![]() ![]() ![]() Think about your current situation – some of these products might be right for you now, some might be better for later, and some might not be right for you at all! In addition to secured credit cards and credit builder loans, there may be other products that can help you build and improve your credit. When the loan is repaid, the money is yours again.That money is used to pay off the balance of your loan over time.A loan is opened for an amount you already have in a savings account or a certificate of deposit with a bank or credit union.Small Dollar Loan – if you have some money that you don’t need to touch for a while. You build credit as the financial institution reports your payments to the credit bureaus.Your security deposit remains untouched unless you don’t make your credit card payments. You provide a cash security deposit, usually equal to the credit limit ($50-$200).Secured Credit Card – if you need to establish credit, have a low credit score or are denied a regular credit card. At end of the loan term, the account will be unlocked and the money is yours.Monthly payments go into a locked savings account.You don’t need to provide cash up front.A loan is opened for a specific dollar amount determined by the lender.If you’re just beginning your credit-building journey or if you haven’t used credit in a long time, consider one of the following:Ĭredit Builder Loan – if you have little or no money in savings. What are some safe credit building tools or products, and why use them?īanks, credit unions and other lenders offer many tools or products to help you build credit.
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