Credit builder loan calculator
A credit-builder loan builds a payment history: you repay a small loan monthly, and with most of them the money is held in savings and released to you at the end. This works out the monthly payment and what the loan really costs you, then compares the 13 credit-builder loans we track that publish an APR. The APR starts at 6%, the median of those loans.
True cost = interest + fees − dividends earned. Estimate only. Nothing you enter is saved.
Real credit-builder loans, by cost on your loan
Cost of the interest at each lender’s lowest published APR on the amount and term above; fees are as each lender lists them. Some loans only come in certain amounts or terms, so check the lender’s page.
| Lender | APR | Interest on your loan | Fees and terms (from the lender) |
|---|---|---|---|
| AvaSave & Build Credit | 0% | $0 + monthly fee | 0% APR — $5–$10/month Ava membership |
| BrigitBrigit Credit Builder | 0% | $0 + monthly fee | 0% APR — the cost is the $8.99–$15.99/month subscription |
| University Federal Credit Union (UFCU)Credit Builder Loan · Membership required | 3% | $16 | 3% APR, no application fee |
| Securityplus Federal Credit UnionCredit Builder Loan | 3.1% | $17 | |
| BCU (Baxter Credit Union)Credit Builder Loan · Membership required | 4.5% | $25 | 4.5% APR, no application or origination fee |
| Digital Federal Credit Union (DCU)Credit Builder Loan · Open to all via membership | 5% | $27 | 5% APR fixed, no fees listed |
| Patelco Credit UnionScoreUp Credit Builder Loan · Open to all via membership | 5.5% | $30 | 5.5% APR fixed, no fees of any kind |
| Affinity Plus Federal Credit UnionCredit Builder Loan · Open to all ($25 to join) | 6% | $33 | 6% APR fixed, no prepayment penalty |
| Langley Federal Credit UnionLangley Credit Builder Loan | 6.5% | $36 | |
| Republic Bank & Trust CompanyCredit Builder Program · Branch or phone | 7.5–8% | $41 | 7.5%–8% APR plus a $10 processing fee |
| Credit Strong (Austin Capital Bank)Credit Strong Credit Builder Loan | 10.57–15.61% | $58 | About 10.6%–15.6% APR plus a $15–$25 one-time fee |
| Gain Federal Credit UnionGain FCU Credit Builder Loan | 11.99% | $66 | |
| CME Federal Credit UnionCredit Builder Pledge Loan | 12% | $66 |
Ordered by APR, lowest first. Lenders that don’t publish an APR are on the credit-builder loans page. No lender can pay to be listed or ranked higher.
Questions
How much does a credit-builder loan cost?
The cost is the interest plus any fees, minus any dividends the locked savings earn; the loan amount itself comes back to you at the end. At 6% APR (the median of the 13 credit-builder loans we track that publish a rate), a $1,000 loan over 12 months costs about $86.07 a month and about $33 in interest.
Is a 0% APR credit-builder loan free?
Not if it comes with a monthly subscription or membership fee. A $10 a month fee over 24 months is $240, more than the interest on most credit-union builder loans. Enter the monthly fee in the calculator to compare.
Do I get my money back?
With a savings-held credit-builder loan, yes: the lender holds the loan amount in a savings account or CD and releases it when the last payment is made. Some credit unions pay dividends on it while it is locked, which lowers the cost.
Does a credit-builder loan help my credit score?
It can, if the lender reports to all three credit bureaus and you pay on time every month: it adds an installment loan and a record of on-time payments. A late payment is reported too and hurts your score.
Related: credit-builder loans ranked · share-secured loan rates · secured credit cards · free credit roadmap · borrowing against savings (YourBestSavings).