But there is another exception to that rule, and that’s a credit builder loan

But there is another exception to that rule, and that’s a credit builder loan

Obviously, you’ll need to make all of your debt payments on time from now on. You should also avoid incurring any new debt, since it will be difficult to repay.

Let me explain: these are loans that are designed specifically for people with either no credit or bad credit. They’re offered by some banks and credit unions and are well worth having.

A credit builder loan works by giving you a loan in which the proceeds are deposited into a savings account. The monthly payments are automatically drafted out of the savings account by the lender to pay the loan. Loans are for small amounts, have reasonable interest rates, with terms of anywhere from 12 to 24 months.

Let’s say that you take a credit builder loan for $500. Continue reading “But there is another exception to that rule, and that’s a credit builder loan”