What Are Secured Bank and Credit Union Loans?

There are many ways to get bad credit help, especially through secured bank or credit union loans.

The first step on the road to get bad credit help is to make sure your credit report is accurate. If your report from Equifax, Experian, and TransUnion has incorrect or incomplete information on it, then you can write a credit report dispute letter and tell them you believe the information is incorrect. Under the Fair Credit Reporting Act (FCRA), the credit reporting agency has 30 days to investigate your letter. The less information you place in such a letter, the better. Remember that if it cannot be proved, the credit reporting agency must remove it.

Another valuable step is to get a secured bank or credit union installment loan. How this works is you go into a local bank or credit union, especially the smaller ones. A good amount to go in with is $1,000 to $2,000. However, you can usually go as low as $250 and even as high as $5,000. Do not panic; you will get this money right back.

Honestly tell the loan officer you need to get bad credit help through a savings-secured loan. Usually you will not need to have a credit check, since you are technically borrowing your own money. Deposit the money into a savings account. You will then get your money right back as the "loan." As you pay the installment each month, the savings account will be unfrozen in an equal amount. This way to get bad credit help is risk-free, as long as you remember to "pay" on time, and costs very little money. Most banks and credit unions charge only a few percent for the interest on a savings-secured loan. For maximum effect, you may want to repeat this several times with multiple banks and credit unions if possible. These accounts will reflect on your credit reports as on-time secured installment loans. At a later date, these same lenders will be more likely to give you unsecured loans, especially if you make a good living. In addition, this method to get bad credit help will greatly improve your credit score, enabling you to get more and more lending opportunities from other banks, credit unions, and finance companies.

It may seem hard to get bad credit help, and though it requires patience and persistence, your credit score can and will improve. Pay all your new obligations on time and make sure old information on your report is accurate, and you will have a better credit future.

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