To give students the opportunity to establish a good credit score while learning to maintain stable financial standing.
The Build Your Credit Loan will have an amount of $1,000 and a length of one year. The initial rate for students without a credit score will be 7.5%. The loan also includes a background check, opening fee, and closing fee which totals $30.
The money from the loan is not issued to the member but rather stored in a secured account within the Credit Union. This amount is then used to pay off the principal balance of the loan. Payment of the full interest expense before the loan is issued is a prerequisite of the Build Your Credit Loan.
The credit limit will be chosen by the member and they can choose any credit limit under $5000. The interest rate on the credit card will be determined by the member’s current credit score. In order to secure the credit card, the member must have the amount equal to the credit card’s limit in an account with First Miami.