Credit builder loans and cards compared: cost and bureaus (2026)
Edited by Moe Ameen · Published
A credit builder loan holds the money you borrow in an account while you pay it off, then releases it, and your payments get reported to the credit bureaus. The CFPB found it helped people with no existing loans get a score, but it hurt scores for some who already had debt. Of the 12 products we checked, 10 report to all three bureaus. Memberships ran $0 to $35 a month; loan payments $16 to $310.
Key takeaways
- Credit builder loans report your payments and hand you the money at the end, minus interest and fees.
- The CFPB found they worked better for people without existing debt.
- Extra reports to two bureaus and Experian Boost only to Experian; the other 10 products we checked report to all three.
- Every product we checked except Experian Boost, which doesn't say, states it uses no hard pull to open.
How does a credit builder loan work?
The lender holds the loan amount in a locked account. You pay it off in installments, the payments get reported, and you get the money at the end.
The CFPB describes it as building credit and savings at the same time: the money isn't yours for spending until the loan is paid, usually over 6 to 24 months, and the payments are reported to the three nationwide credit reporting companies [1].
Do credit builder loans work for everyone?
No. In the CFPB's study, they helped people with no existing loans get a score, but scores fell for some participants who already had debt.
Among participants without existing loans, opening one made them 24% more likely to have a credit score [2]. For participants with existing debt, the loan appeared to lower scores, and the CFPB found it made it harder for some to keep up with their other loan payments [2]. If you're already stretched, an extra monthly payment can backfire.
How much does a credit builder loan cost?
You pay interest and sometimes fees. On Self's $35 plan, you pay $840 over 24 months and get $717 back, a $123 finance charge.
Self's plans carry APRs from 15.51% to 15.92% [3]. CreditStrong's Instal plan is $28 a month for 48 months with a 15.61% APR and a $15 activation fee [5]. Subscription products like Kikoff, Grow Credit and Ava charge a monthly fee instead of interest.
Do all credit builders report to all three bureaus?
No. Extra reports to Equifax and Experian only, and Experian Boost adds payments to your Experian file only.
A lender that pulls your TransUnion report won't see Extra's reporting [9]. Experian also notes that not all lenders use Experian files or scores affected by Boost [12]. Ava's card reports to all three, but its rent and utility reporting goes to TransUnion only [11].
Does opening a credit builder hurt my credit?
It shouldn't add a hard inquiry: 11 of the 12 say they use no hard pull. A new account and missed payments can still affect your score.
Self warns that failing to pay by the due date may be reported as delinquent, and says its product won't remove negative history from your report [3]. MoneyLion uses a soft pull, which doesn't affect your score [10].
Glisten check
12 credit builder products compared
| Product | Type | Cost | Reports to | Hard pull |
|---|---|---|---|---|
| Ava Credit Builder Card | Card | $5/mo on an annual plan, or $10 monthly [11] | All three [11] | No [11] |
| Chime Card | Secured card | No annual fee or interest [6] | All three [6] | No [6] |
| CreditStrong Instal | Installment loan | $28/mo for 48 months, 15.61% APR, $15 fee [5] | All three [5] | No [5] |
| CreditStrong MAGNUM | Installment loan | $16 to $310/mo, $25 admin fee [5] | All three [5] | No [5] |
| CreditStrong Revolv | Revolving account | From $15/mo, 0% APR [5] | All three [5] | No [5] |
| Experian Boost | Bill reporting | Free [12] | Experian only [12] | Not stated |
| Extra | Debit card with credit line | $20/mo or $149/yr [9] | Equifax, Experian [9] | No [9] |
| Grow Credit | Bill-pay card | $0 to $12.99/mo [8] | All three [8] | No [8] |
| Kikoff Credit Account | Revolving account | From $5/mo for 12 months [7] | All three [7] | No [7] |
| MoneyLion Credit Builder Plus | Installment loan | $19.99/mo membership, 5.99% to 29.99% APR [10] | All three [10] | Soft pull [10] |
| Self Credit Builder Account | Installment loan | $25 to $150/mo for 24 months, about 15.5% to 15.9% APR [3] | All three [3] | No [3] |
| Self Visa Credit Card | Secured card | $100 minimum deposit; $0 first year, then $25 a year [4] | All three [4] | No [4] |
Two of the 12 don't report to all three bureaus. MoneyLion may put part of your loan proceeds in a reserve account held in securities, which it says isn't FDIC insured [10].
Is this right for you?
Best for
- People with no credit score or a thin file.
- Anyone comparing the real cost of a credit builder before signing up.
Not ideal for
- People already struggling with existing debt payments; the CFPB found mixed results there.
- Erasing old late payments. These products add new payment history, and the old late payments stay on your report.
Frequently asked questions
Is Self worth it?
It depends on your situation. On the $35 plan you pay $840 and get $717 back after 24 months [3]. The CFPB found credit builder loans worked best for people without existing debt [2].
Does Kikoff report to all three bureaus?
Yes. Kikoff says it reports to Equifax, Experian and TransUnion at the start of every month [7].
Does Experian Boost help with every lender?
No. Experian says not all lenders use Experian files or scores affected by Boost [12].
How we know this
On October 28, 2026 we read each product's own pricing, FAQ and disclosure pages for cost, the bureaus it reports to and whether it pulls your credit, and the CFPB's explainer and 2020 study on credit builder loans. Product names and plans are as each company lists them on that date.
- What are some ways to start or rebuild a good credit history?, CFPB. Checked October 28, 2026.
- Targeting credit builder loans (research report), CFPB. Checked October 28, 2026.
- Credit Builder Account pricing, Self. Checked October 28, 2026.
- Self Visa Credit Card, Self. Checked October 28, 2026.
- Pricing, CreditStrong. Checked October 28, 2026.
- Chime Card, Chime. Checked October 28, 2026.
- FAQ, Kikoff. Checked October 28, 2026.
- Grow Credit, Grow Credit. Checked October 28, 2026.
- Extra, Extra. Checked October 28, 2026.
- Credit Builder Plus, MoneyLion. Checked October 28, 2026.
- FAQ, Ava. Checked October 28, 2026.
- Experian Boost, Experian. Checked October 28, 2026.