Once you’re approved for Credit Builder Plus membership, benefiting from your 5.99% 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 5.99% APR loan immediately. Based on your finances, we’ll give you some or all of the $500 funding in your checking account right away. If you qualify for less than $500 up front, we’ll save the rest for you in an interest-bearing Credit Reserve Account in your name until you pay off your $500 loan. This is a great way to help save money while you help build your credit. When you pay off your loan, we'll transfer the Credit Reserve Account funding to your checking account for you to spend on whatever you want!
- Help build credit over time: You’ll make payments on the full $500 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 $500 loan is paid off, you will then receive the funds from your Credit Reserve Account. 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 $500 funding in your checking account (with less held in reserves). Win-win!