Loans to Build Your Credit
One of the biggest obstacles people face in achieving their financial goals is a low or no credit score. Whether you are trying to rent an apartment, obtain a car loan, apply for a mortgage, or sometimes just sign up for a cell phone, a poor credit score will prevent you from realizing your goal.
Brooklyn Coop offers three ways in which you can build up your credit history so your score increases. Note that we report our loans to all three credit bureaus each month.
Credit Builder Loans
Credit builder loans create a payment plan toward a set loan amount. Each payment is reported so that, month by month, you establish an on-time payment record on your credit history. Once you complete the plan, not only do you have a higher credit score, but you also have the loan amount available in your account as savings.
Secured loans also allow for the establishment of a positive credit history through regular payments. The difference is that you begin by depositing funds that are frozen into your savings account, and we give you a loan based on that same amount. Once all the payments are complete, your deposit is unfrozen. Because you are using your own funds for a secured loan versus the credit builder, the interest rate is lower.
Secured Credit Cards
Secured credit cards are available with a minimum of $500 deposited into your savings account. We freeze those funds and issue a card with a $500 limit. You may make purchases or take cash advances with the card, and each month your statement will indicate the minimum payment you must make.