Credit Builder Loans for Bad Credit
Struggling with bad credit but ready to turn things around? Credit builder loans provide a structured path to improving your credit score while building savings. Apply today and take the first step toward financial recovery with a decision in minutes¹.
Get a decision in 3 minutes
Loan amount from $250-$3000
Builds credit history with on-time payments
No upfront fees or costs

Representative Example: $1,000 loan over a 12-month term would have a total cost, including interest, a total payback amount of $1,134.72. APR 29.82%. Rates between 5.99% APR and 35.99% APR for qualified customers2. Loan term lengths from 3 to 36 months for qualified consumers.
Why Choose Yup Loans for Emergency Same Day Loans
Simple Application Process
Complete our straightforward online form and receive a response in about 3 minutes¹ – no need to visit multiple lenders or fill out complicated paperwork. Our system works around the clock, so you can apply whenever it’s convenient for you.
Credit Building Opportunity
Credit builder loans are designed to help establish or improve your credit profile. Each on-time payment creates a positive payment history that can boost your credit score over time.
Accessible for All Credit Types
Our network includes lenders who look beyond what’s on your credit report when making decisions. Many of our customers find consolidation options for high-interest debt after being rejected by traditional banks³.

How Credit-Builder Loans Work
Installment loans that build credit are a type of personal loan that help with credit improvement. Unlike traditional personal loans, the lender deposits your approved loan amount into a secured savings account while you make regular monthly payments. Once you’ve successfully completed all scheduled payments, you receive the full loan amount plus any interest earned, giving you both improved credit and a lump sum of savings.
The loan application process is entirely online and secure. After submitting your information through our platform, we instantly connect you with lenders³. If approved, you’ll receive clear terms showing payment schedules, interest rates, and when you’ll receive your funds.
These loans are powerful for credit improvement because every payment you make is reported to major credit bureaus. This creates a positive payment history, which accounts for approximately 35% of your credit score calculation. By making consistent, on-time payments, you’re building a stronger credit profile while saving money for the future.
Get a Credit Builder Loan for Bad Credit in 3 Easy Steps
1
Quick Application
Fill out our simple online form to connect with credit builder loan providers.
2
Review Your Terms
Check the loan terms from our matched lender, including the payment schedule and interest rate.
3
Build Credit
Make on-time payments that get reported to credit bureaus, then receive your funds when complete.
Benefits of Credit Builder Loans
Credit building loans offer a way to rebuild your credit score while providing financial discipline. Our network includes lenders that can help you:
- Establish a credit history if you don’t have one
- Rebuild credit after bankruptcy or financial hardship
- Improve your credit score with consistent payments
- Create a positive payment history on your credit report
- Save money while building credit
- Prepare for future financial goals like auto loans or mortgages
- Learn healthy financial habits
- Graduate to better loan terms in the future

Reviews

Alicia R., Minneapolis, MN⁵: “As a recent graduate with student loans but no credit rating, I was stuck in a frustrating cycle. Yup Loans helped me find a credit builder loan that worked with my entry-level salary. The online application was simple, and I appreciated seeing exactly how my payments would work before committing. Now I’m building credit and savings simultaneously, which has given me confidence about my financial future.”

Tyler M., Boston, MA⁵: “After my divorce wrecked my credit, I couldn’t even qualify for a basic credit card. Yup Loans connected me with a credit builder loan that fit my budget perfectly. Six months of payments later, my score jumped 68 points! The process was straightforward, and watching my credit improve each month motivated me to stay on track.”
Rebuilding Credit with a Loan FAQs
How do credit builder loans improve my credit score?
Credit builder loans can build or rebuild your credit history by establishing a positive payment history³. Each time you make a loan payment on time, your lender reports this positive activity to the major credit bureaus, showing them you’re reliable with money. Since payment history makes up 35% of your credit score calculation, these regular reports can significantly improve your score.
Can you get a credit builder loan with bad credit?
Loans that build credit are specifically created for folks with bad credit or no credit at all³. The lenders in our network understand that everyone deserves a second chance and work with bad credit situations. Many of our customers have successfully qualified despite past bankruptcies, collections, or credit scores below 550.
How long does it take to see credit improvement?
Most borrowers begin to see improvements in their credit scores after 2-3 months of on-time payments, though significant changes typically take 6-12 months. The exact timeline varies based on your unique credit profile and other factors in your credit report. Consistency is key – each on-time payment contributes to building a stronger credit history.
Do personal loans build credit?
Personal loans can positively impact your credit score when used responsibly³. Any loan that reports to the major credit bureaus helps build your credit history through regular on-time monthly payments. Many of our customers use these loans specifically to diversify their credit mix – having different types of credit accounts (like monthly installment loans alongside credit cards) can positively impact up to 10% of your credit score calculation. The key is making every payment on time, every time.
Start Rebuilding Your Credit Today
Don’t let past credit mistakes define your financial future. Our simple application takes just minutes to complete¹, and you could be on your way to better credit with a structured plan that works.