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Senior Member
Banking Scam!
So I'm a member of a credit union, and have been super happy with how they operate. Loans are easy when you want them. All the online tools are there. Tons of free ATMs as the unions network together.
But I got an email on a "credit booster" program. They loan you X amount and put it into a non interest bearing savings account - but it is NOT available to you. You make fixed payments at 5.75% and when you have paid off the "loan", they release the money to you. What the fuck? Pay them interest to save money? Why not just open an interest savings account and save money? Oh...you want them to ding your credit if you can't actually save one month or your income changes and you can no longer participate?
While the interest seems low, it is interest you pay on money you are saving! I know some people want ways to build their credit, but this "credit builder" will have little to no affect on your ability to borrow, except from maybe the credit union. I could see someone like CashCall or other payday loan types of places offering this plan...they are experts in legally scamming people out of money, but my credit union? I think I'm going to write them a strongly worded letter/email. LOL
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