Frequently asked questions
What is a Credit Builder Program (Formerly ClimbLoan)?
A Credit Builder Program is a savings vehicle designed to help you build up your financial savings while also rebuilding your credit score.
How does a Credit Builder Program work (Formerly ClimbLoan)?
Climb approves you for the Credit Builder Program, but instead of the funds going directly to you they are held in a secure trust account. As you pay off the loan with small bi-weekly, weekly or monthly payments we send payment reports to the credit bureau which in turn gives you the chance to establish a positive payment history. Once you have paid off the amount, the funds are released from the trust account and deposited right into your bank account.
What is the interest rate for a Credit Builder Program (Formerly ClimbLoan)?
Our interest rate is 15.99%.
When will this show up in reports from the Credit Bureau?
We will send monthly reports to both TransUnion and Equifax as an active installment tradeline to help build your credit score as quickly as possible. Once a payment is made, it can take up to 60 days to appear in your file.
How are payments made on a Credit Builder Program (Formerly ClimbLoan)?
Payments are debited automatically through a pre-authorized debit from your personal bank account on a monthly basis.
Who holds the Credit Builder Program (Formerly ClimbLoan)?
Upon successful approval of your application, you will be automatically invested into a Federally Regulated Financial Institution Savings account.
Is this a loan?
No. This is not a loan, as there is no cash provided upfront. This is a secured savings account designed to rebuild your credit score while investing savings in the future. Upon completion of the, the funds are released to you in full.
Can I cash out early?
Dependent on the term and payment, you can access the equity that you have invested at any time. However, keeping the program intact will continue to rebuild your credit score. If you are only a few months into the program and looking to cancel, you will need to adhere to our cancellation policy.
Would I qualify for a Credit Builder Program (Formerly ClimbLoan) if I haven’t been discharged from bankruptcy or finished making payments in my consumer proposal?
Yes. A Credit Builder Program can help repair the damage done by bankruptcy, consumer proposal, debt management or credit counselling. This is all dependent on whether you have the ability to make your monthly savings payments.
What are the terms and payment amount?
Weekly and monthly payment options are also available.
Payment does not include insurance coverage