Credit Union Helps People Rebuild Their Credit Scores
November 14, 2013
Riverside, Calif. Riverside-based Altura Credit Union has rolled out a new loan, the "Credit Builder Loan," created specifically to assist people who need to rebuild their credit score.� With the tough economic conditions and job losses brought about by the "Great Recession" of recent years, a disproportionate number of people in the Inland Empire were unable to pay their bills and, as a result, their credit scores dropped dramatically.
"A low credit score can make it very difficult for people to manage their financial lives," said Jennifer Binkley, Alturas chief operating officer.� "It makes it harder for people to borrow money, and if they can get a loan, they pay higher interest rates. It becomes so much tougher to buy a car or a home.� Plus, a low credit score can even hurt your chances of renting a new place or getting a new job," she added.
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Credit Scores are calculated using pieces of financial data from an individuals financial history.� The five major categories are:� payment history, amounts owned, length of credit history, new credit and types of credit.� Payment history accounts for about 35% of the score, so any late payments will lower the credit score.� Credit scores top out at 850, but anything below 659 is considered only "Fair," and scores below 580 are labeled as "Very Poor."
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With the Credit Builder Loan, an individual can borrow up to $3,000 at a competitive rate, even those with low scores.� The borrowed funds are placed into a CD, called a Share Certificate at Altura.� This loan contributes to a high loan score in several ways, including an on-time payment history.� Once the loan is paid off, the borrower has access to the cash.
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"Altura created this loan as a way to offer people a lifeline and an opportunity to rebuild their score and move forward," said Binkley.� "We look at a low credit score and see an opportunity to help."
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The Credit Builder Loan is the latest offering in Alturas line of credit recovery products.� As a credit union, Altura is committed to its Members as well as the community at large.� Altura does what credit unions were founded to do offer help and financial alternatives.� The line of credit recovery products are designed to do just that to help people in the Inland Empire regain their financial footing.
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For more information on the Credit Builder Loan and other credit recovery products, like Reliance Checking, visit Alturas website:��www.AlturaCU.com.� Anyone who lives, works, worships or attends school in Riverside and San Diego counties and selected cities in Orange and San Bernardino counties can become a member of Altura.
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Altura is very proud of its 56 years of service to Members in the Inland Empire.� Today Altura is open to anyone who lives, works, attends school or worships in Riverside and San Diego counties, as well as selected cities in Orange and San Bernardino counties.� Altura Credit Union,�www.alturacu.com, has been recognized with the California Award for Performance Excellence (CAPE), the states equivalent of the Malcolm Baldrige National Quality Award.� Today, Altura Credit Union 85,500 members and has $689.4 million in total assets.� For more information on Altura, visit our website,�www.alturacu.com, or call 1-888-883-7228.
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