Having a good credit score is very important in order to secure loans of different kinds and avail low interest rates. However, not having a credit history or a bad credit score owing to financial blunders or never having owned a credit card are some of the ways in which you might fail to achieve a good credit score. Savings loan is a great way to improve your credit score and thereby avail all the other benefits associated with it.
The meaning of savings loan
In Canada there are a lot of times when people are not given loans or credit cards other than secured credit if that person does not have a good credit score. A great way to improve this credit score is by applying for a savings loan. Savings loan is a situation in which a stipulated payment amount is set towards an account in your name. You need to make an affordable payment to this account based on a particular schedule every month and this activity gets reported to the bureau of credit, who increase your credit score based on each of the monthly payments. At the end of the scheduled time period you also end up with a considerable amount of money that you had saved.