• Types of Credit Builder Loans: The types of loans offered by most lenders include Pure Credit Builder Loan, Secured Credit Builder Loan and Unsecured Credit Builder Loan. In the first type, the amount of the loan is locked away in a savings account until the amount is paid. In the second, an amount in one’s savings account is used as security against the loan. The last type works as a normal loan and is easily available.
• Where to Get the Loan: You can get these loans from financial institutions like credit unions. Such institutions offer a variety of loans at low interest rates. Consider researching credit unions in your area and contact an official for more information on the benefits of these loans.
• The Process: A financial institution offering the loan will consider things such as your bank transactions, work contracts, financials, etc. to determine your credit worthiness. The amount of loan offered is usually a small one and lasts for a term of 6 months to one year. Upon the disbursement of the loan, one can start paying regular EMIs as in the case of normal loans.
• How It Works: In this type of loan, the amount if loan offered is deposited into the borrower’s savings account. The amount deposited cannot be accessed till the amount of loan is paid back. So, on repaying the loan, one gets back the money deposited into a savings account. Ask your lender whether there is a provision for prepayment in case you need to access your funds for an emergency.
• What to Consider: When buying a credit builder loan, some things to consider are administrative fee (for setting up an account), amount of money to deposit in a savings account, monthly payment, APR, whether the interest will be refunded, etc. Get in touch with the customer care department of a credit union in your area for these details.
• Managing the Loan: When getting a credit builder loan, it is important to understand its terms and conditions before making a commitment. Pay attention to details like the term of loan, amount of payments to be made, due dates, APR and more. Also, consider the affordability of the loan and be disciplined with paying your installments in full and on time to improve your creditworthiness. 

• Make A Budget: The first step towards saving is to create a budget and stick to it. The purpose of creating a budget is to be watchful of income and expenses. It helps create a limit on the amount spent and to create savings for bill payments, entertainment, etc.
  
• Practice Delayed Gratification: Youngsters need to work on self-control as far as expenses are concerned in order to save. Encourage them to save for a commodity or service instead of buying it on credit.
  
• Keep A Tab On Expenses: Educate youngsters on financial management through personal finance books, online mediums and financial experts. This will help them understand how daily expenses can add up into huge amounts and their impact on savings goals. It will also help to minimize recurring monthly expenses.
  
• Prepare An Emergency Fund: Teach them the importance of starting an emergency fund. Irrespective of how much they earn (from pocket money, summer jobs, part time jobs, etc.), encourage them to put away a certain amount as an emergency fund. They can make use of a money market account, certificates of deposit or a high-interest savings account for doing so.
  
• Adopt Frugal Habits: Set an example for them by spending wisely by limiting expenses on housing, food, transportation, shopping and entertainment. Look for cheaper options wherever possible and tell them the amount you end up saving.
• Avoid Lifestyle Inflation: Help them avoid falling into the trap of getting the latest gadgets and devices, cars, expensive designer wear and so on. Teach them to hang onto what they have for as long as they can, provided there is no depreciation in quality and utility.
  
• Open A Savings Account: Encourage them to deposit a portion of what they earn into their savings account. It instills a sense of discipline every month and lays the foundation for healthy saving habits.
  

• They Require Collateral: Collateral is usually in the form of any financial asset. Secured loans are secured against collateral which can be used by a lender to regain the loan amount in case it is not repaid.
  
• Low Interest Rates: Secured loans are available at lower interest rates as they are pledged against collateral. This makes them a good choice for those on a restricted budget; one can borrow huge amounts as these loans are perceived to be safer in terms of repayment.
• Flexibility: Secured loans are highly flexible as far as repayment options, loan approval and customization options are concerned. Repayment options can be fixed or variable depending on the requirement of a borrower. The loans can be customized to suit the personal and financial needs of a borrower.
• Eligibility: Even though every financial institution has a unique set of requirements for a secured loan, some of them are common. For example, in order to avail a secured loan from a credit union, one must be credit union member, possess assets that match the value of the loan or exceed it, produce proof of identity, proof of residence and more.
• Factors To Consider: When getting a secured loan from a financial institution, consider the type of collateral you are willing to provide, whether the interest rate is fixed or variable, the APR (Annual Percentage Rate) and interest rate, fees charged by the lender, minimum and maximum amount of loan, income requirements and more.
• Preparing For The Loan: Before getting a secured loan, check your credit, get your assets evaluated to know how much you can borrow and suitable monthly repayments. Some financial institutions like credit unions offer online facilities that enable members to apply for a secured loan online.
  
• Defaulting: In case one misses the payments for a secured loan, the financial institution that granted it has the right to repossess the asset that was used as collateral. Every state has different laws regarding this procedure i.e. some require a notice of repossession while other waiver it. If the repossessed asset is not sufficient to compensate for the amount of loan, the borrower will have to cover the difference.

• Membership: In order to avail a secured loan from a credit union, the first step is to become a member. For this, you will have to fill a membership application form and meet the requirements set up by a credit union. Every credit union has its unique set of requirements for qualifying as a member pertaining to place of employment, local community, school district, church and more. For example, Greater Central Texas Federal Credit Union offers membership to anyone who lives, works or worships within Bell County, TX, west of I-35.
• Assess Your Financial Position: Start with assessing your financial position to know how much money you need. For this you should list your assets and their worth and do the same for your liabilities; get the difference to know your net worth. This will help you to know how much you can borrow and repay every month.
• Pursue The Application Process: Once you are a member of the credit union and have assessed your financial position, etc., the next step is to fill the application form for the secured loan. You can fill an online application form on the credit union’s website. You will be required to provide information about your residence, type of loan required, personal information and more.
• Review The Terms & Conditions: Before signing the loan application, go through the terms and conditions stated therein thoroughly. If there is anything you do not understand, always ask an expert at the credit union by calling or sending an email. It is important to understand the actual cost of the secured loan, annual fees, up-front costs, loan term, etc.
  

Listed below are some questions an auto loan buyer should ask before getting one:

• What Is The Interest Rate? The first question to ask is about the rate of interest for the auto loan. Interest rates for auto loans are expressed in the form of a percentage (Annual Percentage Rate). Owing a small amount of auto loans translates into a lower interest rate and vice versa. The aim of getting this information is to look for an auto loan that suits your financial requirements.
• What Is The Amount Of Down Payment Required? Next, ask about the requirement and amount of down payment for the auto loan. The amount of down payment is equivalent to a certain percentage of the vehicle’s selling price. A borrower can either put down the minimum amount of down payment required or more as per the amount he can afford to put down.
• What Would Be The Total Cost Of Loan For You? Get a clear picture of the total amount you have to pay for the vehicle by financing it. The total cost includes the down payment, loan principal and the interest part on the loan. It also includes loan processing fees and other fees if any.
• What Is The Duration Of The Financing Period? Auto loans usually last for 36 to 72 months which directly impacts the amount of interest to be paid. So, depending on your budget, ask for an auto loan that is affordable in terms of interest. Short-term loans cost less as far as interest is concerned whereas long-term loans are easier for those on a budget.