The credit builder loan or guaranteed loan helps build credit quickly and safely, increasing the credit score quickly and reflecting the payment of the accounts in the credit history. Usually the lender or banking institution holds the borrowed money in a savings account, the money is held until the loan is repaid. This is a forced savings program and the payments are reported to the credit bureaus creating a positive credit history month after month.

Building a good credit score requires a history of paying on time. The kind of FICO credit is made up of 5 factors: payment history, amount owed, length of credit history, new credit, and combination of credit accounts; This is the key to build a credit history by practicing good credit habits.

In addition to building a FICO credit history you need at least one credit score that has been open six months or more and at least one bank or creditor reporting lines of credit to credit bureaus in the last six months. The VantageScore credit model is the biggest competitor of FICO, and you can build a credit history faster.

The credit report is the visualization of the entire credit history of the client including the positive and negative lines of credit such as: credit inquiries, debts, repossessions, Bankruptcies, late payments, foreclosures, debt, etc.

By checking the credit report you can check if the account statements are healthy, in addition to the credit score it summarizes the credit situation in three numbers using information from credit reports and at the same time inaccuracies in the credit history can be identified and then the dispute process can begin.