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Credit Builder Loans Directory

Build credit while saving money with specialized credit builder loan programs

Credit builder loans are specifically designed to help you establish or rebuild credit. Unlike traditional loans, the money is held in a savings account while you make payments that are reported to credit bureaus.

How Credit Builder Loans Work

  1. You apply for a credit builder loan ($300-$1,000 typical)
  2. Lender approves you and places money in locked savings account
  3. You make monthly payments for 6-24 months
  4. Payments are reported to all three credit bureaus
  5. After final payment, you receive the money plus interest earned
  6. Your credit score improves with consistent on-time payments

Where to Get Credit Builder Loans

Credit Unions

Typical Terms: $500-$1,000, 12-24 months, 8-12% APR

Requirements: Membership required

Best For: Lowest rates and personal service

Community Banks

Typical Terms: $300-$1,500, 12-24 months, 10-16% APR

Requirements: Local residency or account

Best For: Face-to-face service

Self (self.inc)

Typical Terms: $25-$150/month, 12-24 months

Requirements: None, fully online

Best For: Convenience and flexibility

Credit Strong

Typical Terms: $15-$150/month, 12-120 months

Requirements: None, fully online

Best For: Long-term credit building

MoneyLion

Typical Terms: $1,000 loan, 12 months

Requirements: Membership account

Best For: Additional financial tools included

Typical Costs & Fees

  • Interest rates: 6-16% APR
  • Administrative fees: $0-15 monthly or one-time
  • Late payment fees: $5-15
  • Total cost for $1,000 loan: $50-150 in interest and fees

The cost is small compared to the credit score improvement you'll gain.

Expected Credit Score Improvement

  • After 3 months: 10-20 point increase
  • After 6 months: 20-40 point increase
  • After 12 months: 40-60+ point increase
  • After 24 months: 60-100+ point increase

Results vary based on your starting credit profile and payment consistency

Combine Credit Builder Loans with Credit Repair

Maximum credit improvement comes from both removing negative items and adding positive payment history.

Start Credit Repair