If you have a poor or non-existent credit history, it can be difficult to secure favourable loan terms, a student loan, or even a traditional credit card with a reasonable interest rate. A lack of positive payment history can also worsen your credit score and put many of your personal finance goals out of reach.
Credit-builder loans are designed to help those with poor credit or a limited credit history demonstrate an ability to make on-time monthly payments. But you should be aware that a credit-builder loan is a type of personal loan that works differently from a traditional loan.