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If you have no credit or a negative credit history, you may find it difficult to get approved for credit at favorable interest rates and terms. That’s where a credit-builder loan comes in. It can help you establish or reestablish a good credit score. Here’s a closer look at credit-builder loans and how they work.
What’s a credit-builder loan?
Also known as a “fresh start loan” or “starting over loan,” a credit-builder loan is more of a moderated savings plan than a loan. It’s designed to help people with little or no credit build a credit history. A credit-builder loan may be more effective for people with thin credit than negative credit,…