You need good credit to secure a loan - but what if you need the loan so you can build or repair your credit?
Building or repairing credit can be a daunting task, but Aberdeen Proving Ground Federal Credit Union (APGFCU) has some practical tips to help.
- Always start with a budget of what you can truly afford for monthly payments
- Open credit with moderate limits, and not to use the entire limit unless paid off monthly
- Don't open too many accounts at one time. The number of inquiries has an adverse impact on credit and is a red flag to lenders
- Pay bills on or before the due date
APGFCU also offers the Credit Builder program to help rebuild credit. The prgram was designed to help members who experienced a change in their financial situation due to things such as job loss, divorce, or medical expenses but who demonstrate a willingness and commitment to repay their loans on time. It offers secured and unsecured loans with reasonable interest rates and manageable repayment periods.
Learn more here.
