Credit Builder is a credit building product designed with affordability in mind.
This product has a 36-month term with payments of only $10/month.
On-time payments reported to the credit bureaus help your credit, which can qualify you for lower interest rates and better offers on credit cards, mortgages, loans, and more. Your payments are made automatically through a pre-authorized debit agreement, so you never have to worry about missing a payment.
All payments (including missed payments) are reported to both Equifax and TransUnion. You can expect to see Credit Builder reported as an instalment loan on your credit report within 90 days of making your first payment. We report once a month, from the middle to the end of the month, for the previous month's activity. Credit Builder will display on your credit report as Borrowell.
Below is a breakdown of what your monthly payments go toward:
Month 1 - 24: You pay $10/month ($5 goes to your savings, $5 goes to the program fee)
Month 25 - 36: You pay $10/month (but the full $10 goes to your savings)
Credit Builder is a $240 secured instalment loan. Unlike a traditional cash loan, you don’t receive any money upon approval. As you make payments, they are reported to the credit bureaus.
At the end of the 36 months, your total savings of $240 will be directly deposited into your bank account.
There is no hard credit check to apply. If you’re interested in Credit Builder, you can sign up here.