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HOW TO: Hack positive new credit when your score is low.




So what's a Credit Builder Loan anyway?

A credit builder loan is a loan that you take out strictly to build your own positive credit history.


What's the biggest difference between a credit builder loan and the typical loan you would use to make a large purchase?


Most loans actually give you your money up front, as long as you agree to pay them back later with interest.


Credit builder loans do the opposite. Once you agree to the size of your monthly payments, you won't get any of the money until you've fully completed paying off the "loan".


Scary? Maybe, but that new positive credit history is worth it.


If you find a company like SELF that offers no hard credit pulls to sign up, and monthly payments as small as $25 it's a no brainer.


Your process should look something like this:


1) Apply for the loan through a company like SELF, or a bank or credit union.


2) After you're approved for the loan, the company moves the money you were approved for into its own "credit builder" account.


3) From there, you begin making your agreed upon payments for the duration of your payment agreement. The term can go by as fast as six months... or it can even last up to six years.


4) As you make your payments, your lender reports them to major credit bureaus,





How do I know if I can benefit from a SELF Loan?


These credit builder loans, which usually range from $300-$100 in size, usually benefit the people who are not entirely new to building credit, but have scores under the 600 range.


They exist mostly to empower users seeking to create new credit.


For our purposes in real estate, it's a wonderful tool for bringing us closer to generational wealth.


Wondering how you can learn more about building your credit and jumping into homeownership?


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