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All You Need To Know About Credit Builder Loan- 2022
Manage episode 458900425 series 3576016
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Credit builder loans, offered by credit unions and online lenders, are designed for individuals with poor credit to help improve their scores. The loan amounts are small and are held in an account until fully paid, acting as forced savings with credit-building benefits. They differ from other loans as they offer a way to prove creditworthiness through consistent payments on an installment loan, which can diversify one's credit mix and potentially enhance credit scores.
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