Self-Help Shares

Loans to Build Savings and Good Credit

By Mary M.
  | Mar 09, 2016

Building good credit is a process that takes time and patience. To give people an extra boost, both Self Help Credit Union and our affiliate, Self-Help Federal Credit Union (SHFCU), offer loans specifically designed to help members build or establish a good credit history.

The Self Help Credit Union loan is called Credit Builder. In California, Chicago and Florida, Self-Help Federal CU calls it the “Fresh Start” loan.  Both of these loans work the same way:

  • Customers take out a loan they can afford.
  • The loan funds go into a limited-access savings account.
  • As customers pay off the loan, Self-Help reports the repayments to credit agencies.
  • When the loan is paid off, customers receive the full amount of the loan, plus dividends.

Recently, with funding from MetLife Foundation, Self-Help conducted a study to assess the effectiveness of the Fresh Start loan. We found that the Fresh Start loan has boosted credit score for 70% of borrowers. Find out more about the study here, as well as general information about the components of a credit score. 

Fresh Start cover

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