 5%. With a credit-builder loan from Digital Federal, the money in your savings account will earn dividends.
Anyone can apply online to become a member of the credit union.
Randolph-Brooks Federal Credit Union (RBFCU)
RBFCU offers credit-builder loans of $300 to $2,500 with loan terms from 6 to 36 months. There are no fees associated with an RBFCU credit-builder loan, but you will have to pay interest on the loan. You’ll receive a portion of that interest back at the end of the loan.
You can apply online to become a member of RBFCU, but you must live in Texas to become a member.
Final Thoughts
If you’re having a hard time getting approved for a credit-builder loan from a credit union, you can also try to get credit-builder loans from banks or online lenders. Plus, good alternatives to credit-builder loans include no credit check personal loans and credit cards for people with no credit. These borrowing options do not require a credit history, and they can help you build credit.
People also ask
Where can I get a credit builder loan?
You can get a credit builder loan from local banks, credit unions and online lenders. Credit builder loans are designed to help people who are looking to establish or improve their credit, but you are unlikely to find major banks offering them.
Where to Get a Credit Builder Loan
| Lender | APRs | Loan Amounts | Payoff Periods |
| ... | 8% - 8.50% | $500 - $1,500 | 12, 18, or 24 months |
Will a credit builder loan hurt my credit?
No, in fact if one has no (or even older bad) credit, this is better than being an authorized user (AU) on an account with someone else! The only thing this (being an AU) does, while good to have, is to build credit for someone else. Many banks & credit cards don't count AU accounts, whereas a credit builder loan does.
Doesn't have to be a large amount (maybe $500-1,000 to start), yet try to...
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