What @Anonymous Said. Since you already have 2 loans, you don't need one.
A Credit Builder Loan, and you can Google the topic to get on this, is precisely that. A financial vehicle by which you aim to build, rebuild, build out your credit. Typically it's a smaller balance loan, $500-1000 something and it's secured by your cash deposit with the FI.
Why On Earth? We may want to do it to increase our credit mix, adding a Loan TL to our CC, Store Card, TL's. I'm sure you already know this. I'm just delineating it. FICO and the CB's like us to show both a loan and CC's.
Sometimes we may do a small SSL as they're called at CU's. In CU's, you have a Share. At banks, another term. Secured Savings Loan. Secured Share Loan. They're all typically under Personal Loans. We may do a small loan at a FI where we want to deepen our relationship with them and have a loan history specifically with them for leveraging that deeper relationship in the future. 🙏🏻😇😇😇 Some of those benefits with big banks may not be there so much or as meaningful beyond our FICO as they once were 20, 30 years ago. Still, if I were planning to get a mortgage at a CU 2, 3 years from now, I'd do an SSL there for $500 for 12-36 months beforehand. It thickens my Credit Profile specifically with them. For holding up about $50 after the first 30 days if that, dear LORD, it'd be worth it to me for what that could do. 🙏🏻🤞🏻
I hope that helps a bit. 🙏🏻
