Credit Builder Loans: Are They Worth It?

If you're trying to build credit, you may have come across "credit builder" loans. But are they worth it?

Also called "secured credit cards," credit builder loans are designed to help people build or rebuild their credit. Here's how they work: You make a deposit into a savings account, which the lender then uses as collateral for a loan. You then make monthly payments on the loan, and after 12 to 24 months, you get your deposit back plus interest.

On the surface, credit builder loans can seem like a great way to improve your credit score. But there are some drawbacks to consider before you decide if one is right for you.

For starters, credit builder loans can be expensive. The interest rates on these loans are typically higher than those of unsecured credit cards or personal loans.

The Law Offices of Omar Zambrano has helped thousands of people and businesses in the past to get out of debt and start over.

Our goal is to help you find a fresh start FAST!

Schedule your free consultation just today! By Calling 626-338-5505 or visiting us at 12738 Ramona Blvd Baldwin Park CA 91706