Credit Builder Loan

This loan is for people with issues on their credit file. This loan offers a chance to rebuild a credit file.

Check your eligibility

Are you eligible to apply?

Credit Builder Loans are available in two steps, the first being a maximum of £250 and the second up to £600. This credit union Credit Builder Loan must be repaid via Standing Order.

Before applying for your credit union Credit Builder Loan with Beacon Savings & Loans, please read the following to avoid any potential negative impact on your credit file.
The interest charged on these loans is 30.3%APR

You are likely to be accepted for a Saver Loan if you…

  • are over 18
  • have enough income to cover your loan and a minimum of £10 per month savings.
  • Pay via Standing Order, you must have your payment transferred to Beacon Savings & Loans prior to any funds being paid.

Key Features

  • You can apply straight away, there is no need to save first.
  • Affordable payments over a term of up to 1 year.
  • Simple repayments, your Standing Order comes straight to Beacon Savings & Loans
  • Save as you repay your loan – you’ll be amazed how quickly your shares can grow!! Minimum savings of £2.50 per week is required, payment can be made Weekly, Fortnightly, Four-Weekly or Monthly.
  • No hidden charges, set up fees or penalty fees for repaying your loan early.
  • Available for people who are in a Debt Relief Order or and IVA

Before you apply…

We will need to perform some checks before we can allocate your loan.

As an ethical lender, we take responsibility for ensuring that you can afford the repayments, including the minimum savings amount of £2.50 per week (£10 per month). It’s equally important that by providing your credit union Credit Builder Loan, we do not contribute to over-indebtedness.

To achieve this, we’ll review your credit file and use open banking (you will need to grant us access as part of the application process). Don’t worry, we’re not looking for perfect credit files – we understand that life happens to everyone. If you have any concerns, feel free to contact us.

Please be aware that if you supply bank statements instead of open banking it will increase the time taken to assess your loan application, as we must analyse every transaction to see which category it belongs to.

Ready to start? Click the ‘Check My Eligibility’ button on the section below to begin.


Can I apply for a top-up?

Members are able to top up these loans. When you take a top up, your previous loan is repaid and a new loan is created. The amount you receive will be less than the total loan allocated.

You will be able to apply for a top-up after 3 monthly payments have been made.  There must have been 13 weeks since your previous allocation

Credit Builder Loan Terms and Conditions

Members are required to make regular payments to their credit union account. When a member has a loan outstanding they are expected to may a share payment of at least £2.50 per week or £10 per month.

Loan Value

Credit Builder Loans are a available to apply up to £600, the first loan is a maximum of £250. If you are currently in an IVA or Debt Relief Order, the maximum loan will be capped at £500.

Interest Rate

The interest charged on this product is 30.3%APR (26.8% Annualised 2.23% Monthly).

Loan Term

The maximum loan term will be one year.

Method of Repayment

This loan must be paid via Standing Order.

Repayment Frequencies

This loan may be paid Weekly, Fortnightly, Four-Weekly or Monthly. Payments must align with frequencies offered by your bank.

Savings Requirements

You must save a minimum of £2.50 per week (£10 per month) with your repayments.