Get Cash Now While Building Your Credit with Credit Builder Loans That Provide Money Upfront

Credit builder loans can help with establishing or re-establishing credit history, but they don’t work like traditional loans.

Instead of getting the money when you’re approved, the lender holds the loan funds in a secure account. The borrower pays the loan back in installments, with the lender reporting their payment activity to the credit bureaus. Once the borrower pays the the loan amount in full—typically between $300 and $2,000—the lender turns over the loan proceeds to them.

Howeve, certain credit builder loans give you money upfront. If you’d like to build credit and get access to immediate cash, it helps to know what options you have.

Building or rebuilding your credit can be a challenging process. Traditionally credit builder loans allow you to make payments on a loan that are reported to the credit bureaus. However you don’t receive the loan amount until the repayment period is over. This helps build your credit, but doesn’t provide immediate access to cash when you need it. Thankfully, some lenders now offer credit builder loans that provide money upfront so you can start establishing credit history while also covering expenses.

In this comprehensive guide, we’ll explain everything you need to know about credit builder loans with money upfront. We’ll cover the pros and cons examine top lenders provide tips for using the cash wisely, and outline alternatives if these loans don’t meet your needs. By the end, you’ll understand if a credit builder loan with an upfront cash advance is right for your situation.

What Are Credit Builder Loans with Money Upfront?

A credit builder loan with money upfront gives you immediate access to some or all of the loan amount when you’re approved. The lender reports your monthly payments to the credit bureaus to help establish or rebuild your credit history.

With a traditional credit builder loan, the lender holds the full loan amount in a secured account while you make payments. You don’t receive the money until the loan is paid off. Credit builder loans with upfront cash provide more flexibility when you need funds quickly.

These loans typically range from $300 to $1,000 or more. You’ll repay the loan in fixed monthly installments like a personal loan. Interest rates often range from 5.99% to as high as 35%, depending on the lender. An origination or administrative fee may also apply.

The Benefits of Credit Builder Loans with Immediate Cash

Getting access to cash immediately is the biggest advantage of credit builder loans that disburse money upfront. Here are some other potential benefits:

Quick access to funds – After approval, the lender deposits a portion or the full loan amount directly into your bank account. No waiting until the repayment period ends.
Establish credit history – Making on-time monthly payments is reported to Equifax, Experian, and TransUnion. This helps build your credit if you have little or no credit established.
Pay for expenses – Use the loan funds to cover emergency costs, bills, or other expenses when money is tight. The cash can help hold you over until your next paycheck.
No collateral required – These loans are unsecured, so you don’t have to put up an asset as collateral to borrow. Approval is based on factors like income rather than property you own.
Easy qualification – Lenders often only do a soft credit inquiry that won’t impact your score. Some don’t check credit at all. Relaxed requirements make it easier to qualify.
Fast funding – Many lenders fund loans within one business day of approval. The cash can be deposited directly into your checking account.

Things to Consider Before Borrowing

While credit builder loans with immediate cash access have advantages, they also come with risks and drawbacks to consider:

High rates and fees – Interest rates can exceed 30% with some lenders. Origination fees from 1% to 10% of the loan amount may also apply. This can make the cost of borrowing quite expensive.
Short repayment terms – Most credit builder loans have repayment periods of 12 months or less. The short timeline can make keeping up with payments challenging if money is already tight.
Credit damage if you default – Failing to make payments on time can negatively impact the credit you’re trying to build. Defaulting entirely can make problems even worse.
Small loan amounts – While amounts can reach $1,000 or more, some starting limits are only $300. The lower end may not provide enough cash to cover emergencies.
Debt obligations – As with any loan, you take on a financial obligation that must be repaid over time. If you already have debt, adding more could worsen your financial situation.

Analyze your budget and financial situation closely before pursuing one of these loans. Make sure you can realistically handle the monthly payment based on your current income and expenses. Otherwise, the cons could outweigh the pros in the long run.

Top Lenders for Credit Builder Loans with Money Upfront

If you’ve weighed the pros and cons and decided a credit builder loan with an upfront cash advance fits your needs, the next step is finding the right lender. Here are a few top options to consider:

MoneyLion

MoneyLion offers Instacash advances of $25 to $700 as part of its Credit Builder Plus program. Instacash is an 0% APR cash advance that lets members access a portion of their credit builder loan amount before completing the repayment period.

In addition to Instacash advances, members can borrow up to $1,000 for credit-building. MoneyLion reports loan payments to all three credit bureaus. An annual membership fee of $19.99 applies.

Loan amounts: Up to $1,000
APR: Ranges from 5.99% to 29.99%
Term lengths: 12 months

Upgrade

Upgrade offers credit builder loans and credit-building lines of credit. With Upgrade credit builder loans, borrowers can access $500 to $5,000 immediately after approval. Upgrade reports payments to TransUnion and Experian.

Upgrade also offers Credit Health loans and lines of credit specifically designed to help build and strengthen credit. Loan amounts range from $500 to $25,000.

Loan amounts: $500 to $25,000
APR: Varies from 7.96% to 35.97%
Term lengths: 2 to 7 years

OppLoans

Through its OppFi platform, OppLoans offers installment loans of $500 to $4,000 to borrowers with poor credit or no credit history. While not specifically marketed as credit builder loans, OppLoans reports your payment history to the major consumer credit bureaus to help establish credit.

Once approved, you get access to the full loan amount immediately via direct deposit into your bank account as soon as the next business day. No payoff waiting period required.

Loan amounts: $500 to $4,000
APR: Varies from 99% to 199%
Term lengths: 9 to 18 months

Payoff

Payoff Personal Loans offers loans up to $5,000 for credit building and debt consolidation. What sets Payoff apart is its partnership with Payoff Plus. This service challenges members to grow credit, earn rewards, and learn new financial skills.

Customers can access funds immediately after approval. Payoff reports payments to TransUnion only. Loan amounts depend on your state of residence and income.

Loan amounts: $500 to $5,000
APR: Varies from 5.99% to 24.49%
Term lengths: 2 to 5 years

Be sure to compare lenders carefully based on factors like loan amounts, APR, fees, minimum credit score, and other requirements. This can help you identify the right loan for your credit-building needs and budget.

Tips for Using Your Loan Funds Wisely

Since credit builder loans with upfront cash come with high costs and risks, it’s important to use the money carefully. Follow these tips to make the most of your loan funds:

Pay down high-interest debt – If you have credit card balances charging over 20% APR, use your loan to pay those down first. This minimizes expensive interest fees.
Boost your credit utilization ratio – Keeping credit card balances low compared to the credit limit can help your credit score. Use loan funds to keep utilization under 30%.
Cover emergency costs – Vehicle repairs, medical bills, and urgent home repairs are wise uses. But have a plan to rebuild savings in case of the next unexpected expense.
Avoid unnecessary purchases – It can be tempting to use the cash for shopping and entertainment. But frivolous purchases can quickly eat up loan proceeds and leave you short when you really need money.
Make payments on time – Set payment reminders and stick to your monthly due dates. Delinquent or missed payments undo the credit-building benefits.
Pay off the loan early – If possible, make extra payments to pay off your loan faster. This minimizes interest paid over the life of the loan. Just be sure no prepayment penalty applies first.

Following a strategic plan for using credit builder loan proceeds can help maximize the benefits while minimizing the risks and costs.

Alternatives to Credit Builder Loans with Instant Cash Access

Credit builder loans that provide upfront money can be expensive. If you need immediate funds but want to limit costs, here are a few alternatives worth considering:

Paycheck advance apps – Earnin, Dave, and other apps let you access a small advance on your upcoming paycheck. Minimal fees apply and no interest accrues.
Credit union loans – Local credit unions may offer small personal loans with lower rates and fees compared to fintech lenders. Some

Credit builder loans with immediate access to cash

Banks, credit unions, and fintech companies can offer credit builder loans, but options that give you money right away can be difficult to find. Credit builder loans that pay money upfront can present a greater risk to lenders if the borrower doesn’t make good on repayment.

Still, options are available if you’d like to get a cash advance to build credit. We’ve selected five of the best credit builder loans that give you money upfront.

Click the lender name in the table to drop to our profile below and read all the details.

Lender	Type	Loan amounts	Special features
MoneyLion Credit Builder Plus	Credit builder loan	Up to $1,000	Monthly reporting 0% APR cash advances
Chime Credit Builder	Secured credit card	No set limit	No hard credit check No annual fee
Oportun	Personal loan	$300 – $10,000	No prepayment penalties Poor credit accepted
Dave	Cash advance	Up to $500	No credit check No interest
Varo Believe	Secured credit card	Up to $1,000 daily cash advance per day Up to $2,500 daily spending limit Up to $10,000 per billing cycle	No credit check No fees or interest

Can you pay off a credit builder loan early?

Credit builder loans can give you the option to pay off your loan early. However, it’s important to check with the lender to find out whether a prepayment penalty applies. Prepayment penalties help lenders recoup some of the lost interest they don’t collect when you pay a loan off early.

Best Credit Builder Loans That Give You Money Upfront 2023 | Top Credit Builder Loans App 2023

FAQ

Do credit builder loans give you money upfront?

A credit-builder loan is different from a traditional loan. With a credit-builder loan, you make fixed payments to a lender and then get access to the loan amount at the end of the loan term—instead of borrowing upfront and paying it back over time.

Can I get a cash advance with my Chime credit builder card?

The only way to withdraw cash from your Credit Builder card’s secured account is to do a cash advance at an ATM. We usually discourage cash advances since they carry fees and a hefty cash advance APR, but Chime’s cash advance doesn’t come with added fees.

Can you borrow money from credit builder?

You can only access the loan after you repay it, so it’s not a good choice for anyone who needs money immediately. Credit-builder loans are only available in small amounts. Fees and interest rates can add up, especially if you already have a tight budget.

Does Bright money give you a loan?

Bright does not offer personal loans. But we can help pay off your card debts faster. Bright Credit offers a low-interest line of credit designed to pay off card debt fast while saving you from high-interest charges. It works like a personal debt consolidation loan.

Do credit builder loans give you cash upfront?

Yes. Some credit builder loans give you some cash upfront. This can be helpful when you need immediate access to funds while still building your credit score. However, it’s important to research and compare different credit builder loans and their terms to find the best option for your needs.

Where can I get a Credit Builder loan?

Should you get a Credit Builder loan?

A credit builder loan that gives you money upfront could help you solve a temporary financial gap, but consider what you’ll pay for it in the long run. Say, for instance, you decide to apply for a loan with MoneyLion. You’re approved for the full $1,000 loan amount and get half that upfront.

How do credit builder loans work?

research influence how products appear on a page. Credit builder loans can help with establishing or re-establishing credit history, but they don’t work like traditional loans. Instead of getting the money when you’re approved, the lender holds the loan funds in a secure account.