Why Is This Important?
- Avoiding predatory lenders is one of the keys to staying 720 Credit Ready.
- Credit builder loans are without question a predatory loan that you should avoid.
- Paying a company a fixed fee of 15% to hold your money for you is insane — savings accounts pay you 5% for the privilege of holding your money.
- If you have a credit builder loan, CANCEL it and get your money back.
What They Didn't Tell You
- At the end of the so-called loan, the account is marked as paid and closed — this will cause your credit score to drop.
- All positive effects of the account disappear — you would have just taken 2 steps backwards.
- The amount of money you get back will be 15% less than what you paid.
Gross Profits at the Expense of Working Families
- One well-known credit builder loan service claims to have returned $500 Million in funds to credit builders — meaning they've profited close to $100 Million of your money.