DH and I went to our credit bureau this morning and got their credit builder loan. It's $1000 to be paid back in 12 months. The loan is deposited into our savings account and frozen for a year. We make bi monthy payments of $46. At the end of the year they release the 1000 to us. Interest rate was a little over 6%. They report to all 3 credit bureaus and said it would appear as a "revolving" account on our CR. Basically I guess we're "buying" our credit. It'll cost us a little under $200 to have this loan and build a good history with our CB along with hopefully pushing our FICO up a bit.
Because you dont have access to the actual money until you pay off the loan. I understand the concept but to me its like applying for a Line of Credit and I cant touch it until I pay the lender X amount of money.
I kinda see what you're saying...we didn't find out until we got to the CU that it would be frozen in our savings. I can think of alot of things I could have done today with an extra $1000 but that mentality is part of the reason I'm where I'm at today with my credit. It's a good lesson for DH and I ~ we need to learn to leave money sitting sometimes. I came from a family that would blow and go and never learned how to be financially responsible. So..there that 1k sits and hopefully in 1 years we'll be a little wiser on how it's spent.