credit cards

6 ways to deal with limited or no credit

A 'credit builder' loan
Next
Slide 6 of 7
Previous
A 'credit builder' loan

This product is very similar to a secured card, except that it's in the form of a loan.

One example: Your bank makes you a small loan, which you use to purchase a CD, says Tescher. The bank holds the CD, and you make monthly payments. At the end of your loan, you own the CD. Your gain: a small nest egg, plus a record of good credit, she says.

The price: any fees and interest you pay on the loan.

For a long time these and similar loans were a staple, particularly at small or community banks, she says. Now institutions "are taking them off the shelf and dusting them off because they are becoming increasingly relevant," she says.

Paying for money you don't need can be counterproductive -- the point of good credit is to save money -- so reserve this step as a last resort. If you use it, look for low rates, minimal fees and a lender that reports good behavior.


Next
Slide 6 of 7
Previous

 

 

advertisement

Show Bankrate's community sharing policy
Advertiser Disclosure
Advertiser Disclosure

The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where and in what order products appear. This table does not include all companies or all available products.

          Connect with us
Product Rate Change Last week
Balance Transfer Cards 15.77%  0.06 15.71%
Cash Back Cards 16.48%  0.07 16.41%
Low Interest Cards 10.96%  0.10 10.86%
 
Search
advertisement
CARDS WEEKLY NEWSLETTER
Credit cards on a table

Get advice for managing credit cards, building your credit history and improving your credit score. Delivered weekly.

advertisement

Credit Card Blog

Jeanine Skowronski

Citi launches cash-back card

The bank is out with a new cash back credit card that rewards consumers for paying down their balances.  ... Read more

Partner Center
advertisement

Connect with us