Build credit

Credit-builder loans, ranked by cost

The short answer

A local credit union is usually the cheapest way in.

  • National apps cost more — you pay for convenience and extra features.
  • We rank by total 12-month cost, per our published rubric.
  • The same on-time payments build the same history, whatever you pay.
  • The catch: the cheapest option often pays us nothing. We say so anyway.
Some links here earn us a commission. It never changes our ranking or what we tell you. See how we make money and how we rate.

How we rank these

We rank by one number: what the loan costs you over a year. That's fees plus interest, all in. We don't rank by what a lender pays us. We rank by what you pay them.

The math is simple. Every lender reports the same on-time payments to the same bureaus. So the history you build is the same. The only real difference is the price. See how the cost breaks down →

Ranked by total 12-month cost

Lenders ranked by total 12-month cost · illustrative sample data, not yet cited
#LenderTotal cost (12 mo)MonthlyFits
01Local credit union$48$25Lowest costCheapest
02Self$87$25Easy approval
03MoneyLion$110$30Bundled tools
04Example Bank$144$40Larger amount

The credit union at the top pays us nothing. It still ranks first, because it costs you least. Run your own numbers →

A closer look at two national picks

If a credit union isn't nearby, these are two known apps — costlier, but easy to start. Example cards.

Top pick

Self — Credit-Builder Account

★★★★4.2 · 1,900+ reviews
Fits First-timers who want a known name and a low minimum.
Pros
  • Low $25/mo option
  • Reports to all three bureaus
  • No hard credit check
Cons
  • Admin fee on top of interest
  • Money locked till term ends
  • Cheaper at a credit union
True cost · 12 mo$87 total
Visit Self → Advertiser link · why
Cheaper move: a local credit union often runs ~$48 for the year.

MoneyLion — Credit Builder Plus

★★★★3.9 · 1,200+ reviews
Fits People who want budgeting tools bundled in.
Pros
  • Funds some cash up front
  • Extra app features
Cons
  • Monthly membership fee
  • Highest cost on our list
True cost · 12 mo$110 + fees
Visit MoneyLion → Advertiser link
Skip the membership? Self costs less for the same reporting.
⚠ The catch

The cheapest option is often a local credit union. Credit unions pay us nothing. A page built to earn would bury them — we put them at the top.

Call two or three credit unions near you before you sign up for an app. Ask the total cost over the term. If one comes in near $48, that's the rung to take.

Read the full reviews

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