âMore than half, about 53%, of members are in credit unions that provide loans to credit builders who help people build credit,â says Jordan van Rijn, senior economist for the Credit Union National Association.
With this type of loan, the borrowed amount is held in a bank account while you make small incremental payments over the life of the loan. At USAlliance Financial, the lowest payment with a credit loan can be around $ 42 per month, compared to a minimum initial cost of $ 250 for a secured credit card. At the end of the loan, the funds are returned to you and can be applied to a secured credit card deposit to continue building credit.
Access to resources
Credit unions typically provide members with access to resources when it comes to managing a credit card or spending.
âFinancial education and financial literacy programs are extremely common in credit unions, that’s a big part of what they do,â says van Rijn. “We have data showing that 83% of credit union members are in credit unions that offer financial education classes.”
Resources are available in the form of online educational tools, seminars, or partnerships with organizations that offer credit counseling or financial planning services. Offers vary by credit union.