Credit Builder Loan Program

A Certificate of Deposit is a type of savings account with a fixed interest rate that’s generally higher than a traditional account. When money is deposited, you’re usually paid a high interest rate in exchange for leaving your funds untouched for your chosen term length (between 24 and 60 months). Our Certificates of Deposit are insured by the FDIC. ^{footnote 33}

This program is designed to help people build or establish credit. You’re given a fixed rate loan, and the proceeds go into a Certificate of Deposit savings account. You can choose an amount between $1,000 and $5,000 and a term between 24 and 60 months for a payment that works for you. ^{footnote 22, footnote 33}

This can help improve your credit score because it builds a history of on-time payments, which you can automate with Auto Pay. ^{footnote 11} You’ll then receive the total value of the loan (including interest) once the loan is paid off and the Certificate of Deposit has matured. ^{footnote 44}

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

You can borrow between $1,000 to $5,000 if you’re approved for BMO’s Credit Builder loan. Since this is placed in a Certificate of Deposit, the funds will only be accessible once the full loan has been paid off.

Yes, you can. Since the Certificate of Deposit wouldn’t be fully matured to your chosen term, an early withdrawal fee will apply to close this. ^{footnote 33}

Auto Pay is a feature that allows you to establish automatic monthly payments from any eligible BMO Checking account. ^{footnote 55} Enjoy a 1% interest rate discount for setting this up when applying for BMO’s Credit Builder Loan Program and peace of mind knowing that you won’t miss a payment.*footnote star

^{*footnote star details} The 1% interest rate discount only applies when Auto Pay is set up at origination of your BMO Credit Builder loan. This is not applicable to existing Credit Builder loans.

There is a $75 loan processing fee. ^{footnote 22} There is no fee for paying off and closing the loan early. An early withdrawal penalty would apply if the Certificate of Deposit is closed prior to its maturity date. ^{footnote 33} Paying the loan off early would also limit your potential to establish a positive credit history.

Typically, you need to have a loan for at least six months to start building credit. This timeframe allows lenders to start seeing a consistent payment history. Making on-time payments over this period can have a positive effect on your credit score. ^{footnote 11}

We have several payment options for you to choose from. You can pay:

• Using Auto Pay to set up monthly, automatic payments for any eligible BMO checking account ^{footnote 55}
• Online
• By mail
• When you visit a branch

You can also send higher payments at any time without incurring fees. For all the details, visit Ways to Bank.

Building a positive payment history takes time but is well worth it! Keep in mind, your credit history is influenced by various factors, including other accounts you have open elsewhere. Late payments on these additional accounts can lower your credit score, even if you’re on time with us.

While we can’t guarantee that your credit rating will improve, timely payments on all your accounts should have a positive effect. ^{footnote 11} Access our Credit Builder Loan Program for no-fee, no-impact access to your credit score and learn more about building your credit.