I have never been much of a spender, but when I started investing in real estate, I knew that I had found my calling. I was capable of turning a simple loan into a large return, and it was really fantastic to see my efforts pay off. Unfortunately, sometimes money was tight, and I found myself taking out loans to invest in new deals. However, I was able to learn a few tricks of the trade to save money on loan interest, such as limiting the payback timeline and perfecting my credit. This blog is all about saving you money on interest.
Credit is tricky. If you have bad credit, it's more difficult for you to secure new or additional credit. If you don't get new or additional credit, you can't build good credit very quickly or very well for that matter. It's a vicious cycle that many consumers find themselves in. Fortunately, there are ways you can improve your credit standing. In addition to paying all your bills on time and paying down your revolving credit card balances, you can build your credit through strategic use of installment loans. Following are three types of loans you can use to build good credit.
Credit-Builder Loan
A credit-builder loan is offered by small banks and credit unions as a way to build or improve credit. It works differently than a traditional loan. When you're approved for a credit-builder loan, the money you borrow is placed in a savings account that you can't touch. However, you still make payments on the money borrowed just as you would with any other loan. When you satisfy the loan, you can withdraw your money from savings. This type of loan allows lenders to loan money to people with really bad credit without risk, which means that they're approved more readily.
Bad Credit Auto Loan
If you need a car and want to improve your credit, you may be able to kill two birds with one stone. If you have a sizable down payment and a job, you can get approved for a bad credit car loan through a financial agency that specializes in them. You may also be approved for a loan through a buy-here, pay-here lot. Just make sure that your payments will be reported to the credit bureaus. If you make all of your payments on time, your credit rating will improve provided that you're paying the rest of your bills as well.
Federal Student Loan
You can get a federal student loan regardless of your credit rating. If you're planning on going to school, taking out a loan and paying on it faithfully will give your credit score a boost. Just be sure to keep your student loan balances low. Balances that are too high can hurt your credit.
As you can see, there are several types of installment loans that can help build your credit. If you're looking for ways to improve your credit, talk to your lending institution today about products that can help you realize your goals.
For installment loans, contact a business such as Las Vegas Finance.
Share3 June 2016
