Borrowing @ 40% to improve credit. Is it worth it?

It's NEVER worth it.

She went to the wrong credit union. Credit unions -- as long as you're not in bankruptcy and have no serious NEGATIVE credit history -- will work with you in building credit.

Hell, even Orchard Bank and Citibank will let you start out with a $1,000 secured VISA card. After just one year of using this card, your credit score should be good enough to be considered even for a car or home loan.

Once that initial credit history is established -- and you keep yourself in good standing -- the credit offers will begin to cascade. Get a couple of department store credit cards -- use them occasionally and sparingly -- and you'll be knocking on "780" inside of two years.

But never should ANYONE feel compelled to use one of these "companies" that charge loan-shark rates to "build credit".

Ran out to buy a BMW. Some college professor..
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What’s more, the professor’s relationship with World Finance has indeed improved her credit. Since taking out that first loan, she’s obtained two different credit cards, and also bought a brand-new BMW with 2.9% financing. All with essentially no help at all from her primary financial institution, which is Missouri Credit Union. The debt the professor is taking on may or may not be wise, given her unique individual circumstances. And the credit union could in theory be a valuable resource in terms of helping her work out whether, for instance, she can really afford that car. But the relationship there is broken, and I see no chance that it will be fixed.

http://blogs.reuters.com/felix-salmon/2012/01/05/adventures-with-consumer-lending-missouri-edition/

"And credit unions are in any case often difficult institutions to navigate: it’s never entirely obvious who’s allowed to join any given one."

This is true.

But no one ever said it SHOULD be obvious.

Here's a good start: http://www.creditunionsonline.com.

Click on your state. Browse by city. Click on their websites. If it's not "obvious" whether you qualify for membership, you could always CALL THEM and ask. You remember the telephone, right?

>Once that initial credit history is established -- and you keep yourself in good standing -- the credit offers will begin to cascade. Get a couple of department store credit cards -- use them occasionally and sparingly -- and you'll be knocking on "780" inside of two years.

Exactly, as NYCMatt points out, it's not that hard to build a good credit score. A little effort is all it takes. If someone can't event make that effort to get a high score, he or she definitely isn't someone who should pass a co-op board.