What is the CEO Credit Building Ladder?
CEO’s Credit Building Ladder is a series of three (3)installment loans –all with 0% APR –that help borrowers build credit over several years.
Here’s how it works:
- Start with a $100 loan, payable over 6 months. If the loan is repaid without any late payments, you are automatically approved for the $300 2nd loan.
- If you repay the $300 2ndloan on time over 8 months, you are automatically approved for a $1,000 3rd loan payable over 20 months.
If you complete the Credit Building Ladder, making all payments on time, you will benefit in several ways:
- You will show 34 on-time payments on your credit history
- You will have three (3) installment loans opened and paid-in-full
- You will not have any hard inquiries on your credit reports
- You will pay zero ($0) dollar fees over the entire 2.5 years
If combined with properly managed revolving debt like secured credit cards, borrowers have achieved prime FICO scores (700+) within approximately 12 months. For those that may already have damaged credit, the benefits of the Credit Building Ladder will vary significantly and likely depend on additional steps you take to improve your credit. Ask a financial coach for more guidance.
Who can apply and how does it work?
Anyone that completes one of our partner’s training on credit may start on the first Credit Building Ladder with no additional approval required. To move up to the next step on the Ladder, borrowers must simply repay their current loan on time. At each step, a quick check-in with your financial Coach is required to review the impacts of the previous loan and submit for the next round.
Other things to consider
- Borrowers must successfully make all scheduled payments on one Credit Ladder loan before proceeding to the next. Borrowers that miss a payment may re-attempt a new loan at the same level of the Credit Ladder for a maximum of two attempts. For example, if you had a late payment on your $100 loan you won’t be able to get the $300 follow-up. Instead, you can try again with another $100 loan and proceed to the $300 if there are no late payments.
- A minimum of six months must pass in between Credit-Building Ladder loans. Borrowers may always pay off their loans in full at any time without any financial pre-payment penalty. If you already have negative information on your credit history, the effects of the Credit Building Ladder will vary greatly and be determined by other steps you might take over the course of your time using these loans. We suggest consulting with your financial coach for other resources to develop a broader credit-building plan and to view CEO’s Credit Ladder as simply one tool available to you.
- CEO does not consider credit scores nor conduct hard inquiry credit checks for any level of Credit Ladder applications.
- While the Credit Building Ladder exists only to help borrowers build credit, like all CEO loans, non-payment may harm your credit history.
How to apply
- Visit your local IRC office to complete a CEO Loan Application and meet with a Financial Coach. Here’s a list of the items you’ll need for the loan request:
- Personal email address
- Valid government-issued photo ID
- A checking bank account based in the U.S. with routing and account number
- Your financial coach can help you complete your application (loan decisions are usually made within three weeks of application).
- If approved, your contract will be ready for signature within three (3) business days of approval notification. You can review and electronically sign your loan contract.
- Funds are deposited directly into your bank account via electronic ACH and are available within one to three business days after signing the loan contract, depending on bank processing times.
For California Residents
- CA FINANCE LENDER’S LICENSE #60DBO54868
- LOANS MADE OR ARRANGED PURSUANT TO CALIFORNIA FINANCE LAW LICENSE
- FOR INFORMATION CONTACT THE DEPARTMENT OF BUSINESS OVERSIGHT, STATE OF CALIFORNIA