Establish or Rebuild a Good Credit Score
At TCT, our purpose is to serve, guide and support our members on their financial journey. Our Credit Builder Loans are designed to help members who may not qualify for another type of loan due to insufficient credit, or a low credit score. A TCT Credit Builder Loan can be a great way to show lenders that you can pay down a small loan responsibly. The better credit score that results can open doors for larger opportunities.
How a Credit Builder Loan Works:
- Loan amounts of $500 — $1,000 will be deposited by TCT into a specially designated Savings Account and will be reserved in your name as collateral
- The loan is then repaid on a monthly, bi-weekly, or weekly basis over time, up to 24 months
- The funds become available as the loan balance is reduced
- No money down is required
- After about 6 months of on-time payments, you will get a FICO score if you did not have one previously. For best results, you must make on-time payments to any other outstanding debts that are reported to credit bureaus.
|Term||Minimum APR*||Maximum APR|
|Up to 2 Year (24 month)||6.00%||6.00%|
|Minimum Loan Amount: $500 | Maximum Loan Amount: $1,000|
*Annual Percentage Rate (APR) is for up to a 24-month term. A sample payment based on the disclosed rate of 6.00% APR for a 24-month term, the monthly principal and interest payment would be $44.33 per $1,000 financed.
Typically, a debt management plan is set up to pay off 100% of your unsecured debt within five years. Because many creditors agree to lower interest rates, more of your payment goes toward reducing the principal balances, and less is applied towards interest charges. Collection calls and letters will typically stop after 2-3 successful months on the program. This is different than debt settlement. TCT Members have free access to financial counseling from our partner, GreenPath Financial Wellness.
The federal government requires that each of the three national credit-reporting agencies—Experian, Equifax, and TransUnion—gives you a free credit report every year. You can request a free copy of your credit report by visiting AnnualCreditReport.com.
According to the Federal Trade Commission, the only authorized online source is at annualcreditreport.com. Consumers should be aware that there are many sites out there that claim to offer “free” credit reports but often charge you for another product if you accept the report.
To request your credit report by phone, call (877) 322–8228. To request your credit report by mail, write to Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281. Do not contact the individual credit-reporting agencies.
A Credit Builder Loan or Share-Secured Credit Card are two ways to start building your credit. How it Works: TCT will hold the amount of your credit limit in your account. Your new loan or credit card is reported to the credit bureau(s), along with your payment history and after six months this will help you establish a credit score.
No. The credit bureau does not allow us to give out copies of the report. You can request a free copy of your credit report by visiting AnnualCreditReport.com.