Credit Builder Savings
Credit builder savings can help those that want to increase their credit scores, struggling to save money, and build credit history. This type of program is not for someone who has an emergency and needs immediate funds.
Ideal for: Increasing credit scores, Saving money, and Build credit history
To enroll in a credit builder savings program you must be 18 years old and have a bank account so that you can make loan payments. Typically, there is a moderate initial fee in addition to the monthly interest payments on the loan. This is where the lender makes their money. Once an individual is approved the loaned amount goes directly into a savings account and is not accessible to the borrower. Once the terms have been met and the loan has been paid back the money is released to the borrower along with any interest accumulated for the duration.
Rates for credit builder savings vary like any other type of loan and are generally higher than mortgage rates but less than some credit cards. If the loan is not paid back on time then additional late fees are incurred. It will then become counteractive by additional expenses and a decline in credit score.
Reasons why someone would enroll in credit builder savings:
- Saving for a Vacation
- Saving for College
- Saving for down payment on a car
- Establish Credit
- Boost Credit Scores
NOTICE: NewHomePrograms.com LLC has a business relationship with CreditCardBrokers.com and may receive financial or other benefits from referrals. There are other service providers with similar services. You are free to shop around to determine that you are receiving the best service and best rate for these services.