Home Credit inquiry Best Credit Builder Loans Right Now • Benzinga

Best Credit Builder Loans Right Now • Benzinga



Managing your money can often be a complex process, especially when your credit is low, zero, or bad. Raising your credit score and unlocking your financial future is a multi-level process that should include credit builder loans. Knowing more about these financial instruments and using them wisely can help you overcome money problems, manage your debt, and balance your budget.

What is a credit builder loan?

A credit building loan is a small loan designed to help you improve your credit score. You can borrow a few hundred or a few thousand dollars, make timely payments, and know the lender is reporting to the credit bureaus as often as possible.

The magic of credit building loans

The lender should use a gentle investigation to reduce the impact on your credit, and the underwriting process should be fairly straightforward. Indeed, these loans are designed for those who have little or no credit history. You can also use these loans to rebuild your credit if you have bad credit.

Are payday loans the same as credit builder loans?

Credit building loans are not the same as payday loans. Payday loans send you money before payday – in the hope that a portion of your paycheck will help you pay off the loan.

Loans focused on improving your credit loans help you stop using credit cards for certain expenses, but they also help you build a solid payment history that shows up on your credit report. More than anything, these loans should help you manage your money when you are underemployed, your budget is upside down, or you have other issues that require you to need extra cash.

What to look for in credit builder loans

When looking for a credit builder loan, you are looking for a few things that make the loan easy to understand and manage. Any loan you review must:

Offer a gentle inquiry or no credit check at all. No credit check loan is great, but it is not always available. At the very least, make sure the lender isn’t doing a serious investigation of your credit.

Come from a reputable lender. You can check the reputation and reviews of any lender, making sure that they are both reputable and provide quality customer service.

Provide near instant financing. You want to know that the money you borrow is getting to you as quickly as possible. When you process your loan electronically, you should be able to accept a direct deposit of these funds rather than waiting for a check or going to a bank branch.

Offer low rates and fair terms. Make sure the interest rate is low enough that you can afford the payments. Additionally, review the refund terms. If you think the payments are too high, choose another lender or renegotiate the loan.

Report it to the 3 credit bureaus. One of the most confusing parts of the credit industry is where your financial transactions are reported. There is no way of knowing where a lender or credit card issuer will report your payments. Some use Experiential (OTCMKTS: EXPGY), but others use TransUnion (NYSE: TRU). Even more use Equifax (NYSE: EFX). You need to be sure that the lender reports to the 3 bureaus thereby increasing your credit across the board.

It can be frustrating when you’re working hard to rebuild your credit, but the mortgage lender, auto financier, or apartment complex uses a different credit bureau to get reports.

Who Could Use a Credit Construction Loan?

A credit builder loan is not consigned to the back pages of magazines and coupon mailers. Anyone can use these loans to smoothly and effectively improve their credit. Consider all the cases where a loan like this could come in handy.

Special purchases

Although you only need a few hundred dollars, a credit construction loan can help you with a special purchase. Things happen in life, and you may need to make that extra purchase that will help you or your children move forward. Everything from a special gift to a school trip, tools for work or household comforts can be paid for with a credit construction loan.

Emergency room

Emergencies are coming. Often times, life goes pretty well until you are surprised by some unforeseen circumstance. A quick finance credit loan can help you pay the emergency immediately while improving your credit score.

There are times in life – holidays, vacations, birthdays – when people want a little extra money. Instead of tapping into your credit cards, you can use a credit building loan to access the cash you need and improve your credit score with timely payments.

School expenses

School expenses can add up on a whole range of things, from field trips and marching band fees, to sports and supplies. If you need just one cash injection, look for a credit loan that helps you access the cash you need. A loan like this can be especially helpful for struggling students who are constantly bombarded with expenses.

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Pricing and Features

About Money Lion

MoneyLion is a digital bank that seeks to change the way American banking works. It aims to help the “99% feel 100%” about their finances by using a range of services and products. If you want to avoid traditional banks or prefer digital banks, you can use MoneyLion and its range of options which include:

  • Mobile banking
  • Credit builder plus loans
  • Cash back
  • No hidden costs
  • Financial monitoring tools
  • Buy now, pay later options
  • RoarMoney to get paid sooner
  • Investment accounts
  • MoneyLion crypto accounts
  • Instacash Advances

Review Credit Builder Loans Today

With these tips, you can use credit loans to both improve your credit and help you manage your money. With the judicious use of loans and credit positive financial products, you can come much closer to financial freedom. Come back to Benzinga anytime for more financial tips, tricks and advice.

Frequently Asked Questions

Do banks offer loan builders?


Do banks offer loan builders?


Patton hunnicutt


Some banks offer credit builder loans, but these products usually come from digital banks or virtual payment institutions. Before signing a credit builder loan, check the rates and terms of the loan. You don’t want to pay outrageous rates or lock yourself into impossible repayment terms.

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Is A Credit Builder Loan A Difficult Investigation?


Is A Credit Builder Loan A Difficult Investigation?


Patton hunnicutt


Review the terms of the loan application before proceeding. Some banks and lenders offer a soft survey while others use a rigid survey. Whenever possible, you want to avoid difficult credit inquiries.

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