A client's VantageScore will be higher score than their FICO score – the top score is 1000 not 850. Read more>>
Credit Builder Loans
CDFIs and community lenders around the country are introducing credit builder loans aimed at strengthening their client’s credit histories and scores.
What is a credit builder loan?
Credit builder loans are generally small loans that serve as a:
• step loan to build a credit relationship with the community lender
• reportable line of credit to a credit bureau
• loan that replaces asset-stripping debt (i.e. payday loans) with asset building credit
Featured Innovation - Innovative Change$
Innovative Change$ Opportunity Loans help low and moderate income Oregonians underserved by traditional financial institutions develop money management skills, build credit, and have access to responsible small dollar credit. Innovative Change$ is an emerging community development financial institution (CDFI) founded by Innovative Housing. Learn more>>
Credit Builder Loans - Credit Unions
When North Carolina banned predatory payday loans, the State Employees Credit Union (SECU) stepped up. At just 12% interest and a savings requirement, SECU’s Payday Advance Loan builds assets not debt.
Credit Builder Loans - Housing
Justine Petersenin St. Louis, MO offers $150 Credit Builder Loan to help clients add an active line of good credit.
BSAFE, a project of the Montana Legal Services Assocation, partners with TriCo credit union to offer credit builder loans secured with IDA savings.
Innovative Change$ Opportunity Loans help low and moderate income Oregonians underserved by traditional financial institutions develop money management skills, build credit, and have access to responsible small dollar credit. Innovative Change$ is an emerging community development financial institution (CDFI) founded by Innovative Housing.