Credit Builder Loan Program
New to credit? Or looking to rebuild credit?
Our Credit Builder Loan Program is designed to help those with limited or poor credit history to build good credit. If approved for the loan, the amount you borrow is held in a bank account while you make payments, helping you build savings and credit at the same time.
Here’s how it works:
- Once approved for the loan ($500 minimum, $1,500 maximum), the borrower makes monthly principal and interest payments.
- All loan proceeds fund the deposit account.
- Funds in the deposit account will be released to you after making your final payment, growing your savings.
- This loan will be reported on consumer credit reports, helping you build credit, as long as all payments are made on time.
Interested in learning more?
Check out the Frequently Asked Questions below, stop in your favorite branch, or call 860-448-4174, and our team will be happy to talk you through the program and help you apply.
Frequently Asked Questions
I’ve never built any credit, or I have a really low credit score. Can I still qualify for this program?
Yes, the purpose of the Credit Builder Loan Program is to give people with no credit or poor credit the opportunity to build good credit. In order to qualify, you must have a stable source of income, which may come from your job, or from recurring monthly income such as Social Security, a pension, or long-term disability.
I’m not a customer at Chelsea Groton Bank. Can I still apply for this loan?
Absolutely! To apply, visit your local Chelsea Groton Bank branch and our team will help you through the process. If you’d prefer to schedule an appointment for a specific time, please call our Customer Care team at 860-448-4200 and they will be happy to assist you.
How do I apply for this loan?
To apply, visit your local Chelsea Groton Bank branch with a current, valid form of identification and your most recent paystub. If you are not a W-2 employee, please ask the branch about income verification requirements.
What size loan can I apply for?
Currently, all loans in this program are $500-$1,500. We know that you’ll likely need a loan larger than this eventually. However, making your payments on time for this size loan will be an important step in building your credit in order to get approved for a larger loan in the future.
What happens to my credit if I’m late on a payment for my Credit Builder Loan?
If you make your payment after the due date, you will assess a fee equal to 5% of the payment that is due. In addition to the late fee, if your loan payment is more than 30 days past due, it will be reported late to the credit bureau which may have a negative impact to your credit.
Am I able to pay back the loan early in order to access the funds in my account early, or will I be penalized?
Yes, you can pay off your loan balance whenever you’d like. There is no penalty to do so.
Am I able to have a co-signer on this loan?
Yes, a qualified co-signer would be permitted; however, you must qualify for the monthly payment based on your own income.