What are the best credit-builder loans in Virginia?

To get a credit-builder loan, first compare offers from the few companies that have credit-builder loans, then apply for the best one online. Once you're approved, you'll need to make monthly payments to the lender until the end of the loan term. Credit-builder loans don't require a certain credit score for approval, but you will need enough income to make monthly payments.... read full answer

How Can You Get a Credit-Builder Loan

1. Find lenders that offer credit-builder loans.

   Not all lenders offer credit-builder loans. The most popular lenders do not, but some smaller banks and credit unions do.

2. Compare loan offers and choose one that's best for you.

   You'll need to compare loan offers based on important factors like APRs and loan lengths. There are also a few special features to look out for. Some lenders offer a partial interest refund, which means the lender may return some of the interest you pay on the loan in the end.

   The lender could also put your money into an interest-bearing account. This way, you may receive some interest on the money in the savings account over the course of the loan.

3. Apply for the loan.

   You can apply for a credit-builder loan online, by phone or in person. Not all options may be available with all lenders, though.

4. Make monthly payments until you can get the money.

   Once you're approved, you'll need to make monthly payments to the lender until the loan term ends. This could take anywhere from 12 to 24 months, and the lender will report your payments to the credit bureaus each month. After you make all of your monthly payments, you'll get the money from the savings account.

The best credit unions for credit-builder loans are Alltru Credit Union and Digital Federal Credit Union because of their low APRs and affordable monthly payments. Alltru offers 50% of all the interest paid on the loan back, while an account through Digital Federal earns dividends. You must be a member to get a credit-builder loan from either of these credit unions, though.... read full answer

Best Credit Unions for Credit-Builder Loans

Alltru Credit Union

Alltru offers 12-month credit-builder loans of $300 to $1,000 with an APR of 12%. If you make all of your payments on time, the company will refund you half of the interest you paid over the life of the loan.

To get a credit builder loan through Alltru, you must become a member. Memberships are open to people who live in St. Louis, St. Louis County or St. Charles County.

Digital Federal Credit Union

Digital Federal offers 12 to 24-month credit-builder loans of $500 to $3,000 with a fixed APR of 5%. With a credit-builder loan from Digital Federal, the money in your savings account will earn dividends.

Anyone can apply online to become a member of the credit union.

Randolph-Brooks Federal Credit Union (RBFCU)

RBFCU offers credit-builder loans of $300 to $2,500 with loan terms from 6 to 36 months. There are no fees associated with an RBFCU credit-builder loan, but you will have to pay interest on the loan. You’ll receive a portion of that interest back at the end of the loan.

You can apply online to become a member of RBFCU, but you must live in Texas to become a member.

Final Thoughts

If you’re having a hard time getting approved for a credit-builder loan from a credit union, you can also try to get credit-builder loans from banks or online lenders. Plus, good alternatives to credit-builder loans include no credit check personal loans and credit cards for people with no credit. These borrowing options do not require a credit history, and they can help you build credit.

You can apply for a personal loan with bad credit, but most major lenders will not consider a credit score under 600. That's because typically, people with bad credit have a history of not paying their bills on time, or not paying them at all.

There's still hope though, as credit unions may consider applicants with poor credit. Other than those, there are the payday loans, but those come with increadibly high APRs and sometimes absurd fees, so definitely avoid them.... read full answer