Ann Arbor State Bank Ann Arbor State Bank
125 West William St.
Ann Arbor, MI 48104 (734) 761-1475

Personal Lending

Ann Arbor State Bank offers a complete range of retail loans designed to help you achieve your objectives — whether that’s a new car, a new master suite, access to loans for college tuition, or practically anything in-between.

1. Why do I need good credit?
To secure a better rate on a car or mortgage, you need a history of paying back loans and your monthly bills on time.

2. How do I get that first loan without a credit score?
A Credit Builder – CD Secured loan from Ann Arbor State Bank is a solid choice for that first loan to help you establish your credit. This loan lets you start building a relationship with a local lender in Ann Arbor, while helping to build a positive credit history at the same time.

3. How does a Credit Builder loan work?
Ann Arbor State Bank makes the loan to you and places your loan proceeds in a Certificate of Deposit that matches your loan term. The CD is collateral for the loan, and you won’t have access to it. You will pay the loan off over a period of time (minimum 12 months – maximum 5 years). We can find a payment schedule that works for you. Call us for details on the minimum and maximum loan amounts available.

4. How do I make my payments ?
Monthly payments can be processed through automatic deduction, on-line banking, in the branch, or by mail. We will work with you to set up a payment method that works for you.

5. What happens when the loan term is done?
After paying the principal amount of the loan in full, the proceeds of the CD and any earned interest will be turned over to you. You have made payments on a loan that should assist you in building your credit history.

6. What if I don’t make my payments?
As you make the principal payments on the loan, you reduce the principal balance that you owe to Ann Arbor State Bank. As the principal balance decreases, the amount of the CD needed as collateral for the loan also decreases.

If you stop making payments on your loan, you will be in default of the loan. When that happens, Ann Arbor State Bank will take money from the CD and apply it to your loan balance. The remaining amount will be turned over to you. You will also receive the interest earned on the CD. We will work with you to encourage you to keep making payments on your loan. However, if your default (failure to make a payment) lasts more than 15 days, Ann Arbor State Bank may take the action described to pay-off your loan. Ann Arbor Sate Bank will take this action before it is required to report your default to a credit bureau, so that you get credit for the payment history you established for the loan.

7. What are the other terms of the loan?
The loan has a very attractive interest rate (call us for details). There is no money down and no fees. Monthly payment is determined by the amount borrowed, the interest rate and the length of the loan. Payments are reported to major credit bureaus. There are no origination fees or pre-payment penalties.

8. Other Important Things to Remember About Your Credit Score
Many factors have an effect on your credit score, both positive and negative. If you don’t pay other loans or bills while you have your Credit Builder loan, your credit score may not improve. It is important that you handle your other financial matters appropriately.

9. Free Credit Report
You can always obtain a free copy of your credit report, or call1-877-322-8228, or complete the Annual Credit Report Request Form and mail it to: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281. You can obtain additional copies of your credit report from a credit bureau, for which you may be charged a reasonable fee.

10. Eligibility Requirements.
Participation in the Credit Builder program is subject to credit approval. Ask us for details.


  • Periodic checkups with branch and credit score monitoring.
  • Referrals to Financial Counseling partners.
  • The potential to establish good credit.
  • The ability to get the proceeds of the CD when the loan is paid.