Building your credit takes time, but rebuilding your credit can prove to be even more difficult.  Financial institutions aren’t always willing to lend a helping hand to those who are rebounding from past credit mistakes, leaving you feeling hopeless with nowhere to turn.   Houston Highway recognizes that credit-building is a process, and offers several solutions.  Whether you are creating a new credit history or repairing a difficult credit past, Houston Highway is here to help put you on the road to financial success.

Why do I even need credit?

Loans are an inevitable part of life for most, and showing your creditors that you have a good history of borrowing and repayment is crucial in the application process.  Remember that building a credit history is very different than abusing credit.  Responsible credit-building doesn’t mean taking out a credit card, maxing it out, and then making the minimum payment every month.  Choose instead to use your credit card responsibly and pay off the balance each month.

A good credit history and score will save you money in the long run.  You’ll qualify for cheaper interest on home and auto loans, probably get lower insurance rates, and maybe even qualify for a better deal on renting an apartment.

How do I start building up my credit?

Credit Builder Loans at HHCU are designed with one goal in mind: improving credit score.  It’s a low-risk and manageable way to make strides toward improving your score.  Here’s how it works:

Step-Up Loan

Members will start off with a loan of $1000, which is deposited (and frozen) in Savings.  Over the next 8 months, the member pays off that loan at a rate of 6%.  After that loan is paid in full, a loan in the amount of $2000 is deposited into savings, and the member pays the loan off at the slightly lower interest rate of 5.5%. This continues in an 8-month cycle, with each loan amount stepping up by $1000 until the final stage, $5000 and 4% interest.  The payment schedules for these loans are flexible: make your payments weekly, bi-weekly, even monthly.

Single Loan

If the Step-Up Loan Process doesn’t feel like the right fit for you, we also offer a single loan option.  In this option, the loan amount of $1,000 + is also frozen in your savings account.  The amount remains frozen until it’s paid in full.  Interest rates for the Single Loan are based on your credit score.

With both Credit Builder Loan plans, you will receive dividends from the amount you have kept in savings.  For those building their credit for the first time, both of these plans are a great way to get into the habit of contributing regularly to a savings account.

Houston Highway wants our Members to have all the tools they need to get on the road to financial success.  We’re here to help you get back on track when it comes to credit.  Give us a call to find out which Credit Builder loan is right for you, or if you’re ready now, you can apply here!