Once you’re approved for Credit Builder Plus membership, benefiting from your low APR credit builder loan is as easy as 1 - 2 - 3. Credit builder loans are unique in that they are designed primarily to help you build credit. Making small, manageable, on-time payments and getting them reported to the credit bureaus can be an excellent way to help build credit. Here's how the Credit Builder Plus loan works:
- Borrow and save today: Once approved for your membership, you can get a low APR loan up to $1,000 immediately. Based on your finances, we’ll give you some or all of the full funding in your checking account right away. If you qualify for less than full loan amount up front, we’ll save the rest for you in an interest-bearing Credit Reserve Account in your name. When you pay off your loan, you'll get the funds from the Credit Reserve Account to spend on whatever you want!
- Help build credit over time: You’ll make payments on the full loan, and we’ll report your payments to all three credit bureaus — TransUnion, Equifax, and Experian. (Remember, we’re obligated to report late payments to the bureaus too, so pay on time!). We’ll also update your score weekly in the MoneyLion app so you can track your progress.
- Reap the rewards: When your loan is paid off, you will then receive the funds from your Credit Reserve Account! (We’ll send the funds to your active MoneyLion bank account if you have one, or the external checking account you use for your loan payments if you don’t.) If you’ve made all your loan payments on time, you’ll likely have improved your credit, which can help you save big on interest over time. What's more, on your next Credit Builder Plus loan, we should be able to give you more of your funding in your checking account (with less held in reserves). Win-win!