# What is the Credit Builder Loan? > The Credit Builder Plus Loan is a simple lowrisk way to help you build credit while giving you access to funds You can borrow money make small manageable p Source: https://help.moneylion.com/en_us/what-is-the-credit-builder-loan-Bk02Fmj0A Last updated: 2025-10-31T18:10:05.221Z The **Credit Builder Loan** is like a VIP pass to access a powerful credit-building tool. Borrow some cash, make bite-sized payments, and improve your credit health. Easy, right? ### **Key benefits:** * 📈**Credit Building:** On-time payments are reported to all three credit bureaus, which can help boost your credit score. * 💵**Savings:** A portion or all of your loan is held in a Credit Reserve Account, helping you earn a little interest as you repay. Learn more about the [difference between credit builder and standard personal loans](https://help.moneylion.com/en_us/credit-builder-loans-vs-personal-loans-BJnPmXwo1x). ### **How does the Credit Builder Loan work?** Once approved for a Credit Builder Loan, you might get some of your loan disbursed to an account of your choice **immediately** while the rest chills in a [**Credit Reserve Account**](https://help.moneylion.com/what-is-the-credit-reserve-account-Hkvg2z0fF). As you make **on-time payments**, we report these payments to all three credit bureaus, helping you **build credit**. When you finish paying, you get the **rest of your money** (plus a little **interest** on the side). 🎉 MoneyLion offers **two types** of Credit Builder Loans: * 💳 **Partially-secured loan**: A portion of the loan is disbursed immediately, while the rest is held in a Credit Reserve Account. You can access the remaining funds once you finish paying your loan, or you can use the funds in the Credit Reserve to pay the remaining balance of your loan. * 🔐 **Fully-secured loan**: The full loan amount is held in the Credit Reserve Account, and you gain access only after completing all payments. ### **How do I qualify for a Credit Builder Loan?** You just need to: * ✅ Be at least 18 years old * ✅ Be a U.S. citizen or permanent resident * ✅ Have a valid Social Security number * ✅ Own a checking account with a positive balance Applying is easier than your morning coffee order—apply now! The Annual Percentage Rate (APR) ranges from **5.99% to 29.99%**. 📊 You'll see your loan amount, terms, and APR before committing. To access the loan, you must be a [**Credit Builder Plus member**](https://help.moneylion.com/what-is-the-credit-builder-plus-membership-B1VgnGAMY). **Want to learn more about this credit-building powerhouse?** [Click here for more info](https://help.moneylion.com/categories/credit-builder-loan-rkKva9_Ta). * * * ## # **Frequently asked questions** _**How much upfront cash am I eligible for?**_ Your eligibility is based on a mix of factors: creditworthiness, your financial history, and state-specific regulatory guidelines. We take a bunch of things into account to determine your amount, and yep—it can vary. Plus, approval and disbursement go through our standard underwriting process. The best way to find out what’s available to you? Complete the application process and see for yourself! _**Why didn’t I get cash up front?**_ If your loan didn’t come with immediate cash disbursement, you received a fully secured loan. This means your loan funds are held in a Credit Reserve Account until you’ve finished making payments. This is based on underwriting criteria and your credit history. _**How can I get upfront cash next time?**_ Keep making on-time payments to show lenders you’re a responsible borrower. Over time, you could qualify for a partially secured loan—meaning you’d get access to some cash upfront while still building credit. _**Can I pay off my loan early?**_ You can pay it off early if you want—but here’s the thing: we designed this loan to give you the **biggest credit-building potential** over time. Making consistent, on-time payments until the loan is paid off helps boost your credit history the most. So, while early payoff is an option, sticking to the full loan term might be the best move for max credit impact. 📈[Learn more about your loan payment options](https://help.moneylion.com/how-do-i-pay-off-my-loan-B1uXnfRfY). _**What happens if I miss a payment?**_ Missed payments are [reported to all three major credit bureaus](https://help.moneylion.com/when-does-moneylion-report-to-the-credit-bureaus-rkUQ3GRfF) after 30 days. To keep things smooth, we help you set up **automatic payments** from your preferred account when you sign your loan agreement so you never forget. Of course, you can always cancel the automatic payments—just make sure to mark your calendars so you don’t miss a payment! Remember—stopping automatic loan payments does not remove the obligation to make payments on your loan. Missed payments will be reported to all three major credit bureaus after 30 days. _**Why keep my membership after paying off my loan?**_ **Your Credit Builder Plus Membership isn’t just about the loan**—it’s about **leveling up** your entire credit game. Stay on top of your finances with credit monitoring, powerful financial tools, and the option to **apply for another loan** when you need it. Not only that but with the Credit Builder Plus Membership, you gain access to these amazing perks: * Enhanced Credit Monitoring with weekly credit score updates, personalized insights, and real-time alerts * Access to a [Managed Investing Account](https://help.moneylion.com/categories/managed-investing-Hkzyxjuaa) with waived monthly fees * Cashback rewards for engaging in credit-building activities through our Lion’s Share Loyalty Program * Exclusive content and educational tools designed to boost your credit health * Increased eligibility limits of interest-free [Instacash](https://help.moneylion.com/categories/instacash-HJo01iOaT)® advances _**How do I cancel?**_ **Once you’ve agreed to the loan terms, you can’t cancel the loan.** However, you **can** [cancel your Credit Builder Plus **Membership**](https://help.moneylion.com/en_us/how-to-cancel-moneylion-memberships-and-products-or-moneylion-BJOW2zRGF) after the first two months. Sticking with the membership—even if it’s just for two months—provides you with the tools and resources needed to start your credit-building journey. Just keep in mind that **cancelling your membership won’t cancel your loan payments**—you’ll still need to pay off the full loan balance. Learn more about cancelling your membership. * * * _Credit Builder Plus Membership ($19.99/mo) unlocks eligibility for Credit Builder Loans and other exclusive services._  _Credit Builder Loans have an annual percentage rate (APR) ranging from 5.99% APR to 29.99% APR, are offered by affiliates of MoneyLion and subject to approval. The Credit Builder Loan may require a portion of the loan proceeds to be deposited into a Credit Reserve Account maintained by ML Wealth LLC and held in non-marginable securities by DriveWealth LLC, member SIPC and FINRA. Membership is required for loan access. Not available in all states._ _Credit Reserve Accounts Are Not FDIC Insured • No Bank Guarantee • Investments May Lose Value. For important information and disclaimers relating to the MoneyLion Credit Reserve Account, see_ [_Investment Account FAQs_](https://help.moneylion.com/categories/investing-Sy3AJsupa) _and_ [_ML Wealth LLC’s FORM ADV_](https://www.moneylion.com/adv)_. Please also refer to your Loan Agreement._ _Credit score improvement is not guaranteed. Credit scores are independently determined by credit bureaus, and on-time payment history is only one of many factors that such bureaus consider. Your credit score may be negatively impacted by other financial decisions you make, or by activities or services you engage in with other financial services organizations._