Improve Your Credit Series: Credit Rehab Savings Loan
With a credit rehab savings loan you’ll make low weekly payments to your lender who will then report your good credit habits to the major credit bureaus. Your credit score will continue to grow as you make your payments on time and in full each week, once you’ve paid off the loan you will receive your money (minus any applicable fees) to do with as you please. Basically the money you’re borrowing stays in a type of savings account while you pay it off, the money acts as its own collateral while waiting for you to finish your payments. This type of loan is one of the best options for someone who needs to improve their credit score and jump start their savings account. If you’re looking to improve your financial future in order to make bigger investments or financial commitments then a credit rehab loan is a great first step.
Who can benefit from a credit rehab savings loan?
- Those who have been turned down for loans and new credit
- Those with past credit/ financial problems
- Those who have been discharged from a bankruptcy
- A student who has never had credit or taken out a loan
- Someone who is new to Canada and has no Canadian credit history
How do people use their credit rehab savings loan?
- For unexpected expenses or to build an emergency fund
- To pay off debt
- To put a down payment on a house
- To pay for school or to pay off student loans
- For retirement
- To pay for a vacation
- To make a down payment on a car
Your Loan, Your Money, Your Reason
Credit rehabilitation savings loans are perfect for people who just want to start saving some money, while improving their credit. No specific reason is needed to apply for a credit rehab savings loan, it’s your loan and once it’s paid off, it’s your money to do with as you please. Whether you’re looking to start an emergency fund, pay off student loans or get back on track after a job lose, a credit rehab savings loans will help you with whatever financial goals you have or issues that you want to correct.
Pros and Cons
When making any kind of financial decision it’s very important that you having all the information needed to make the best choice possible for your situation. Understanding both the pros and cons of a credit rehab savings loan will provide you with all the information needed to handle the financial responsibility.
Pros of a Credit Rehab Savings Loan
- Affordable: A credit rehab savings loans is very affordable, you’ll make one low payment each week until you’ve paid off your loan, the amount will depend on how big of a loan you decide to get. Because your weekly payment is so low most people often find that they do not need to make any significant changes to their budgets. You can expect to pay anywhere between $10 and $40 a week, depending on the size of your loan.
- Convenient: The convenience of a credit rehab savings loan is unparalleled. The rate of approval is extremely high, the application process simple and straight forward and the payments affordable. And once you’ve finished making your affordable payments not only will you have saved a significant amount of money but you’ll have improved your credit score and created a credit history for yourself. Doesn’t get any more convenient than that.
- High Approval Rate: Because the actual money you’re being lent acts as its own collateral the approval rate for a credit rehab savings loan is very high. Secured loans are a great option for those with lower credit scores or no credit history, the security means lenders take on less risk so they’re willing to lend to more people.
Cons of a Credit Rehab Savings Loan
- Waiting for Your Money: With a credit rehab savings loans you only get the money you’re borrowing after you’ve paid it off. For some people this might not seem like the best option because they need the money right away. What most people don’t understand is that a credit rehab savings loans has a specific use, it’s for people who aren’t able to get other types of loans because of their past financial issues. This type of loan is secured and therefore people with bad or no credit can be approved. A credit rehab savings loans improves your credit score and helps you save money at the same time.
- Interest and Fees: All loans and forms of credit have interest rates and fees, so while some people might decide against a credit rehab savings account because of the fees, they’ll be hard pressed to find any type of loan that doesn’t come with fees. It’s something we all have to deal with, what’s important is that you choose a credit rehab savings loans that works best for you.
Start Rebuilding Your Credit History Now!
Rebuilding your credit history is a serious task and sometimes it can take years, this is why it’s so important that you have a plan. Adding a credit rehab savings loan to your plan of attack will not only help you improve your credit score quicker but will help you save money. A credit rehab savings loan is a financial tool, one that is not only very easy to use but very easy to be approved for. No matter what your financial past looks like, a credit rehab savings loan can help you achieve your goals and refresh your finances for a brighter and better financial future.
Looking for another creative way to improve your credit score?
Read up on secured credit cards here.