Credit Sources That Establish Credit
In addition to traditional methods that are used to build credit, such as credit cards, and car loans, there are several other types of credit sources that can be used to establish good credit.
Exploring these credit sources and their different benefits, can help you decide which one would work best in helping you establish better credit.
Commercial Banks: offer a wide variety of loans, including personal loans, auto, business, overdraft, credit card, thrift, single, and installment loans, and secured or unsecured loans.
Credit Unions and Finance Companies: offer auto loans, second mortgages on real estate, personal and debt consolidation loans, installment and single payment loans, secured and unsecured.
Life Insurance Companies: will loan you money against the value of a life insurance policy for any purpose.
These amounts, plus interest, will be deducted from the face value of an eventual claim if the loan is not paid back.
Sales Finance Companies: lend money for the purpose of marketing a product that is often a high-ticket item, such as a recreational vehicle, business machinery, or trailer homes.
After the item is sold, the dealer may then sell the contract to a bank or finance company.
Savings and Loans: offer all types of mortgages, home improvement, overdraft, credit card, student, installment, secured, single payment, and car loans.
Second Mortgage Companies: specialize in second mortgage loans on your home.
The total finance costs, including interest charges, can be very high when you tap into a second mortgage of the net equity in your real estate.
Federal Government Loan Programs: offer many loan programs to those who qualify.
With a government loan guarantee, you can get a loan approved at your local bank that might have otherwise been denied, because the government guarantees or insures that the loan will be repaid by them if you default.
The often overlooked credit sources can help you to quickly and efficiently establish good credit over a specific period of time.
For individuals who may not be offered traditional sources of establishing credit, these alternative credit sources may be a gods send.
Exploring these credit sources and their different benefits, can help you decide which one would work best in helping you establish better credit.
Commercial Banks: offer a wide variety of loans, including personal loans, auto, business, overdraft, credit card, thrift, single, and installment loans, and secured or unsecured loans.
Credit Unions and Finance Companies: offer auto loans, second mortgages on real estate, personal and debt consolidation loans, installment and single payment loans, secured and unsecured.
Life Insurance Companies: will loan you money against the value of a life insurance policy for any purpose.
These amounts, plus interest, will be deducted from the face value of an eventual claim if the loan is not paid back.
Sales Finance Companies: lend money for the purpose of marketing a product that is often a high-ticket item, such as a recreational vehicle, business machinery, or trailer homes.
After the item is sold, the dealer may then sell the contract to a bank or finance company.
Savings and Loans: offer all types of mortgages, home improvement, overdraft, credit card, student, installment, secured, single payment, and car loans.
Second Mortgage Companies: specialize in second mortgage loans on your home.
The total finance costs, including interest charges, can be very high when you tap into a second mortgage of the net equity in your real estate.
Federal Government Loan Programs: offer many loan programs to those who qualify.
With a government loan guarantee, you can get a loan approved at your local bank that might have otherwise been denied, because the government guarantees or insures that the loan will be repaid by them if you default.
The often overlooked credit sources can help you to quickly and efficiently establish good credit over a specific period of time.
For individuals who may not be offered traditional sources of establishing credit, these alternative credit sources may be a gods send.
Source...