Our goal is to give you the tools and confidence you need to improve your finances. Although we receive compensation from our partner lenders, whom we will always identify, all opinions are our own. Credible Operations, Inc. NMLS # 1681276, is referred to here as “Credible.”
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, according to the…