Credit Builder and Savings Program
A good credit history is vital to your financial health. But how can you build one if you have experienced poor payment history or have no credit history at all? At Monson Savings, our Credit Builder and Savings Program may help you to improve your credit score.
Credit Builder is a loan program that may help you to establish a good payment history, an important step in building a higher credit score.
Here is how it works:
- You borrow from $500 to $5000, for terms of 12 to 36 months.
- The amount you borrow is deposited into a Monson Savings Bank savings account that you cannot access until the loan is repaid.
- You make regular monthly principal and interest payments on the loan.
- As you repay on time (on or before the due date for at least the scheduled payment amount), you establish a positive payment history that we report to the credit bureaus*
- When you finish repaying the loan, you will have the full balance in the Monson Savings Bank saving account, including interest! You can keep this as a cushion for emergencies or use it for a down payment on a car, for education, for a home purchase down payment or however you please.
- PLUS! After completion of all your payments satisfactorily, the bank will deposit $15 for loan amount of $500-$2000 or $25 for loan amounts of $2001-$5000 into your account to congratulate you on your success.
By the end of the Credit Builder and Savings Program you should see an improved credit score (based on your payment history*) and you'll have a jump start on saving.
The habit of putting something aside from each paycheck can also help you to "Pay Yourself First" - a great practice for building a brighter future!.
*Results are not guaranteed. Improvement in your credit score is dependent on your specific situation and financial behavior. Failure to make monthly minimum payments by the payment due date each month will result in negative reporting to your credit report which will not improve your credit history. This product will not repair your credit, and negative credit history will not be removed from your credit report as a result of this program. Example loan payment schedule: A $1000 Credit Builder Loan with an APR of 5.75% for 12 months has an approximate monthly payment of $85.95. The interest rate is fixed for the full term of the loan and is established on the application date based on the prime rate plus .50bp.