Although many consumers are under the impression that a credit card is the best way to rebuild credit, experts are now stating that an adverse credit secured loan is a much better choice. This type of loan is much less risky and allows the consumer a chance to make regular payments and the bank the freedom from worry since the adverse credit secured loan has enough collateral to cover the expense. By making regular payments on their adverse credit secured loan, consumers have a much better chance of raising their scores, especially over time. While some still hold that credit cars are the way to go, experts are adamanent.”Not really,” says Craig Watts, public relations manager for Fair Isaac Corporation, makers of the FICO score. By developing a consistent payment history on other loans, “Your score will gradually continue increasing until it reaches the ozone layer.”"Every lender is going to take a look at your risk and your credit history, whether a credit union or a bank,” says Jim Hanson, vice president of the Credit Union National Association’s Center for Personal Finance. “But credit unions are known for taking [a] character element more into consideration.”
Related reading: Adverse Credit Secured Loan
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