What is a credit builder loan? A credit builder loan is made to assist people who do not have a credit history or little build credit. It does not require good credit for approval. But it does require that you have enough income to make payments. It is different from the traditional loan because, with a credit builder loan, you can make fixed payments to lenders. And then have access to the loan at the end of the loan’s term. Credit builder loans are called so many names such as Starting over loans or fresh start loans.
How does a credit builder loan works? When you get the credit builder loan, the funds agreed will be transferred into the bank account held by the lender. Then you will make monthly interest payments and principal (reported to the credit bureaus} for a period of around 6 to 24 months. When the loan is paid, you will then get the money from the bank account. The main feature of the credit builder loan is that as you are building a nest, you also building credit. Do you want to know more about credit-builder loans? Then you are in the right place because the below will enlighten you more about it.
Where to Find Credit Builder Loans No Credit Check
Where can I get a credit builder loan? After deep research, I have come up with places that you can go to for a credit builder loan. However, you still need to check around if some of the below near you do not meet your requirement or vice versa. Check the below out, they will help you in the application process
- Community banks or credit unions
- Online lenders
- Lending circles
They are various community banks and online lenders that specialize in assisting people to rebuild and build their credits. It is good to search around and compare for the best one to go for and make sure it is safe.
How Can You Get a Credit-Builder Loan?
To get a credit builder loan they are some steps to follow. And that is why I have listed these steps below for your pleasure. All you just need to do is follow these steps to obtain the credit builder loan.
- Find the financial institute offering the credit builder loans like the one stated above
- Decide on the amount you will like to borrow
- Shop and compare among different lenders
- Apply for the loan by providing personal information like your name, address and others
You can rest assured that bad credit won’t affect you. Once you get approved and the loan is granted, you will make payments until the loan is repaid in full. After that, the loan will be given to you. Also, the cost of the credit builder loan depends on the lender that is why it is very important to shop around for different lenders. In conclusion, a credit builder loan requires no credit check.