MoneyLion Credit Builder Loan Alternatives

If you want to build or improve your credit, MoneyLion offers a range of financial products, including its popular Credit Builder Plus loan. This service can help those seeking to establish a strong credit history, giving you the confidence and resources you need to reach your financial goals.

It’s always smart to explore your options and find the best product that suits your needs. By comparing credit builder loans, you can find the one that aligns with your budget and repayment preferences. To make your search easier, we’ve compiled a list of top credit builder loans like MoneyLion, helping you discover the best fit for your financial journey.

Credit builder loans like MoneyLion

The companies below offer cheaper credit builder loans than MoneyLion and longer repayment terms, which can make a positive impact on your credit score. 

Chime

Best credit-building card

5 _/5

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Why it’s one of the best alternatives to MoneyLion

Chime is a fintech company that offers banking services through The Bancorp Bank N.A. or Stride Bank N.A., Members of the FDIC. It offers checking and savings accounts and Chime’s Builder Card. The card comes with no annual fee or interest, unlike MoneyLion. 

Chime reports your payments to all the major credit agencies. This can help you build a positive credit history if you make on-time payments. To qualify, you’ll need at least $200 of qualifying deposits in a Chime Checking Account.

• Secured credit card without interest or admin fees
• No minimum security deposit

• Must have a Chime Checking Account with at least a $200 direct deposit

Product type	Secured credit card
Admin fee	None
Monthly payment	Varies based on how much you spend
Term length	N/A
When you receive funds	You can withdraw your funds at any time
Credit bureaus reported to	Equifax, Experian, and TransUnion
Unique benefits	No annual fee or interest payments

Self

Best for added benefits

4.8 _/5

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Why it’s one of the best alternatives to MoneyLion

Self was founded in 2015 to help Americans build or rebuild their credit profiles by offering credit-builder loans without a hard credit inquiry. You can choose from four options with different monthly payments and loan amounts. 

Once you’ve made three on-time payments, you may be eligible for the Self Visa® Credit Card that allows you to access a portion of your loan funds. After making payments, you’ll get the full loan amount minus interest and fees.

Most of Self’s loans are cheaper than MoneyLion’s. It may be a solid option if you’re looking to fix your credit but spend less.

• Credit builder loans are available in all 50 states
• Annual percentage rates (APRs) vary by loan amount but are around 16%
• Check your VantageScore 3.0 credit score using Self’s mobile app

Product type	Credit builder loan
Admin fee	$9
Monthly payment	$25 – $150
Term length	24 months
When you receive funds	Once you pay off your credit builder account
Credit bureaus reported to	Equifax, Experian, and TransUnion
Unique benefits	Potential access to Self Visa® Credit card

CreditStrong

Best collection of products

4.6 _/5

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Why it’s one of the best alternatives to MoneyLion

CreditStrong offers two credit-building loan options and a revolving credit line that may boost your credit score. Its Instal product is designed to help you build credit and save. You can choose from three plans with different loan amounts. 

Credit Strong reports payment history to all three major credit agencies. After you finish paying off the loan or close your account, you’ll get the loan funds.

CreditStrong offers much larger loans than MoneyLion—up to $25,000, which the company says might be good for borrowers looking to build personal credit to increase their chances of qualifying for business credit.

• Multiple credit-building products
• Maximum repayment term is 60 months
• Borrow up to $25,000 with CS Max

Product type	Credit builder loan
Admin fee	$15 for Instal product
Monthly payment	$28 – $48
Term length	24, 36, or 48 months for Instal (up to 60 months for CS Max)
When you receive funds	When you close or pay off your loan
Credit bureaus reported to	Equifax, Experian, and TransUnion
Unique benefits	Long repayment terms

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Best credit builder loans

What to know about MoneyLion

MoneyLion offers credit builder loans up to $1,000 with no hard credit inquiry, which won’t damage your credit score and report. When you apply, it reviews your finances to determine your eligibility and how much you can borrow. Unlike some other credit-builder loan products, you get immediate access to a portion of your loan amount before you pay it off.

However, a significant downside is that a MoneyLion Credit Builder Plus membership costs $19.99 per month and only offers a repayment term of 12 months, which is much shorter than several alternatives.

What to consider before applying for a credit builder loan like MoneyLion

Before applying for a credit builder loan, consider your current financial situation and ability to make regular, on-time payments. It’s also important to compare different lenders to find the most favorable terms and lowest fees. Be aware of any upfront costs, and ensure the lender reports to all three major credit bureaus to maximize the impact on your credit score.

How do credit builder loans affect your credit score?

Credit builder loans are designed to help you establish or improve your credit score. When you take out a credit builder loan, the lender reports your payment activity to the three major credit bureaus: Experian, Equifax, and TransUnion. As you make on-time payments each month, these positive actions are recorded on your credit report, which can help boost your credit score over time.

However, missing payments or paying late can have the opposite effect, potentially lowering your score. A credit builder loan works like a stepping stone to better credit if you manage it responsibly.

Is a credit builder loan or a secured credit card better?

Choosing between a credit builder loan and a secured credit card depends on your personal financial situation and goals. A credit builder loan is an excellent way to build credit while also setting aside savings; the loan amount is typically held in a secured account until the end of the loan term.

A secured credit card allows you to build credit through regular use of the card, backed by a cash deposit that serves as your credit limit. If you’re looking for flexibility in everyday spending, a secured credit card might be the better option. But if you prefer a structured approach to building credit with a clear repayment plan, a credit builder loan could be a more suitable choice. Both tools can help you build credit, so it comes down to what fits your lifestyle and financial habits.

Am I eligible for a credit builder loan?

Eligibility for a credit builder loan is generally more accessible compared to traditional loans, but you must meet a few requirements. Most lenders will require you to be at least 18 years old, have a valid Social Security number or Individual Taxpayer Identification Number (ITIN), and provide proof of income or employment.

Some lenders may also perform a soft credit check to gauge your creditworthiness, but most credit builder loans are designed to be available even to those with poor or no credit history. The primary goal of these loans is to help you build credit, so the barriers to eligibility tend to be lower, making them a terrific option if you’re just starting out or rebuilding your credit.

How to choose the best alternative to MoneyLion

When comparing alternatives to MoneyLion, pay special attention to monthly fees, rates (APR), and repayment terms. The APR measures your loan’s cost—including interest and any fees the lender charges. 

Selecting a company that offers a longer repayment term than MoneyLion’s 12 months can help you add positive credit history to your credit profile. However, it may result in paying more interest over the life of the loan.

How to apply for a credit builder loan

Take these steps to apply.

1. Research lenders: Research lenders to find the one that offers terms, fees, and repayment options that best match your needs. Look for lenders that report to all three major credit bureaus to maximize the benefit to your credit score.
2. Gather your information: Before applying, gather the necessary personal information, including your Social Security number or Individual Taxpayer Identification Number (ITIN), proof of income or employment, and valid identification.
3. Submit an application: Visit the lender’s website and fill out the online application form. This will typically include your personal details, income information, and the amount you wish to borrow.
4. Review the loan terms: If your application is approved, review the loan agreement. Before signing, make sure you understand the interest rate, fees, repayment schedule, and any other terms.
5. Sign the loan agreement: Once you’re satisfied with the terms, sign the loan agreement electronically. After signing, the loan amount will be deposited into a secure account, which you won’t have access to until the loan is paid off.
6. Make regular payments: Begin making your monthly payments as agreed. These payments will be reported to the credit bureaus, helping to build or improve your credit score over time.
7. Monitor your credit: Throughout the loan term, monitor your credit report to ensure that your payments are being reported accurately and to track the progress of your credit score improvement.

By following these steps, you can apply for a credit builder loan and take proactive steps toward improving your credit.

FAQ

What is a credit builder loan?

A credit builder loan is a type of loan designed to help individuals build or improve their credit scores. Unlike traditional loans, you don’t get the loan funds upfront with most credit builder loans.

Instead, you make monthly payments, and once you pay off the loan, you get the funds minus any fees and interest. This process helps demonstrate your ability to make regular, on-time payments, which are reported to the credit bureaus and can improve your credit score over time.

What are the benefits of using a credit builder loan instead of a traditional loan?

Credit builder loans can help those with no credit or poor credit establish a positive credit history. The benefits include lower credit score requirements for approval, regular reporting to credit bureaus, and the opportunity to save money while building credit. Traditional loans often require good credit for approval and provide funds upfront, which may not be ideal for those looking to improve their credit score.

How long does it take to see an improvement in my credit score with a credit builder loan?

The time it takes to see an improvement in your credit score with a credit builder loan can vary depending on several factors, including your starting credit score, the loan term, and your payment history. You may start to see improvements in your credit scores within a few months of making consistent, on-time payments. However, significant improvements may take longer, depending on your overall credit profile.

Can I pay off a credit builder loan early?

Yes, many credit builder loans allow you to pay off the loan early without penalty. However, it’s important to check the specific terms and conditions of your loan agreement. Paying off the loan early can help you access your savings sooner, but it may reduce the number of positive payment reports sent to the credit bureaus, which could affect the overall benefit to your credit score.

Recap of the best credit builder loans like MoneyLion