Build is a financial technology company that believes everyone should have the opportunity to improve their financial health. We’ve worked hard to provide you credit-building products like the Build Credit Builder Loan, which will allow you to add positive credit history to your credit report while also building personal savings. In addition, we give you access to articles and content that further educate you about personal finances.
A credit builder loan is a secured installment loan that is designed to help you demonstrate your creditworthiness while accumulating savings for a rainy day. When you make regular payments on your credit builder loan, the lender reports your positive credit history to the credit bureaus, which is a key ingredient for boosting your credit score. One thing to know about credit builder loans is that, unlike other loans, they provide access to the money upon fully paying the loan. In other words, at the end of the loan period you will receive your money and the benefit of having all credit bureaus notified of your positive credit history.
You pick a Build Credit Builder loan that works for you, apply, and get approved. Then your account is established and you will have aBuild Credit Builder loan. As you make monthly payments on that loan, that activity is reported to the credit bureaus at the beginning of each month, which adds to your positive credit history. Keeping up with payments on your Build Credit Builder loan is important because it shows your ability to make timely payments on a credit account. The most commonly used credit scores, such as FICO and VantageScore consider this timely repayment history as the biggest determinant of your credit score. When you finish making your payments, you receive your money and your credit score will reflect your positive credit history.
This varies based on your individual circumstances. The lender will report your positive payment history to the credit bureaus each month, however the time it takes to affect your credit score varies based on other factors like your history with credit, other outstanding debt, and your payment history. We have seen through the Consumer Finance Protection Bureau’s 1 study of credit builder loans that credit scores of those without existing debt can increase by an average of 60 points 1 over the course of 6 to 24 months.
Yes. We charge a one-time, non-refundable account opening fee of $9.
No. We do not check your credit score when you apply for a Build Credit Builder Loan.
To maximize the impact on your credit score, your payment history on yourBuild Credit Builder Loan will be reported to all three credit bureaus: Equifax, Experian, and Transunion.
Although similar in concept, Build’s Credit Builder Loan is an installment loan, not a revolving credit product. Secured credit cards are credit cards that typically require an upfront deposit. Nerd wallet has a great explanation on secured credit cards here.
Yes. You can pay off your Build Credit Builder Loan early and close it at any time, but keep in mind that it could reduce the benefit you experience to your credit score. Your payment history is the single most important factor in determining your credit score, and paying off your loan early shortens your payment history.
This is an exciting moment. When you have finished making payments on yourBuild Credit Builder Loan, the lender will report the loan as paid in-full and return your accumulated savings less interest and fees.