Is a Credit Builder Loan Right for You?

By: Rachael Dubin, Senior VP of Lending at Community Capital New York

At Community Capital New York we have long understood that a solid credit score is an essential asset for building wealth, buying or renting a home or even pursuing an entrepreneurial venture. Be assured that lenders, landlords, insurers and vendors will examine your personal credit score not only to set rates but to make decisions about conducting business with you and your company.  As part of our mission to foster economic opportunity for all, Community Capital New York began offering Credit Builder Loans nearly five years ago.  As the name implies, these consumer loans are designed to help our clients establish and boost their credit history.

The Credit Builder Loan allows clients to determine how much they want to save, up to $2500, and the duration of time they wish to save, knowing that the longer the period of time passes, the greater the impact will be on the credit score! On a monthly basis, the client makes a payment to us, which we deposit into a bank account. At the end of the savings period, the client has been successful not just in terms of meeting a savings goal, but they have built their credit file in the process. By structuring the savings as a loan, we are able to report the savings payments to the Credit Bureaus, thereby improving the clients’ score.  Once they have reached their savings goal, the full amount of the funds they have saved is returned to them.

Clients that have participated in our Credit Builder Loan program have seen a jump of up to 50 points.  While the Credit Builder loan is a great product if you have a short credit history, if your credit history is damaged, there are other resources that may work better for you.

To learn more about how you can get a Credit Builder loan, please call Rachael Dubin at (914) 747-8020, ext. 118 or email  Please also visit our website at