Credit Recovery

These are some reliable methods for building or rebuilding your credit.
  • Credit Builder Loans
  • Secure Credit Cards
Credit Builder Loan
  1. You will need $1,000 for a CD (certified deposit) and around $100 for loan fees.
  2. Ask for a credit builder loan at local banks or credit unions.
  3. The credit builder loan will require you to use the $1,000 you have to open a CD at the bank.
  4. The CD will earn interest while it's in the bank.
  5. The credit builder loan will be secured with the CD in the bank as collateral.
  6. The loan is almost garunteed to be approved.
  7. The bank will loan you $1,000 as part of the credit builder loan.
  8. There will be a fee of around $50 to $100 for underwriting the credit builder loan.
  9. The CD of $1,000 must remain in the bank until the loan is paid off.
  10. You can use the $1,000 the bank loaned you at your discretion. This includes using it to pay back the loan slowly.
  11. Instead of paying off the loan early, make regular payments on time that will count towards your number of on-time payments in your credit history.
  12. When the credit builder loan is repaid, you can then withdraw the money in the CD along with any accumulated interest.
Secured Credit Card
  • A secured credit card needs collateral.
  • A unsecured credit card does not need collateral.
  • Be wary of banks that offer unsecured credit cards to people with bad credit histories.
  • Secure credit cards are a good way to get credit cards with reputable banks and build your credit history.
  • Secure credit cards usually have do not have perks or benefits. The secure cards do not have things like 0% intro APR, cash back, travel points or welcome bonuses.
  1. You will need between $200~$500 (you could use the money received from the credit builder loan if you did that first).
  2. Sign up for a secure credit card.
  3. You will be asked to send/deposit the money that will be used for the secured credit card.
  4. You are highly likely to be approved.
  5. You will get a initial credit limit close to the amount you deposited.
  6. Any late payments may delay or obstruct the timetable for getting your deposit back.
  7. The bank will hold the deposit until conditions for the deposit's return have been met.
  8. Although each bank has different terms and conditions, you will have the deposit returned after you've established a good history of on-time payments.