I have received numerous requests about information about the Credit Builder accounts offered by M I/BMO bank, Unfortunately M I is only out of 6 states (Arizona,Florida,Milwaukee,Wisconsin, Indiana and Florida) fortunately several of you have sent me information about the credit builder that is offered by other banks, Credit Unions and websites that provide additional information about the Credit Builder.
You borrow an amount between $1000 and $5000 that is saved in your name in and interest earning Certificate of Deposit.
You select the desired length of time to repay the loan with regular monthly payments (minimum 24 months maximum 60 months)
You EARN interest through the CD during the course of the loan and receive the principle and interest when the loan is repaid.
On time consecutive payments are reported to the credit Bureau, helping you establish a positive repayment history.
* be advised the above info is for M I/BMO only, it may be different for CU.
For M I/BMO the payment is .44% of the chosen amount (I went with 2k, my payment is $88 a month)
I was approved with a EX score of 597. It is listed as an “installment loan”