Credit Builder Loans Like Seedfi

Credit builder loans can help you to establish credit history by making on-time installment payments to a lender. SeedFi offers small lines of credit up to $500 to help you build a positive credit history. You pay no interest, and payments are reported to each of the three major credit bureaus.

SeedFi was acquired by Intuit in early 2023 and no longer offers personal loans, but the Credit Builder loan program is still available through Credit Karma. If you’re interested in credit builder loans like SeedFi, we’ve evaluated several popular companies to help you choose the best alternative to SeedFi. 

Credit builder loans like Seedfi

SeedFi is one of several companies that offer credit builder loans. The companies that we’ve profiled below share both similarities and differences in terms of how their loans work, what they cost, and what kind of repayment terms you can expect. 

The best credit builder loan for you is ultimately the one that allows you to build credit at a pace that works for you and is affordable for your budget. You may also appreciate credit builder loans that offer special perks or benefits outside of improving your credit scores. 

Chime

Best for a Credit-Building Card

5 _/5

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Why we picked it

In addition to credit builder loans like SeedFi, you might consider secured credit cards as well. Chime’s credit builder product is just that: a secured Visa credit card that allows you to build credit history using everyday purchases. 

It works like this. You open a Chime checking account if you don’t have one yet and set up qualifying direct deposits of $200 or more. You can then move money from your Chime account to your credit builder card and use it to make purchases. 

Each month, you’ll pay back your statement balance and Chime reports those payments to the three major credit bureaus. There are no fees and you’ll pay no interest either. Chime won’t check your credit when you apply, so this might work for you if you have bad credit or no credit. 

Loan details

Trustpilot score (as of Aug. 2024)	2.3 (out of 9,357 reviews)
Product type	Secured credit card
Admin fee	$0
Monthly payment	Statement balance
Term length	N/A
When funds are received	N/A
Credit score	Equifax, Experian, TransUnion
Credit score	Spend while you build credit history with a Chime; secured Visa Credit Card; no fees and no interest

What makes it a good option for a loan like SeedFi?

If you already have a checking account with Chime or plan to open one, then getting a Chime Secured Visa Credit Card could be a logical step. You can decide how much you’d like your credit limit to be, based on how much you keep in your Chime account. 

You’ll need to pay your statement balance in full each month, but you’re not paying interest on purchases. And since this isn’t a loan, you can continue building credit for as long as you’d like. 

Self

Best for Added Benefits

4.8 _/5

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Why we picked it

Self Financial offers credit builder loans to people who are seeking to establish or build credit, including those with bad credit. To get started, you would choose your loan plan and pay the non-refundable administrative fee. You’d then pay your loan back in installments over a period of 24 months. 

Loan funds are held in a certificate of deposit account at an FDIC-member bank. The money in the account is turned over to you, less fees and interest due, once your loan is paid in full. There are four plans to choose from: 

• Small Builder: Pay $25/month and get back $520
• Medium Builder: Pay $35/month and get back $724
• Large Builder: Pay $48/month and get back $992
• X-Large Builder: Pay $150/month and get back $3,076

All four require you to pay an administrative fee and all four have 24-month repayment terms. Each one also charges interest, with annual percentage rates ranging from 15.72% to 15.97%, as of September 2023. There’s no hard credit pull required for a Self credit builder loan.

Loan details

Trustpilot score (as of Aug. 2024)	2.1 (out of 143 reviews)
Product type	Loan in a bank-held CD account
Admin fee	$9
Monthly payment	$25 – $150
Term length	24 months
When funds are received	At the end of the loan term
Credit bureaus reported to	Equifax, Experian, TransUnion
Unique benefits	Free access to VantageScore 3.0 credit scores; access to some of the funds you’ve paid in with a Self Visa® Credit Card

What makes it a good option for a loan like SeedFi?

Self Credit Builder loans could be a good fit if you’d like to save more than the $500 limit set by SeedFi. You can also potentially get access to some of the money you pay faster with the Self Visa® Credit Card. 

On the other hand, Self charges fees and interest, whereas SeedFi doesn’t. So that’s something to keep in mind if you’re hoping to build credit without spending any money. 

CreditStrong

Best Collection of Products

4.6 _/5

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Why we picked it

CreditStrong offers several products to help you build credit from scratch or rebuild a poor credit history. You can choose from a revolving line of credit, which yields the best value, or two loan options. Here’s a quick overview of how they work. 

• Revolv is a $1,000 revolving credit line that requires no monthly payment and is designed to help you improve your credit utilization. 
• Instal loans start at $1,000 and they allow you to build credit—and savings—with low, fixed payments that you can make over a period of 24 to 48 months. 
• CS Max loans range from $2,500 to $25,000 and they’re designed to demonstrate to lenders that you can handle larger credit amounts. 

The Revolv product requires a $99 annual subscription fee, while the installment loans charge upfront administrative fees of $15 to $25. You’ll pay no interest for Revolv but Instal and CS Max loans are subject to interest charges. 

Loan details

Trustpilot score (as of Aug. 2024)	2.0 (out of 48 reviews)
Product type	Installment loan linked to a savings account
Admin fee	$15 – $25
Monthly payment	$0 – $449
Term length	24 – 60 months for loans; unlimited for revolving credit
When funds are received	At the end of the loan term
Credit bureaus reported to	Equifax, Experian, TransUnion
Unique benefits	Multiple credit builder loan options, including revolving credit lines; personal and business credit builder loans are available

What makes it a good option for a loan like SeedFi?

CreditStrong might be suitable for people who either want access to a revolving credit line with no interest, or who are looking for a larger installment loan option to build credit. You may also look into CreditStrong if you’re specifically interested in building business credit. 

It’s important to consider what you’ll pay in fees and interest, however. Some of the other credit builder loans like SeedFi that are included here could end up being less expensive.

Kovo

Best for a Small Credit-Building Plan

4.6 _/5

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Why we picked it

Kovo is not a traditional loan, but it can help you to build credit through installment payments. When you create a Kovo account and purchase a course, you can opt to pay for it in installments of $10 per month for 24 months. Those payments are then reported to the major credit bureaus as well as Innovis. 

So what can you learn? Kovo courses are designed to help you hit your goals and center on topics like:

• Entrepreneurship
• Job interview skills
• Stress management and time management
• Personal branding
• Programming

There are no fees and no interest charges. You get the benefit of learning new skills as you build your credit history. And you have an opportunity to earn up to 1% back on eligible payment plans. 

Loan details

Trustpilot score (as of Aug. 2024)	4.9 (out of 521 reviews)
Product type	Installment payment plan for Kovo courses
Admin fee	$0
Monthly payment	$10
Term length	24 months
When funds are received	N/A
Credit bureaus reported to	Equifax, Experian, TransUnion, Innovis
Unique benefits	Earn rewards and learn new skills as you build credit

What makes it a good option for a loan like SeedFi?

Kovo might appeal to people who don’t necessarily need a loan but still want a pathway for building credit. Being able to earn some valuable skills along the way is a nice added benefit, as is the lack of fees and interest charges. 

Of course, if you’d like to build savings instead, then you might consider SeedFi or one of the credit builder alternatives to SeedFi we’ve covered here. 

Ask the expert

Erin Kinkade

CFP®

Do your research to make sure the lender you select for a credit builder loan is a reputable company. Look for a company that will report to all three credit bureaus. And, understand the fees. Administrative fees are understandable, but exorbitant fees should be avoided.

How SeedFi credit builder loans work

SeedFi loans combine a line of credit with a savings element to help you build credit. To use one of these loans, you’d first need to create an account with Credit Karma if you don’t have one already. Once you’ve done that, here are the next steps.

1. Tell Credit Karma Credit Builder when you get paid.
2. Choose an amount to save from each paycheck that’s at least $10. 
3. When you get paid, that amount is drawn from your line of credit and deposited into a locked savings account.
4. You pay that same amount back to Credit Builder with no interest. 
5. Each payment is reported to Equifax, Experian, and TransUnion. 

When you’ve paid back $500 in savings to Credit Builder, that amount is transferred to an unlocked savings account. You can then use that money in any way you’d like. You can open new lines of credit over and over to continue building credit history and savings. 

How to choose the best credit builder loan like SeedFi

Credit builder loans can help you get on track with improving your credit scores, but it’s always a good idea to do your research. The lender that works best for someone else might not be the best one for you. 

Before choosing a borrowing option, think about what you need or want most. For example, if you’re more interested in building savings, then you might consider a CD-linked loan. But if you’d like to be able to spend, then you may want a loan option that includes access to a secured credit card.

As you navigate the list of alternatives, here are a few things to consider. 

• Program structure. Credit builder loans don’t all work the same way, so it’s important to understand exactly how different programs work.
• Interest and fees. SeedFi charges no interest for credit builder loans, but other lenders may do so. They can also charge fees for a credit building loan.
• Credit reporting. Ideally, any credit builder loan you get reports payments to all three of the major credit bureaus. But if a lender reports to one or two only, that’s something you’d like to know beforehand. 
• Term length. Credit builder loans are typically shorter-term loans, though that isn’t always true. It’s a good idea to check the term length and monthly payment requirements. 
• Benefits. Some lenders may offer special incentives to encourage you to choose their credit builder loan over another. For example, if you get a credit builder loan with SeedFi, you’ll also have access to free credit monitoring through Credit Karma. 
• Reputation. Lastly, consider a lender’s overall reputation and legitimacy. Reading reviews from past and current customers can give you a better idea of what people do or don’t like about a particular company. 

If you follow a credit builder loan program, your credit credit score should increase and also reflect positively on your credit report.

Erin Kinkade

CFP®

As your credit improves, you can consider other ways to build credit. That can include researching the best personal loan companies that offer unsecured loans online.

FAQ

What is similar to SeedFi?

Several companies offer credit builder loans similar to SeedFi. Some of the notable alternatives include:

• Self: Known for its variety of credit builder loan plans, ranging from small to extra-large loan amounts, all held in a certificate of deposit.
• CreditStrong: Offers a range of products, including installment loans and a revolving credit line, designed to build credit.
• Chime: Provides a secured Visa credit card that helps build credit through everyday purchases and timely payments.

What is the best credit builder?

The best credit builder depends on your specific needs:

• Chime: Best for those looking for a credit-building card.
• Self: Best for added benefits and flexibility in choosing loan plans.
• CreditStrong: Best for its collection of diverse products, including both installment loans and revolving credit lines.
• Kovo: Best for a small credit-building plan, especially for those interested in learning new skills while building credit.

Who took over SeedFi loans?

SeedFi was acquired by Intuit in early 2023. While SeedFi no longer offers personal loans, its Credit Builder loan program continues to be available through Credit Karma.

What is the number one app to borrow money?

The best app to borrow money can vary based on your needs, but Chime is highly regarded for its credit-building card, which is part of a broader financial ecosystem. It’s particularly beneficial for those looking to build credit without incurring interest or fees.

Recap of the best credit building alternatives to SeedFi