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.