You can build your credit by deciding to use the credit- builder loans. This method requires that you apply for a loan. Here is the catch, whether you have bad credit or good credit history, you will be approved. You don’t get to keep the loan you apply for, instead, it is deposited inside a savings account. This savings account will not be accessible until you fully repay your loan. On the other hand, if you are seeking to build your credit history from scratch, the loan helps you create one.
ADVANTAGES
a. This method positively affects your credit especially if you have no credit at all.
b. This tool makes it easy for those with bad credit to make a new start. If you apply for a loan, it will be approved irrespective of your previous history.
DISADVANTAGES
a. To gain the full benefits of a credit builder loan, it takes a lot of time. This is a disadvantage. Building credit takes a lot of time, but it is not impossible.