Tradelines Starting At $150
****IF YOU DO NOTHING ELSE DO THIS TO BUILD AND/OR RESTORE YOUR CREDIT****
A credit builder loan is an installment loan that exists for the sole purpose of helping build credit.
The main difference between credit builder loans and other types of loans is that you don't get the money until you've finished repaying the loan. By holding onto the loan funds as you make payments, the lender is able to avoid any risk while you prove yourself as a reliable borrower.
Opening a credit builder loan can help you build this payment history, since part of the process involves making monthly payments. Like any financial product, a credit builder loan is a tool, so how you use it matters. If you make payments on time, the lender will report positive payment history to the credit bureaus.
Credit builder loans are just one way to improve your credit.
By typically having a low annual percentage rate, relatively small loan amounts and relatively brief loan terms, credit builder loans are designed to increase the likelihood that you can repay the loan and build positive credit.