Consumers who have gone through tough credit times are always looking for ways to
build and rebuild their credit reports and scores. And, the credit repair professionals
with whom they work are constantly looking for new ways to serve their clients’ score
improvement needs. Can a credit builder loan be an “outside the box” solution for both?
A credit builder loan is a small loan normally offered by credit unions and marketed totheir members as a way to rebuild their credit. The loan is normally no more than a few
thousand dollars. The kicker about the credit builder loan is the money is usually not
available to the consumer until all payments have been made.
So, for example, if you borrow $1,000 the money goes into an interest bearing account
in your name but you cannot access the funds. After you’ve made all of your payments
the money is unlocked. You’ve just successfully paid off a loan, which shows up on your
credit reports. And, you have a nice windfall of cash in the bank that can be used to pay
off credit cards or as an emergency fund.
You might be thinking, “Why in the world would I take out a loan if I can’t access the
money?” That’s a good question. The answer is…remember, this is a loan with a
specific purpose, which is to help you get something good on your credit reports. If you
want to borrow money and get immediate access to it then a credit builder loan isn’t
really the best option.
The value to your credit scores is obviously the positive tradeline that is now on your
credit reports. Be aware, however, that many credit unions do not report to all three of
the credit reporting agencies. That means you’ll want to shop around for the “deal” that
results in the most prolific credit reporting possible.
Michael B. Citron is an internationally known public speaker and author. He lectures for professional associations worldwide. Michael is a serial entrepreneur who is dedicated to living the American dream, and helping others to do the same. His role at DisputeSuite.com has placed him in the spotlight of the credit repair industry. DisputeSuite is the largest provider of technology and education services to the industry, and has been a catalyst in the forward movement to standardize the credit repair industry.
P.S DisputeSuite provides a variety of solutions for your credit repair business. From engaging custom websites, to dispute processing services, to a robust CRM with automations and portals, DisputeSuite is a One-Stop Shop to making your Credit Repair Business A Success! Let’s chat today to discover the best plan for you: 727-877-6812 or support@disputesuite.com
FREE WEEKLY WEBINARS! Register here to join us weekly to hear industry updates, expert speakers and business tips & tricks!
