Irvine, CA
|

Hours: Mon-Fri 8am – 5pm PST

  • Why Our Loans?
  • Loans
    • Personal
    • Mortgage
    • Business
    • Student
  • About
    • About Us
    • Rates, Terms, & Licenses
    • Terms of Use
    • Privacy Policy
  • Contact
  • FAQs
  • Blog
(888) 574-6753

The 411 on credit-builder loans

Posted on Monday, June 17th, 2019

If you have poor or no credit, it’s difficult to get loans or to build your credit profile. One way to tackle these problems is to use a credit-builder loan. We’ve provided the 411 on credit-builder loans here so you can understand how they work and if one could be right for you.

Credit-builder loans have short terms and involve borrowing an amount of money that’s held in a bank account while you make payments on it. They are also known as Starting Over Loans or Fresh Start Loans. You may not have heard of them because they are usually available through smaller organizations such as community banks and credit unions – and not heavily advertised. Though this loan does not require credit history or good credit to qualify, you do need to show that you can make the necessary payments.

If you’d like to pursue a credit-builder loan, you’ll need to do some research to find one with a payment that you can easily afford. After you’ve applied for it, and, if approved, the amount borrowed is placed in an account you can’t touch until you’ve paid it all off. This makes the loan less risky for the lender.

To get the most out of this loan, you should:

  • Make all payments on time so that positive information is reported to Experian, Equifax and TransUnion.
  • Keep an eye on your credit score and report (visit the resources below to check your credit report for free).

Once you’ve paid the loan in full, you will receive the total amount and whatever interest has accrued on the account. If you didn’t miss payments, your hard work will show in an improved credit score.

This way of building credit takes patience and discipline. But if you stick to your payment schedule, a credit-builder loan can be a great asset in your credit-building toolbox.

To read more on this subject, go to:

  • What Is a Credit-Builder Loan?
  • How credit unions help raise credit scores
  • Credit Builders Alliance Offers Path to Financial Mainstream
Previous Post
Save while you travel
Next Post
Can I afford a pet?

Recent Posts

  • Homes in California, Georgia, and Texas Tuesday, December 8th, 2020
  • Homes In Indiana, Louisiana, Oklahoma, and New Mexico Tuesday, December 8th, 2020
  • Why Our Loans Tuesday, December 8th, 2020
  • Debt Consolidation Tuesday, December 8th, 2020
  • Recovering Financially in 2021 Friday, October 30th, 2020

Categories

  • Business (5)
  • Covid-19 (5)
  • Credit (16)
  • Finances (33)
  • Mortgage (6)
  • Student (1)

© 2023 Simple Path Financial, LLC. All Rights Reserved.

  • Rates, Terms, & Licenses
  • Terms of Use
  • CCPA Service Provider Addendum
  • Privacy Policy
  • Do Not Sell Request
  • CCPA Consumer Access/Deletion Request
  • CCPA Privacy Policy Notice

Licensing

Licenses
CFFL #60DBO-65920

Contact

(888) 574-6753

Social

Stay up to date by following us on Social Media

Facebook
LinkedIn

*This offer is for a business, mortgage, student, or unsecured personal loan referred or offered by Simple Path Financial, LLC®. All business, mortgage, and student loan requests submitted through Simple Path Financial, LLC® are funded by a third party.

SIMPLE PATH FINANCIAL LLC® is a lender and also provides loan referral services. Loans are not available in all states. In Alabama, Arizona, California, Florida, Idaho, Iowa, Louisiana, Maryland, Michigan, Missouri, Montana, New Mexico, Ohio, Oklahoma, Pennsylvania, Texas and Wisconsin personal loans are provided by Simple Path Financial LLC, a licensed lender. In Alaska, Arkansas, Kentucky, Massachusetts, Nebraska, New York and North Carolina personal loans are issued by Simple Path Financial LLC, compliant with state permitted usury laws.  In the states of Indiana, South Dakota, and Washington D.C. your personal loan will be fulfilled via our preferred network of third-party lenders. Your loan agreement will clearly identify the lender. For detailed information concerning SIMPLE PATH FINANCIAL LLC.’s licensing information please visit www.simplepathfinancial.com/rates-terms-and-licenses.

Simple Path Financial, LLC® has no control over participating third-party lender credit worthiness eligibility criteria. APR/Interest rates will vary depending on individual lender terms. Generally, all individuals applying for credit must be a U.S. citizen or permanent resident and at least 18 years old. Valid bank account and Social Security Number/FEIN are required. All loan applications are subject to credit review and approval.

You authorize us to make inquiries and obtain and confirm information about you as we deem appropriate for the purpose of evaluating your eligibility for this extension of credit, including obtaining credit reports, verifying your income, and contacting your employer. You also authorize us to provide identification information about you, and our credit experience information with you to others in accordance with applicable law. Duplicate offers received as a result of multiple mailing to the same person are void, as are multiple acceptances of the same offer. This offer is subject to the expiration date listed on your offer letter.

*Annual Percentage Rate. Not all borrowers will qualify for the same rate when a rate is listed “as low as”. Qualifying for rates listed “as low as” are based on the borrower’s credit worthiness, which includes factors such as debt ratio and credit history. Interest rates will vary and are based on lender terms. Ranges from 7.99%-36%. All loans may be subject to origination fees ranging from 1% – 5%, of the loan amount, if permitted under applicable state law. For detailed information concerning Simple Path Financial, LLC.’s licensing information please visit www.simplepathfinancial.com/rates-terms-and-licenses.

We will never discriminate on the basis of race, color, religion, sex, marital status, national origin or ancestry.

NMLS #1570007

*Para ver informacion importante sobre terminos y condiciones en Español, por favor presione aqui.

We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
Cookie settingsACCEPT
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Non-necessary
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
SAVE & ACCEPT