Question 1

How does the credit builder loan program work?

Accepted Answer

This is a unique account specifically designed to help people build or establish credit. One of the best ways to do that is to make on-time payments. With this program you are given a fixed rate loan that is then used to open a Certificate of Deposit (CD) for the same amount. You can choose the amount of the loan (minimum $1,000), and the term (24-60 months) for a payment that works for you and that will not change.
We make it easy to make on-time payments with Auto Pay. When you establish monthly automatic payments from any eligible BMO Checking account, you enjoy a 1% interest rate discount plus the security of knowing you will not miss a payment.
When you make on-time payments for this loan, it reflects positively on your credit score. When you do this and if you do not have other factors weighing against your credit, it should help to improve your credit rating. When the loan is paid off in full, you will receive the total amount of the CD (i.e. the amount of the loan) plus interest!

Question 2

How soon will I see a boost in my credit score?

Accepted Answer

It takes several months to establish a positive payment history, but it is well worth the effort! However, please be aware that your credit history is affected by several different factors, including all the other credit accounts that you may have open elsewhere. Just as on-time payments positively affect your credit score, late payments will weigh against your credit score.
Even if you make on-time payments on this account, late payments on other accounts can bring down your credit rating. Therefore, BMO cannot make any guarantee that your credit rating will improve. However, if you make timely payments on this and all your credit accounts, you should realize a positive benefit to your credit score.

Question 3

How do I qualify for the Credit Builder Loan Program?

Accepted Answer

There is no minimum credit score for our Credit Builder program. So, if you have no credit history or a low credit score, you may still be eligible. We will look at several criteria including how you are currently paying your creditors, debts and income to ensure the repayment plan you select fits your needs.

Question 4

Are there fees associated with the loan?

Accepted Answer

There is a $75 loan processing fee. There is no fee for paying off and closing the loan early. An early withdrawal penalty would apply if the CD is closed prior to its maturity date. Paying the loan off early would also limit your potential to establish a positive credit history.

Question 5

How do I make payments?

Accepted Answer

We make it easy for you to make payments by the method most convenient for you. You can set up Auto Pay to establish monthly automatic payments from any eligible BMO Checking account. You may also pay online, by mail, or when you visit a branch. You can send higher payments at any time without incurring fees.

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