Everyone knows that building your credit is important and if you ever plan to apply for a credit card or auto loan, you’ll need to prove you are credit-worthy when it comes to paying off your debt.

If you are wondering how to establish credit or you would like to improve your credit score, contact a Member Services Representative today to learn more about our Credit Builder Loan. With this type of loan, the money you borrow is secured in a PFCU Savings Account for the term of the loan, and dividends are paid on the money while you make timely payments and establish your credit.

Once you have successfully paid the loan in full, the money becomes available in your account. Your payment activity will be reported to the three major credit bureaus and if you maintain scheduled payments, this may help to improve your score.


PFCU’s Credit Builder Loan program helps create a history of timely monthly payments on your credit history using a secure installment loan program. You can use this type of loan to take advantage of our banking payment structure, making it work for you. This type of loan helps create a chance for you to show you pay your bills on time without the risk of getting behind on your payments. You get all these benefits and a PFCU Savings account with dividends, it’s quick, painless, and easy.


Credit Builder Loans mimic the features of an installment loan program to produce low-risk opportunities to add good payment history to your credit report, which affects your FICO score. These features are similar to secured credit cards with credit limits but are seen as a different form of debt on your report. By utilizing varying forms of debt, you can grow your credit history to be diverse and stronger. Speak to one of our Member Services Representatives today about how we can help you add clean payment history to your report easily.


Your credit report monitors your repayment history of any personal debt you take on as an individual. When you make late payments, or miss payments entirely, this shows up on the history of your credit. The recurrence of this behavior affects your FICO score and the interest rates and eligibility for certain forms of debts you may wish to take on in life, like a new car loan or a new home mortgage. Credit Builder loans allow you to add positive installment loan payment history to your credit report, which is low risk and high reward. Rebuilding your credit becomes as simple as making several interest payments over the course of the life of the loan. This type of loan also provides you with a PFCU Savings account, which is also reported to credit bureaus as a form of a bank account. By utilizing multiple forms of accounts, debts, and obligations on your credit report, a diverse and strong profile can be created that reassures lenders and can help make them fight for your business. When lenders fight for your business, you can find easier eligibility and better repayment terms with lower interest rates.


  1. Loans Options between $250 - $1000
  2. Payment Terms from 12 – 18 months
  3. Low monthly or bi-weekly installment payments
  4. Competitive low rate - 4.00% APR*
Apply for a Credit Builder Loan


Learn more about all the products and services PFCU has to offer to help you by visiting our Personal Banking page.

*APR = Annual Percentage Rate. For each $250 borrowed at 4.00% APR over a term of 12 months, pay approximately $21.29 a month. Rate current as of 5/12/17. This is the credit union’s best rate. The available rates and terms are subject to change without notice. Offer of credit is subject to credit approval. Results not guaranteed. Improvement in credit score dependent upon your specific situation and financial behavior. Failure to make monthly minimum payments by the payment due date each month will result in negative reporting to your credit report, which will not improve your credit history. This project will not repair your credit, and negative credit history will not be removed from your credit report as a result of this program.

Refer your Friends
National Association of Federal Credit Unions 
PFCU is a proud member of the National Association of Federal Credit Unions
National Credit Union Administration 
Your savings federally insured to at least $250,000 and backed by the full faith and credit of the United States Government. National Credit Union Administration, a U.S. Government Agency.
Equal Housing Lender 
We do Business in accordance with the Federal Fair Housing Law and the Equal Credit Opportunity Act.

We provide links to external websites for your convenience. Philadelphia Federal Credit Union does not endorse and is not responsible for their content, links, privacy or securities policies.

Please note that the amount of money contained in your investment accounts are considered non-deposit products and therefore, are not NCUA insured, not credit union guaranteed, may lose value, are not guaranteed by any government agency. Securities, Financial Planning and Insurance products are offered through LPL Financial, and its affiliates, Member FINRA, SIPC. LPL Financial and Philadelphia Federal Credit Union are independent entities.