The content is accurate at the time of publication and is subject to change.

Unlike traditional personal loans, you won't have access to the money once you're approved for a credit builder loan. Apps like MAGNUM - Credit Builder Account or Self - Credit Builder Account offer small loans designed to help build your credit and give you access to the funds after the loan term ends.

The main purpose of these loans is to help you build a positive payment history with the credit bureaus by making small payments regularly. You will only get access to the money at the end of the loan term. Therefore, credit building loans are best suited for those who have little or no credit history and don't need the loan funds immediately.

Generally, you can apply for loan amounts up to $1,000. If approved, you pay off the loan over 6-24 months and have your payments reported to the credit bureaus. After you make all your payments, you receive the loan funds.

tags : Build Credit

Disclaimer: This editorial content is not provided or commissioned by the banks or credit card issuer(s). Opinions expressed here are the author's alone, not those of the banks or credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the banks or credit card issuer(s). Reasonable efforts are made to present accurate info, however all info is presented without warranty. Consult with the issuing bank of the card or account for terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are accurate as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.