If you’re looking to improve or establish your credit score, a credit builder loan can be a great tool. These small installment loans allow you to make regular payments that are reported to the major credit bureaus, helping build a positive credit history. In Wisconsin, several reputable banks and credit unions offer credit builder loans with favorable terms and rates.
In this post, we’ll explore the top credit builder loans available in Wisconsin, providing details on loan terms, interest rates, eligibility, and other special features. Let’s dive in!
1. Bank Five Nine – Achieve Credit Builder Loan
Bank Five Nine offers an Achieve Credit Builder Loan designed for those who want to improve their credit score while saving money. The loan is fully secured, meaning the $1,000 loan amount is placed into a savings account that you can’t access until the loan is repaid.
- Loan Terms: $1,000 for a 24-month repayment period
- APR: ~1.95% APR (fixed)
- Eligibility: Open to individuals who open an Achieve Checking account (required)
- Special Features: No down payment or monthly fees, and the loan’s payments are reported to all three major credit bureaus, improving your credit score as you pay.
- How to Apply: Visit Bank Five Nine’s website or any branch to open an Achieve Checking account and apply.
Official Info: Bank Five Nine Achieve Credit Builder
2. North Shore Bank – Credit Builder Loan
North Shore Bank offers a straightforward credit builder loan, perfect for those looking to improve their credit score. This loan is also secured, meaning the loan funds are placed in a Certificate of Deposit (CD) account until repaid.
- Loan Terms: $1,000 to $4,000, with 12 to 24-month terms
- APR: ~7.00% APR
- Eligibility: Open to anyone (not limited to bank members), though you must have a checking or savings account with them.
- Special Features: Funds are placed in a CD, and payments are reported to the credit bureaus to help establish or rebuild your credit. Upon successful repayment, you unlock the savings.
- How to Apply: Apply online or visit a branch to get started.
Official Info: North Shore Bank Credit Builder Loan
3. CoVantage Credit Union – Credit Builder Loan
CoVantage Credit Union offers a Credit Builder Loan that’s available to members in Wisconsin, Michigan, and Illinois. This loan is secured by the funds you borrow, which are deposited into a locked savings account until the loan is repaid.
- Loan Terms: Customizable terms from 12 to 24 months
- APR: 2.50% to 3.00% APR (based on savings rate)
- Eligibility: Must be a CoVantage member. Membership is open to people in their service area.
- Special Features: Payments are reported to credit bureaus, helping improve your score. The loan is secured by funds placed into a savings account, which you can access after full repayment.
- How to Apply: You can apply online or at a CoVantage branch. Membership is easy to join if you live or work in their service area.
Official Info: CoVantage Credit Union Credit Builder Loan
4. Marine Credit Union – Get Credit Credit Builder Program
Marine Credit Union’s Get Credit Credit Builder Program is an excellent option for those with low or no credit. This program is designed to help individuals build or rebuild their credit while setting up an emergency savings fund.
- Loan Terms: 12-month loan with monthly payments starting at $45
- APR: Based on your individual credit situation (typically low to moderate rates)
- Eligibility: Must be a Marine Credit Union member; membership is available to residents in several Wisconsin counties.
- Special Features: The loan funds are placed into a locked savings account, and the payments are reported to the credit bureaus. After 12 months of successful payments, the savings are unlocked and paid to you. You also improve your credit score in the process.
- How to Apply: Apply online or in-person at a Marine CU branch. They’ll walk you through the application process and help you set up payments.
Official Info: Marine Credit Union Get Credit Program
5. Educators Credit Union – Credit Rebuilder Loan
Educators Credit Union offers a Credit Rebuilder Loan to help members with poor or damaged credit. Unlike traditional credit builder loans, this product consolidates outstanding debts and gives you the opportunity to rebuild your credit by making on-time payments.
- Loan Terms: Up to $2,000, with terms ranging from 12 to 36 months
- APR: 19.90% APR
- Eligibility: Must be a member of Educators CU, with membership available to residents or employees in southeastern Wisconsin.
- Special Features: This loan pays off outstanding debts directly, and payments are reported to all major credit bureaus. It’s an unsecured loan, but the primary purpose is to clear old debt and help establish positive credit.
- How to Apply: You can apply online or at an Educators Credit Union branch.
Official Info: Educators Credit Union Credit Rebuilder Loan
Conclusion
A credit builder loan is a smart and practical way to improve or establish your credit score while building savings. Wisconsin residents have access to some great options through local banks and credit unions, including Bank Five Nine, North Shore Bank, CoVantage Credit Union, Marine Credit Union, and Educators Credit Union.