Wollit Credit Builder - Get the credit score you deserve (2024)

FAQs

What will my credit score be after a credit builder loan? ›

How Much Will A Credit Builder Loan Raise My Credit Score? According to a Consumer Financial Protection Bureau (CFPB) study on credit builder loans, study participants without existing debt saw their credit scores increase by 60 points more than participants with existing debt.

While your poor credit score or nonexistent credit history might not be grounds for denial in this case, if you can't prove sufficient income for the loan, you might be denied.

Credit-builder loans are easier to qualify for than a traditional loan, especially for people with poor or no credit histories. If you make regular on-time monthly payments, credit-builder loans are a good opportunity to improve your credit scores.

Whatever your reason for wondering how long it takes to get a credit score, you can generally expect it to take about six months – and usually longer to get into the good-to-exceptional credit score range.

It is possible to pay off a credit-builder loan early by paying the entire remaining balance at once rather than paying in monthly installments. But this will limit your opportunities to build credit, since you'll make fewer on-time monthly payments to add to your credit report.

Potential downsides to credit-builder loans include a drop in your score if you don't repay it on time, fees and no immediate access to money.

A credit-builder loan will raise your credit score by up to 60 points, according to data from the Consumer Financial Protection Bureau, Self, and MoneyLion. The exact increase depends on factors like where your score is to begin with, the length of the loan, and whether you pay on time.

Can you cancel a credit builder loan? ›

You may cancel at any time and the savings you've contributed so far will be deposited to your Primary Savings. Note that prematurely terminating a loan may have an impact on your credit score. If you would like to cancel your Credit Builder account, please contact Customer Service via phone or chat.

The time it takes to raise your credit score from 500 to 700 can vary widely depending on your individual financial situation. On average, it may take anywhere from 12 to 24 months of responsible credit management, including timely payments and reducing debt, to see a significant improvement in your credit score.

And when it comes to credit, 850 is the highest the FICO^® Score^☉ scale goes. For more and more U.S. consumers, practice is making perfect. According to recent Experian data, 1.54% of consumers have a "perfect" FICO^® Score of 850.

You get access to the money: If you've made all your payments on time by the end of the loan's term, your lender will make the funds available to you.

A credit-builder loan will raise your credit score by up to 60 points, according to data from the Consumer Financial Protection Bureau, Self, and MoneyLion. The exact increase depends on factors like where your score is to begin with, the length of the loan, and whether you pay on time.

After all payments are made, you get access to the money minus the finance charges (the administrative fee and the interest you are charged). If you decide to close your account before it's paid off, you can access the money in the CD, minus fees and interest, and the amount you still owe.

Since credit-builder loan lenders report your payments to the major credit bureaus, these loans help you establish a payment history (which makes up 35% of your credit score).