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Credit Builders Quiz

Wendy Massengill

Created on September 15, 2025

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Transcript

Credit Builders Quiz

Start

Credit builders are confusing.

Is it a good idea for you to open a credit builder loan or account? Let's test your knowledge about if a credit builder account is good for you... or if it will turn into a credit bummer.

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The fee for credit builder accounts is about 15%.

Paying a company a fixed fee of 15% to have them hold your money for you is insane! Savings accounts pay you 5% for the privilege to hold your money!

Got it!

Credit builder loans charge you about 15% to hold your money.

If you have a credit builder loan, you should consider cancelling it and getting your money back.

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Because you are prepaying your credit balance, you are paying a company to hold your own money for you.

At the end of the "loan", the account will disappear.When the account closes, your credit score is going to go back down, and the only thing you'll have is 15% less money than what you started with.

Got it!

The average impact to your credit score is 15-30 points for a new account.

When you open a new account, your credit age decreases, and you'll see a penalty to your credit score for a few months.

Got it!