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Self is helping thousands of people begin their financial journey with a credit builder account. We understand that building a financial foundation is a daunting task for most people, so we're dedicated to building a product that will help our customers move two steps in the right direction.

If you're new to credit, or trying to rebuild your credit but struggling to gain access to the right tools, a credit builder loan might be just the ticket.

Here's How SELF Works's

  1. You apply for and open a credit builder loan at a bank, credit union or through Self. A credit union may also call this type of loan a share secured loan (being secured by your savings account).

  2. When your application is granted, the financial institution moves the loan proceeds you were approved for into a separate account, usually a savings account or certificate of deposit (CD). The loan amount tends to be between $300 and $1,000, though some banks offer credit builder loans as high as $2,500.

  3. You then begin making your monthly payments for the predetermined amount of time (the loan term). The loan term can be as short as six months or as long as six years.

  4. The bank, credit union or service provider reports your monthly payment activity to one or more of the three major credit bureaus (Experian, Equifax, Transunion). A credit bureau generates a credit rating (also known as a credit score, based on your history of using credit).

  5. Once the loan balance reaches zero, the service provider unlocks the CD or savings account and returns the total money the borrower paid, minus any interest and administrative fees.

Who should get a credit builder loan

The people most likely to benefit from a credit builder loan are those with a low credit 

Companies Who Offer Secured Loans



Dupage Credit Union

Talk about an excellent way to build your credit.. These guys have everything that you need!

Unlike a traditional loan, the funds from a credit builder loan—up to $2,500—will be deposited into your secured savings account with up to 24 months to pay it back and build your credit history.

Capital Good Fund


This  is an online, nonprofit lender that makes installment loans to borrowers with low income and no credit history or bad credit. Its borrowers typically need cash for emergencies or to help bridge an income gap during a difficult time.

With rates that don’t exceed 24%, Capital Good Fund personal loans are much cheaper than payday loans, but are still a costly option for emergency expenses. The loans are currently available to consumers in five states: Delaware, Florida, Illinois, Massachusetts and Rhode Island. The lender plans to expand to Texas in 2020, according to founder and CEO Andy Posner.

Amount: $300 to $500

APR: 10%

Repayment term: Monthly payments over one year

How to Build Credit Fast

Building credit is a long-term investment and there's no single thing you can do to make that happen immediately.


Credit history will gradually build as you continually increase the number of on-time payments. Even improving credit takes time, where the fastest change of bringing all accounts current, can take 30—60 days to reflect on your credit report. The best way to build and improve credit is to do so steadily, by paying all your bills on time every month, managing your credit utilization ratio and ensuring you use a mix of credit types wisely.

RBFCU ( Randolph-Brooks Federal Credit Union)

  • A Credit Builder Loan does not provide immediate funds for member use. Instead, the funds are secured in a savings account until the loan term is complete.

  • You can request an amount between $300 and $2,500 for your Credit Builder Loan. Your loan term can be between six and 36 months.

  • Members ask if they can pay off their Credit Builder Loan early. However, regularly scheduled monthly payments are important to building credit. If you secure a Credit Builder Loan, you should plan to make regular payments through the loan’s scheduled completion date.

Secured Loan ( Credit-Builder Loan)


Banks and credit unions understand it's not always easy to build credit when you're starting out with little credit history or negative marks on your credit report. Some offer credit-builder loans, or passbook/CD loans — low-risk loans designed specifically to help you build credit. They work much the same way a secured credit card works; for a credit-builder loan, you deposit a certain amount into an interest-bearing bank account and then borrow against that amount. The deposit is your collateral, and you'll pay interest at a higher rate than your deposit earns it.For passbook or CD loans, some banks allow you to use an existing bank account or certificate of deposit as collateral for the loan. Before you take the loan, confirm with the lender that your on-time payments will appear on your credit report.