Your Credit Questions and Answers

A Credit Builder Loan is a type of loan designed to help individuals with little or no credit history establish or improve their credit score. The loan is typically offered by a financial institution such as a credit union or community bank. The way it works is that the borrower applies for the loan and is approved for a small amount, usually between $300 to $1,000.  The loan proceeds are then deposited into a savings account, which the borrower cannot access until the loan is paid in full.  The borrower then makes regular payments on the loan, typically over a period of 12 to 24 months. As the borrower makes payments on time, the lender reports the borrower's payment history to the credit bureaus, helping to establish or improve the borrower's credit score. Credit Builder Loans to Establish Credit Credit builder loans can be an effective way to establish or improve credit score, especially for people who have no credit or bad credit history. It's important to review the t

A secured credit card is a type of credit card that requires a security deposit before it can be used. The deposit acts as collateral for the credit line and is used to cover any unpaid balances or fees if you stop making payments.  Secured credit cards are often designed to help people who have a bad credit history or no credit history. They are similar to a prepaid card but they require you to make monthly payments They report to credit bureau, which can help to build your credit score if you make the payments on time or hurt your credit score if you miss or make your payments late. Even though you make the deposit on a Secured Credit Card you will still have to make the payment on time when the statement comes.  This is how you start building Credit.    On Time Payments are Critical Often if you make your payments on time for six months or a year the secured credit card company will refund you the deposit on your card and give you a credit line.  This will only happen if you make a

The steps to Building Credit with No Credit history are quite simple. and become an authorized user on a friend or relative's credit card to Build Credit with no Credit history . Lending institutions are nervous about loaning money to someone who has no credit history. Do not wait to start building your Credit History. It takes time for your credit to age and for your score to grow. Build a Credit History with No Missed Payments Much like if you move to a new town and someone you just met wants to borrow money.  The banks have no history to work with.  Your goal is to build a history of borrowing money and always paying it back on time. Step 1. Get a Checking Account First get a checking account from your local bank or credit union.  Many credit unions will have free checking accounts.  I refuse to be nickel and dimed by a bank, get a checking account with no monthly fees. Call around to the banks and Credit Unions in the area that have a location near your home or work. Most