Where to Get a Credit-Builder Loan in Your State: Credit Unions, Banks and Online Options

Quick answer: the best place to start is usually a local credit union, then a community bank or a nonprofit community lender (CDFI). If there’s nothing near you, some online lenders work across many states. Whichever you pick, check three things before you sign: that it reports to all three credit bureaus, what the total cost is, and that you can comfortably make every payment.

New to the idea? First read what a credit-builder loan is and how it works: you pay first and get the money at the end.

Where you can get one

How to find one in your state

There isn’t one official list of credit-builder loans by state, because each lender chooses what it offers. These steps work in any state, from Wyoming to Maryland:

1. Find local credit unions with the NCUA credit union locator. The NCUA is the federal agency that insures credit unions.
2. Check whether you can join. Membership often depends on where you live or work, or on your employer, school or a group you belong to.
3. Look for these words on their websites: “credit builder loan,” “credit builder,” “share-secured loan” or “fresh start loan.”
4. Call if you don’t see it. Not every product appears online. Ask: “Do you offer a credit-builder loan or a small share-secured loan?”
5. Ask local nonprofits. Housing counselors and community organizations often know which local lenders offer these loans.
6. Compare with an online option to be sure the local one is a good deal.

Note: a share-secured loan is a close relative. You borrow against money you already have in savings. Ask whether the lender reports it to the credit bureaus.

What to ask before you sign

1. Do you report to Equifax, Experian and TransUnion?
2. What are the monthly payment, term and APR?
3. Are there any fees to apply, join or close the loan?
4. How much will I get back at the end?
5. Will you do a hard credit inquiry? (What that means.)
6. What happens if I miss a payment?
7. Can I close it early, and do I get my payments back?
8. Do you accept an ITIN if I don’t have an SSN?

Examples from online lenders

To show what these plans look like, here are two real examples from their official websites. We earn nothing if you sign up, and these aren’t recommendations. Plans change, and they may not be available in your state.

Always read the full terms, including the APR, fees and what you pay in total. Compare them with what a local credit union offers.

Is it worth it? What the research says

The Consumer Financial Protection Bureau studied 1,531 credit union members offered one of these loans, and published the results in 2020:

• People without existing loans were 24% more likely to have a credit score after opening one.
• Those people also saw their scores rise 60 points more than people who already had debt.
• People with existing debt saw their scores drop slightly on average, which suggests the extra payment was hard to manage.

It was one study of one credit union product, so your results may differ. But the lesson is useful:

FAQ

Can I get a credit-builder loan with no credit? Yes, that’s what they’re designed for. Requirements vary, and many lenders look at your income and bank account instead of your score.

Can I get one without an SSN? Some credit unions accept an ITIN, so ask first. See how to build credit with an ITIN.

Which is better: a credit union or an online lender? Compare the total cost. A local credit union is often cheaper, while an online lender can be easier if you have no branch nearby or can’t join one.

How much should I borrow? Choose a monthly payment you can make without stress. The goal is a record of on-time payments, not a big loan.

How long until I see results? Usually, a first score can appear after about 6 months of reported payments. See how long it takes to build credit.

This article is for educational purposes only and is not financial advice. Terms and availability vary by lender and state. Read our Disclaimer.