Credit Builder Loans
Build Credit. Build Confidence. Build Your Colorado Future.
Life doesn’t always move in a straight line—and your credit journey doesn’t have to either. Whether you're just starting out or rebuilding after unexpected challenges, a Credit Builder Loan from Colorado Credit Union gives you a simple, supportive way to move forward.
Proudly serving members across Littleton, Denver, Brighton, and the Colorado Front Range, we designed this loan to help you build positive credit history, grow savings over time, and strengthen your financial foundation, while empowering our Colorado community—one member at a time.
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What Is a Credit Builder Loan?
A Credit Builder Loan is a low-risk, beginner-friendly loan created for one purpose: to help you establish or rebuild positive credit—without needing savings upfront.
It’s ideal for anyone who wants to:
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Build or reestablish credit
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Create consistent payment history
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Start growing savings automatically
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Take a structured, supportive step toward long-term financial stability
“Everyone is always so nice and helpful. Great people and a great credit union!! Great loan options too for rebuilding or building credit.” — Matt M., CCU Member
How It Works — In Three Simple Steps
1. We deposit the loan amount into your savings account.
Once approved, Colorado Credit Union advances the full $500–$2,000 loan amount into your Share Savings account and places a hold on it. This keeps your money secure while you make monthly payments.
You don’t need existing savings—we advance the funds for you.
2. Your monthly payments help build credit.
Each payment is reported to the credit bureaus, helping you build (or rebuild) a stronger credit profile as you make on-time payments.
3. Your available savings grow as you repay the loan.
As you pay down the loan principal, that amount is gradually released and becomes available in your savings account.
See It in Action
Here’s a simple example of how your payments translate into progress:
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Loan amount: $500
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Monthly payment: $20
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Interest portion: $2
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Principal released: $18
After your payment:
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Loan balance becomes $482
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$18 becomes available in your savings account
This structure helps you build credit and build accessible savings at the same time.
Loan Features
Here’s what you can expect with a Credit Builder Loan:
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Loan amounts: $500–$2,000
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Terms: 12–24 months
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Rate: Share Savings rate + 3.00% margin
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Funds released monthly as principal is repaid
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No savings required to get started
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Designed for credit building + savings growth
Example:
For a $1,000 Credit Builder Loan with a 12-month term at an estimated 3.10% APR*, your estimated monthly payment would be approximately $84.84. The APR is fixed. No balloon payment.
Who This Loan Is Perfect For
This loan is a great fit if you’re:
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New to credit and want to build a strong start
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Rebuilding after financial setbacks
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Looking for a simple, structured way to improve your credit
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Wanting a low-risk way to create financial momentum
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Hoping to qualify for future loans like auto, home, or personal loans
Credit Builder Loan vs. Personal Loan
The right option depends on your goals.
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Credit Builder Loan |
Personal Loan |
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Purpose |
Build or rebuild credit |
Borrow cash for expenses |
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Funds |
Held in savings and released as you repay |
Full amount received upfront |
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Savings Growth |
Yes, grows monthly |
Not included |
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Rates |
Lower, predictable |
Higher |
|
Ideal For |
Establishing/ rebuilding credit + building savings |
Larger purchases, emergency needs |
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Credit Requirements |
Beginner-friendly |
Requires stronger credit |
Comparing Other Secured Loan Options
Which option fits your financial needs? If you're comparing different secured loan options, here’s how they work:
Credit Builder Loan
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Colorado Credit Union advances the funds into your savings
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Funds released gradually as you repay
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Ideal for credit building
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No existing savings required
Share Secured Loan
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You receive funds immediately
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Your own savings act as collateral
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Savings remain locked until loan is paid off
CD Secured Loan
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Full amount upfront
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Secured by your Certificate of Deposit
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Term matches your CD’s remaining term
Why Colorado Credit Union?
Financial strength builds stronger communities and at Colorado Credit Union, you are at the heart of everything we do.
Our Credit Builder Loan reflects our commitment to:
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Helping you take positive steps forward
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Offering judgment-free support
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Keeping things simple and transparent
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Celebrating every financial win—big or small
When you bank with us, you bank with people who care about your goals, your progress, and your future.
People Also Ask
Will a Credit Builder Loan really help improve my credit?
Yes, consistent, on-time payments can help strengthen your payment history, which is a key factor in your credit score.
How fast will I see results?
Many members see progress within 3–6 months, depending on overall credit factors.
Do I need savings to qualify?
No. Colorado Credit Union advances the full loan amount on your behalf.
Is this safe if I’m rebuilding?
Yes, this loan is designed specifically for beginners and rebuilders. No judgment, no stress.
Frequently Asked Questions
How do I access my funds?
Your available savings increase as you make monthly payments. The principal portion of each payment becomes available in your savings account.
What loan amounts and terms can I get?
Borrow $500–$2,000 with 12–24 month terms.
How is the interest rate calculated?
Your rate is based on the current Colorado Credit Union Share Savings rate plus a 3.00% margin.
Start Building Your Credit Today
Your financial future begins with a single step—and we’re here to take it with you.
Whether you're building credit for the first time or starting over, we’ll help you move forward with confidence.
Ready to get started?
Apply today and build your credit with a partner that’s truly committed to you and your future.
* APR = Annual Percentage Rate. Based upon approved credit.
** Not all will qualify. Loans subject to approval requirements.
Membership Eligibility Required.