Credit Builder Loans That Give You Money Upfront

Credit builder loans can help with establishing or re-establishing credit history. Typically, instead of getting the money when you’re approved, the lender holds the loan funds in a secure account. You repay the loan in installments, with the lender reporting the payments to the credit bureaus.

Only once your loan amount is repaid in full does the lender turn over the loan proceeds to you. However, certain credit builder loans give you money upfront. If you’d like to build credit and get access to immediate cash, here are some of your best options.

Company	Product	Funding
MoneyLion	Credit builder loan	Up to $1,000
Chime	Secured credit card	No set limit
Oportun	Personal loan	$300 – $10,000
EarnIn	Cash advance	Up to $750
Varo	Secured credit card	Up to $10,000 per billing cycle

Credit builder loans that give you money upfront

Some lenders offer credit builder loans with an upfront cash advance. The specifics can vary by lender, but these loans may offer you access to small amounts of money with no credit check. You’ll repay the loan back over time, typically with interest, and the lender reports your payment history to the credit bureaus. 

Banks, credit unions, and fintech companies can offer credit builder loans, but options that give you money right away can be difficult to find. Credit builder loans that pay money upfront can present a greater risk to lenders if the borrower doesn’t make good on repayment. 

Still, options are available if you’d like to get a cash advance to build credit. We’ve selected five of the best credit builder loans that give you money upfront. 

MoneyLion Credit Builder Plus

3.7 _/5

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Why we picked it

MoneyLion Credit Builder Plus allows you to borrow up to $1,000 with no hard credit check. You can get some of the money upfront; the amount depends on your creditworthiness and MoneyLion’s underwriting standards. The lender will hold the remaining amount in a Credit Reserve Account. 

MoneyLion reports your account activity to all three credit bureaus. You’ll repay the loan in 12 monthly installments, with interest, and you can set up automatic payments so you never have to worry about missing a due date. Once you pay off your loan, MoneyLion turns over the rest of the funds in your Reserve account.

In addition to credit builder loans, you can take advantage of 0% APR cash advances. MoneyLion allows you to get up to $700 each pay period with Instacash Advances if you’re a Credit Builder Plus member. You’ll pay $19.99 per month for membership. 

• Build or rebuild credit with no hard credit check. 
• Monthly reporting to all three credit bureaus. 
• Get access to 0% APR cash advances.

Amount of cash upfront	Varies, based on creditworthiness
Loan amounts	Up to $1,000
Terms	12 months
Rates	5.99% – 29.99% APR
Fees	$19.99 monthly membership fee
Returned money	Funds remaining in your Credit Reserve Account

Chime Credit Builder

Best for a Credit-Building Card

5 _/5

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Why we picked it

Chime Credit Builder is a secured credit card, not a loan. Unlike other secured credit cards, no minimum security deposit is required. No annual fee or interest charges apply either.

To access Credit Builder, you must open a Chime Checking Account and set up $200 or more in qualifying direct deposits. No hard credit pull is required to apply, and there’s no set spending limit. You decide how much money to move from your Chime Checking Account to fund your secured credit limit each month. 

Chime reports payment activity to all three of the credit bureaus. Since there’s no set spending limit, you need have to worry about a high credit utilization ratio hurting your score. Credit utilization reflects the percentage of your credit limit you’re using at any given time. 

• No minimum security deposit, annual fee, or interest charges
• No hard credit pull and no set spending limit for flexible use
• Reports to all three credit bureaus without affecting credit utilization ratio

Amount of cash upfront	User-determined
Loan amounts	No set limit
Rates	None
Fees	None

Oportun

4.4 _/5

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Why we picked it

Oportun is a direct lender that offers loans of up to $10,000 to borrowers with poor credit. If you’re approved, Oportun will release the full loan amount to you with nothing in reserve. You can then use the money as you see fit. 

You’ll pay interest to borrow. Compared to several credit building cash advance options, rates are higher with Oportun. An origination fee also applies, which can add to your overall loan costs. 

Making on-time payments to your loan can help you to build credit history. You can take up to 46 months to repay your loan, depending on where you live. If you reside in California, you also have the option of using a vehicle you own to secure a larger loan of up to $18,500. 

• Borrow up to $10,000. 
• No prepayment penalties.
• Accepts borrowers with poor or no credit.

Amount of cash upfront	Up to $500
Loan amounts	$300 – $10,000
Terms	6 – 46 months
Rates	12% – 36% APR
Fees	Origination fee; late fee

EarnIn

Best Cash Advance

5.0 _/5

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Why we picked it

EarnIn is a personal finance app that makes it easy to spend, save, and borrow all in one place. With the Cash Out product, you can receive up to $100 per day and $750 per pay period within minutes. You won’t pay interest charges or undergo a credit check to apply.

Once approved for an advance, you can transfer the money to a linked external bank account. If you’d like to get your funds instantly, you’ll pay a small processing fee to make the transfer.

You’ll pay back your advance at a future settlement date, typically your next payday. If you’re unable to settle your advance in full at that time, you won’t be charged a late fee.

• Up to $750 per pay period
• No interest, membership fees, or credit checks
• Funds available in minutes 

Amount of cash upfront	Up to $750
Terms	Settle on your next payday
Rates	None
Fees	$1.99 – $4.99

 

Varo Believe

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Why we picked it

Varo Believe works similarly to Chime’s Credit Builder product: It’s a secured credit card rather than a loan. You can choose your credit limit; no minimum security deposit is required. Varo doesn’t check your credit for approval, either. 

You transfer cash to your Believe Account, which you can then spend as you’d like. Varo covers those purchases with the SafePay feature and reports your payment history to all three major credit bureaus. The account offers a $1,000 daily cash advance limit and a $2,500 purchase limit. 

You’ll need a Varo Bank Account and $500 or more in eligible direct deposits to qualify. If you’re not quite ready for a Believe account, you could get cash advances from Varo ranging from $20 to $250. You must repay the cash advance within 30 days but won’t pay interest charges.

• Build credit with no fees or interest. 
• Choose your own spending limit.
• No credit check required to apply. 

Amount of cash upfront	User-determined
Loan amounts	$1,000 per day for cash advances; $2,500 per day for purchases; $10,000 per billing cycle
Rates	None
Fees	None

How to choose a credit builder loan for instant access

If you’re considering a credit builder loan that offers instant access to cash, it’s wise to shop around—specifically to read the fine print so you know:

• How much cash you can get
• What you’ll pay in fees or interest
• What the repayment schedule will look like

It’s also helpful to know which credit bureaus the lender reports to. Equifax, Experian, and TransUnion can collect information about credit builder loans, but lenders may not report your account history to all three bureaus. 

Our expert’s take

Andrew Steger

CFP®

When considering a credit builder option, remember: You’re dealing with debt and repayment liabilities. It’s vital to look at interest rates, duration, and give whether each aligns with your goal of improving or building your credit score. It would be wise to establish a budget to see how the payment affects your cash flow and then weigh whether your situation dictates the need for cash today. Do you have time to consider alternatives?  

Are credit builder loans that give you money a good idea?

Getting a credit builder loan that gives you money right away can have pros and cons. It’s important to weigh both sides to understand how a credit builder loan with upfront money can help or harm you. 

Here’s how they compare.

Pros

• Immediate access to funds without waiting until the loan repayment period ends. 

• Build a positive credit history by making on-time payments.

• Certain cash advance credit builder loans don’t charge interest or fees.

Cons

• Loan amounts may be smaller than credit builder loans that don’t give you money upfront. 

• Paying late or missing a payment could hurt your efforts to build good credit.

• Credit builder loans that give you money upfront and charge interest may carry higher APRs than traditional loans. 

Credit builder loans that offer money upfront could be best for borrowers who have a one-time need for smaller amounts of cash and are committed to making their monthly payments as scheduled. When used responsibly, these loans can be a stepping stone for establishing credit and qualifying for other types of loans. 

Our expert’s take

Andrew Steger

CFP®

When using instant cash advances, borrowers must assess the interest rate and repayment period, which are typically higher and shorter, respectively, for cash advances. Don’t fall into a ‘’debt trap.” Due to the high cost of cash advances, borrowers may find themselves in a difficult position of having to take out additional loans to cover payments. Moreover, defaulting on repayment may harm the credit you’re working so hard to build.  

Are credit builder loans worth it?

When deciding whether a credit builder loan is worth it, it’s important to weigh the cost against the convenience. A credit builder loan that gives you money upfront could help you solve a temporary financial gap, but consider what you’ll pay for it in the long run. 

Say, for instance, you decide to apply for a loan with MoneyLion. You’re approved for the full $1,000 loan amount and get half that upfront. Here’s what your loan payments and interest might look like, assuming the highest and lowest APRs offered. 

	Loan APR 5.99%	Loan APR 29.99%
Monthly payment	$86	$97
Total interest	$32.74	$169.79
Difference	The higher APR would cost you $11 more per month and $137.05 more in interest.

Calculating your payments and total interest charges beforehand can help you to decide whether a credit builder cash advance makes financial sense. If not, you might need to consider other borrowing options, a few of which we’ll discuss below. 

Our expert advises

Andrew Steger

CFP®

I’d only recommend credit builder loans and cash advances when all other options are exhausted or unavailable. But if one is necessary and used appropriately, it can be a wonderful instrument to make significant gains toward a much healthier financial situation. Building credit with one of these options can lead to larger loans with lower interest rates for purchases such as a vehicle and even a home.

How to use the funds from a credit builder loan cash advance

Before you decide to apply for a credit builder loan with a cash advance, consider how you’ll use the money. 

For instance, credit builder loan cash advances could be useful for emergencies. If your dog gets sick and needs an overnight stay at the vet, you could use loan proceeds to pay the bill. A credit builder loan that gives you money upfront might be easier to qualify for than the vet’s in-house financing option or traditional personal loans.

You could also use a credit builder loan advance to pay for everyday expenses, such as groceries or gas. Or you might use the loan proceeds to cover the bills when money is tight. It’s crucial to remember you must repay the cash advance, and failing to do so can hurt your credit instead of helping it. 

Alternatives if you need cash and have poor credit

Poor credit can be a barrier to borrowing, but you might consider the following options in addition to credit builder loan cash advances when you need money.

The best ways to get cash when you have poor credit can include:

• Selling items you no longer use or need on Facebook Marketplace or to a local pawn shop. 
• Asking friends and family for a small loan. 
• Using an app such as Earnin or Albert to get a small cash advance against your next paycheck. 

You could also explore personal loans for bad credit. These loans can put cash in your hands even when your credit is less than perfect. However, you’ll likely pay much higher interest rates to borrow. If you apply for a secured loan, you’ll need something of value to offer as collateral. 

Any other alternatives?

Andrew Steger

CFP®

Peer-to-peer lending websites, 401(k) loans (although I cringe as a CFP suggesting this!) , and nonprofits may be able to help, depending on the need.  

Credit builder loan FAQ

What is the average interest rate for these types of credit builder loans?

The interest rate you’ll pay for a credit builder loan can depend on the lender and your creditworthiness. A decent interest rate for these loans is below 10%, but it’s not uncommon to see rates approaching or exceeding 30%. Shopping around can help you to find the best credit builder cash advance option. 

Can you pay off a credit builder loan early?

Credit builder loans can give you the option to pay off your loan early. However, it’s important to check with the lender to find out whether a prepayment penalty applies. Prepayment penalties help lenders recoup some of the lost interest they don’t collect when you pay a loan off early. 

What happens if you miss a payment on your credit builder loan?

If you miss a payment on your credit builder loan, your lender can report it to the credit bureaus. Should you default on the loan, the lender can use the money in your secure account to cover the remaining balance due. That’s assuming you have a traditional credit builder loan, not a cash advance loan. 

Are there tax implications for these types of loans?

Credit builder loans may have tax implications if you hold the loan proceeds in an interest-bearing account. For example, if the lender deposits the loan funds into a certificate of deposit account while you’re making payments, any interest earned is reported on a Form 1099-INT at the end of the year. You’d then have to file it with your taxes. 

Is it possible to upgrade your loan terms once your credit improves?

When you get a credit builder loan, the terms are often set until you pay off the loan. The only way to get different terms is to pay off your loan and take out a new one.

How we rated the credit builder loans that give you money upfront

Since 2020, LendEDU has evaluated personal finance companies to help readers find the best credit-building solutions. This information is gathered from company websites, online applications, public disclosures, customer reviews, and direct communication with company representatives.

These star ratings help us determine which companies are best for different situations. We don’t believe two companies can be the best for the same purpose, so we only show each best-for designation once.

Recap of credit builder loans that give you money upfront

Company	Product	Funding
MoneyLion	Credit builder loan	Up to $1,000
Chime	Secured credit card	No set limit
Oportun	Personal loan	$300 – $10,000
EarnIn	Cash advance	Up to $750
Varo	Secured credit card	Up to $10,000 per billing cycle