Building Credit Made Simple: Western State Bank's Low Interest Credit Builder Loan
Are you looking to improve your credit score or perhaps start building credit for the first time? At Western State Bank, we understand the importance of having a solid credit history. That's why we've crafted our Credit Builder Loan, a financial tool designed to make building credit accessible and straightforward.
Who Can Benefit From Our Credit Builder Loan?
Our Credit Builder Loan is ideal for individuals in various situations:
- Credit Rebuilders: If your credit score has taken a hit in the past, our loan can help you rebuild it. Timely payments and responsible credit management can significantly improve your creditworthiness over time.
- Credit Starters: For those who are new to credit, taking out a Credit Builder Loan is a great way to establish a positive credit history. It lays the foundation for future financial opportunities.
- Parents and Teens: We've noticed a growing trend of parents helping their teenagers kick start their credit journey. Our loan is perfect for this purpose, allowing teens to learn about responsible borrowing early on. Please note this loan requires a qualified co-borrower. Teens must be at least 16 years of age in order to qualify, as credit bureaus do not track credit for youth under age 16.
The Features Of Our Credit Builder Loan?
Here is what makes our Credit Builder Loan stand out:
- Savings Account: Loan funds are deposited directly into a savings account at Western State Bank. A hold is placed on the account so that funds stay in the account until the loan is paid off.
- Flexible Loan Amount: “Borrow” anywhere from $1,000 to $2,500.
Understanding P&I: Principal and Interest
"P&I" stands for Principal and Interest. Here's what these terms mean:
- Principal: This is the initial amount of money you borrow.
- Interest: It's the cost of borrowing that money, expressed as a percentage of the principal.
Together, principal and interest make up your monthly payment. As you make payments, a portion goes toward paying the interest, while the rest goes toward reducing the principal. Over time, this helps you pay off the loan while steadily improving your credit score.
How To Apply
To apply for a Credit Builder Loan: Stop in to your nearest Western State Bank location and fill out an application. Also bring a driver’s license or government issued photo ID and your last two months of pay stubs. For teen applicants, the co-borrower must provide this information as well. This loan is subject to approval.
At Western State Bank, we believe that everyone deserves a chance to build a strong financial future. Our Credit Builder Loan is designed to make that journey easier, whether you're starting from scratch or rebuilding your credit.
Contact your local Western State Bank location to inquire about Credit Builder Loan options today!
Member FDIC