Credit Builder Loan

If you do not qualify for our Personal or Advantage loan, we may offer you a Credit Builder loan. This loan is designed to help you get your finances back on track.

You cannot apply directly for a Credit Builder loan. Instead, we will offer it to you as alternative, if you do not qualify for the loan you applied for, and we feel it could help you.

Credit Builder loan at a glance

• We may offer you up to £2,000
• Interest rate of 28.82% p.a. (32.9% APR), cheaper than many other lenders
• Maximum loan term is 2 years
• Save a minimum of £2/week or £10/month as you borrow, so you will have savings once your loan is cleared
• No Membership Account withdrawals will be permitted until the Credit Builder loan is below your savings balance

Benefits of a Credit Builder loan

• No application fees or hidden charges
• No penalties for early repayments, so repay early & you’ll save interest
• Affordable loan repayments through payroll deduction, or alternatively by direct debit
• Convenient weekly, 2-weekly, 4-weekly or monthly repayment, tailored to suit your budget
• Save as you borrow, so you’ll have a lump sum when you’ve repaid your loan
• Savings continue to attract dividend payments* whilst repaying your loan

*Dividends are not guaranteed. The rate payable is dependent on financial performance and voted on by members at the Annual General Meeting.

Things you should know

• You must save a minimum of £2/week or £10/month into your Membership Account in addition to your loan repayment, so you will have savings once your loan is cleared.
• No Membership Account withdrawals are permitted until the Credit Builder loan is below your savings balance, as the balance is now secured against your loan
• The Credit Builder loan helps you get your finances back on track, so Top Ups are not permitted
• The Credit Builder Loan is not available to members who are bankrupt or have an Individual Voluntary Arrangement (IVA) that shows on their credit report
• Other terms and conditions may apply