13 Banks That Offer Credit Builder Loans

Looking for banks that offer credit builder loans? Explore 13 top banks and credit unions helping you better your credit score, save money, and secure better financial opportunities in 2025.

Building or repairing credit is a crucial step toward financial stability, and banks that offer credit builder loans provide an excellent solution for individuals looking to establish a strong credit history. Unlike traditional loans, credit builder loans are designed to help borrowers boost their credit scores while saving money in the process.

In this article, we’ll explore 13 banks that offer credit builder loans, how these loans work, and what you need to consider when choosing the right one for your financial needs.

What Is a Credit Builder Loan?

A credit builder loan is a loan specifically created to help individuals with poor or no credit history establish a solid credit score. Unlike traditional personal loans, where borrowers receive funds upfront, a credit builder loan works differently:

The loan amount is held in a secured account – You do not receive the loan money immediately. Instead, the bank holds it in a savings or CD account.
You make fixed monthly payments – Payments are presented to the three top credit bureaus (Experian, Equifax, and TransUnion).
At the end of the loan term, you receive the funds – After successfully completing payments, you gain access to the full loan amount.

By making timely payments, borrowers build positive credit history, increasing their chances of qualifying for better financial products in the future.

13 Banks That Offer Credit Builder Loans

Here are 13 banks that offer credit builder loans, helping customers improve their credit scores while fostering responsible financial habits.

1. Self Financial (Partnered With Banks)

Loan Amount: $600 – $1,800
Term Length: 12 – 24 months
Interest Rate: Varies
Best For: Those looking for a digital credit-building solution.
Key Feature: Option to access a secured credit card after three months.

2. Digital Federal Credit Union (DCU)

Loan Amount: $500 – $3,000
Term Length: 12 – 24 months
Interest Rate: Low fixed APR
Best For: Credit union members seeking flexible loan amounts.
Key Feature: No prepayment penalty.

3. US Bank

Loan Amount: Varies by customer profile
Term Length: Up to 24 months
Interest Rate: Competitive APR
Best For: Those who already have an account with US Bank.
Key Feature: Reports to all major credit bureaus.

4. Credit Union of Texas

Loan Amount: $500 – $2,500
Term Length: 12 – 24 months
Interest Rate: Low fixed APR
Best For: Texas residents looking to establish or improve credit.
Key Feature: Funds are placed in a secured savings account.

5. SkyOne Federal Credit Union

Loan Amount: $500 – $3,000
Term Length: Up to 24 months
Interest Rate: Low fixed rates
Best For: Those looking for a personalized credit-building experience.
Key Feature: Earns interest on held funds while making payments.

6. First National Bank Texas

Loan Amount: Varies
Term Length: 6 – 24 months
Interest Rate: Low fixed APR
Best For: Those looking for a traditional banking option.
Key Feature: Personalized guidance for credit improvement.

7. First Independence Bank

Loan Amount: $300 – $1,500
Term Length: 12 – 18 months
Interest Rate: Varies
Best For: Small loan amounts for beginners.
Key Feature: Monthly payments build savings while increasing credit score.

8. Suncoast Credit Union

Loan Amount: $500 – $2,500
Term Length: 12 – 24 months
Interest Rate: Low fixed APR
Best For: Florida residents looking for local credit-building options.
Key Feature: No hard credit check required.

9. Metro Credit Union

Loan Amount: $500 – $2,500
Term Length: 12 – 24 months
Interest Rate: Low, competitive rates
Best For: Those who prefer working with credit unions.
Key Feature: Interest earned on savings account while repaying the loan.

10. Banner Bank

Loan Amount: Varies
Term Length: 12 – 24 months
Interest Rate: Competitive APR
Best For: Those who prefer banking with a traditional financial institution.
Key Feature: Offers both secured credit cards and credit builder loans.

11. BayPort Credit Union

Loan Amount: $500 – $2,000
Term Length: 12 – 24 months
Interest Rate: Fixed rates
Best For: Virginia residents who want a local lender.
Key Feature: Automatic savings growth while improving credit.

12. KeyBank

Loan Amount: Varies
Term Length: 12 – 24 months
Interest Rate: Competitive
Best For: Those looking for personalized credit-building services.
Key Feature: Access to financial wellness resources.

13. Service Credit Union

Loan Amount: $500 – $2,500
Term Length: 12 – 24 months
Interest Rate: Low fixed APR
Best For: Military members and their families.
Key Feature: Special benefits for service members.

How to Choose the Best Credit Builder Loan

When selecting from banks that offer credit builder loans, consider these factors:

Loan Amount & Term – Choose a loan amount and repayment period that fits your budget.
Interest Rates & Fees – Look for banks with minimal fees and competitive rates.
Reporting to Credit Bureaus – Ensure the bank reports payments to Experian, Equifax, and TransUnion.
Membership Requirements – Some credit unions require eligibility criteria.
Flexibility in Early Payments – Check if there are penalties for early loan repayment.

Benefits of Credit Builder Loans

Helps Build or Repair Credit – Establishes a positive payment history.
Forces Positive Savings Habits – Encourages financial discipline.
Accessible to Those with Low Credit Scores – Many banks do not require high credit scores.
Improves Loan & Credit Card Eligibility – Increases chances of qualifying for better financial products.

Final Thoughts

If you’re looking to build or repair your credit, banks that offer credit builder loans can be a great option. These loans help establish a strong credit history while providing a savings component. Whether you choose a traditional bank like US Bank or a credit union like Suncoast Credit Union, each lender offers unique benefits tailored to different financial needs.

Before applying, compare loan terms, fees, and eligibility requirements to find the best option. With responsible use, a credit builder loan can set you on the path to financial success, opening doors to better loan approvals and lower interest rates in the future.

13 Banks That Offer Credit Builder Loans

What Is a Credit Builder Loan?