Grace Enfield, Content Writer
A credit-builder loan will raise your credit score up to 60 points in the first few months, according to Self and MoneyLion, two notable credit-builder loan providers. Research from the Consumer Financial Protection Bureau also found that a credit-builder loan raises your score the most if you don’t have existing debt.
You can use WalletHub’s free credit score simulator to estimate how your credit score in particular will change. The exact increase in points varies depending on factors like where your score is to begin with, the length of the loan and if you pay on time. New credit users may have a credit score of 630 to 650 by the end of the loan period, though.
If you think a credit-builder loan is right for you, check out the top ranked credit-builder loan options on WalletHub.
People also ask
Did we answer your question?