Grace Enfield, Content Writer
@grace_enfield
You get the money from a credit-builder loan after the loan term ends and you’ve made all the payments, plus interest. Unlike with other loans, you will not be able to access any of the funds until the credit-builder loan is paid off. In other words, you’re not actually borrowing money with a credit-builder loan.
If you’re looking to get funds right away, you may want to consider getting a personal loan or a credit card. With these options, you’ll be able to borrow money within days of being approved. If a personal loan is right for you, you can estimate your potential rates by using the free pre-qualification tool on WalletHub.
People also ask
Do you get your money back from a credit builder loan?
You get most of your money back from a credit-builder loan, but not all. You receive all money paid on the principal of the loan, but not the interest that you pay along the way, although some lenders may refund a portion of the interest.
The way a credit-builder loan works is the opposite of a traditional loan. The lender puts a certain amount of money into a savings account for you, and then...
read full answer by Gino Rodriguez, WriterHow does a credit-builder loan work?
A credit-builder loan works like a normal loan but in reverse. With a credit-builder loan, the lender puts money into a savings account for you, you make fixed monthly payments totaling the amount in the account plus interest, and then you get the money in the account once you make all the payments. You can see the full step-by-step process of how a credit-builder loan works below.
How a Credit-Builder Loan Works
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How much can I borrow with a credit-builder loan?
You can get between $300 and $3,000 with a credit-builder loan. The main purpose of a credit-builder loan is to add on-time payments to your credit report, so the lender will put the money into a savings account for you, and you'll then have to repay the amount plus interest before getting the money.
To compare the top-ranked offers, check out WalletHub’s picks for the best credit-builder loans.
read full answer by Grace Enfield, Content WriterDid we answer your question?
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