Introducing GPO Federal Credit Union's "Save and Boost Credit Loan"
03/05/2025
The Save & Boost Credit Loan aims to assist individuals who may face challenges with traditional lending options due to lower credit scores or limited financial history. The key concept behind this loan is to help borrowers secure funds while simultaneously building their savings and improving their credit scores.
Here’s how the program works: When a member takes out a Save & Boost Credit Loan, the loan amount is placed into a savings account that remains inaccessible until the loan is fully repaid. This savings component acts as collateral, thereby reducing the risk for the credit union and often resulting in more favorable loan terms, such as lower interest rates. Meanwhile, the borrower makes regular payments on the loan, which are reported to credit bureaus, thereby aiding in the improvement or establishment of their credit score over time.
One of the distinguishing features of this program is the emphasis on financial education. Borrowers are provided with resources and tools to help them understand the importance of saving, budgeting, and managing credit. This educational aspect is crucial in ensuring that members not only benefit from the immediate financial assistance but also developing long-term financial habits that can lead to greater stability and prosperity. Members are also encouraged to meet with one of GPO’s Financial Counselors if they feel they are struggling with managing their finances. Appointments can be made here (LINK).
In summary, the Save & Boost Credit Loan represents a significant advancement in making financial services more accessible and beneficial to a broader range of individuals. By encouraging savings and responsible borrowing, this program has the potential to transform the financial futures of many, offering a path to improved credit scores or establishing credit.