One Simple Way to Build Credit and Save Money
Part of living a Simply Frugal Life is keeping debt to a minimum. Credit can be a double edged sword. It’s important to have good credit when it’s time to buy a car or house. It’s hard to establish credit without establishing debt. Here is a great way to either establish credit or rebuild damaged credit without adding debt.
Self Lender has a program called a “Credit Builder Loan” and here are the details:
A credit builder loan is a small loan that’s held in a CD account for 12 months. The account is FDIC insured, earns 0.10% APY† interest and is deposited in your name during the term.
The credit builder loan is designed to help you save money and establish a credit history in a safe, responsible way.
The credit builder loan offered inside Self Lender works like this:
- Self Lender’s banking partner lends you money that is deposited in an FDIC insured, certificate of deposit bank account (“CD account”) for 12 months.
- Next, you make 12 equal payments ($97.00) over the course of your term to repay the credit builder loan. Payment history is reported to the credit bureaus each month.
- At the end of the term, you’ve paid off your loan and your CD has matured (and earned interest!). Plus, you’ve demonstrated months of payment history to the credit bureaus.
There is a $12.00 Administrative Fee to set up the loan and you are paying interest (10.57%). It’s a low cost option for limited or damaged credit.
At the end of the loan term, you have $1100 plus interest. Not only are you building your credit, but you have just established an emergency fund!
Are you ready to get started? Sign up HERE !
Now you’re one step closer to living the Simple Life you desire.
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