Credit-Builder Loan vs. Secured Card: Verified Data Comparison
This is a moving target
Executive Order 14406 (signed May 19, 2026) directs regulators to weigh ITIN use as a possible risk factor requiring enhanced due diligence, and Treasury's June 5, 2026 advisory frames this as risk-based, not a blanket ban. This does not change the posted APRs or deposits below, but it may change identity-document requests and manual review for ITIN applicants — treat every ID-path field as provisional pending further guidance. Two issuer pages (Mission Lane, OpenSky) also showed internal pricing conflicts as of the check date; the current offer-specific disclosure at application always overrides anything listed here.
| Issuer | Product | Verdict | ID Paths Accepted | Deposit / Cost | Credit Check | Bureau Reporting | Confidence | Source | Date Checked |
|---|---|---|---|---|---|---|---|---|---|
| Self | Credit Builder Account — Small Builder | True installment loan; proceeds locked in CD | Not publicly stated | $25/mo × 24mo, no deposit, $89 total cost | No hard pull | Equifax, Experian, TransUnion | Confirmed — issuer states it | self.inc | 2026-07-21 |
| CreditStrong / Austin Capital Bank | Instal | True installment tradeline; $1,010 payout withheld until maturity | SSN required, confirmed | $15 activation fee, $28/mo × 48mo, $349 finance charge | Not publicly stated | Experian, Equifax, TransUnion | Issuer requires SSN, confirmed | creditstrong.com | 2026-07-21 |
| MoneyLion | Credit Builder Plus Loan | Membership-linked loan; reserve portion may be locked | Not publicly stated | $19.99/mo membership plus $500–$1,000 loan, 12mo term | Soft pull, no hard inquiry | TransUnion, Equifax, Experian | Confirmed — issuer states it | moneylion.com | 2026-07-21 |
| Digital Federal Credit Union | Credit Builder Loan | True credit-union loan; funds held until full payoff | DCU membership required; other paths unstated | $500–$3,000, 12–24mo, ~$52.88 cost on $1,000 example | Not publicly stated | Reported, names unknown | Confirmed — issuer states it | dcu.org | 2026-07-21 |
| Great Lakes Credit Union | Credit Builder Loan | True 0% APR loan; no application fee | GLCU membership required; other paths unstated | $1,000 max, 12mo, 0% APR, $0 if on-time | Credit pull required, type unstated | Not publicly stated | Confirmed — issuer states it | glcu.org | 2026-07-21 |
| Republic Bank | Credit Builder Loan & Savings Program | True CD-funded loan; delinquency reporting confirmed | Not publicly stated | $10 fee, $500–$1,500, 12–24mo, 7.25–7.75% APR | Not publicly stated | Delinquency reported; positive cadence unstated | Confirmed — issuer states it | republicbank.com | 2026-07-21 |
| Syracuse Cooperative FCU | Credit Builder Club | True loan; fixed 3.95% APR, restricted proceeds | Credit-union eligibility required; other paths unstated | $15 documentation fee, $300–$2,000, 6mo–3yr term | Subject to approval, type unstated | Reported, names unknown | Confirmed — issuer states it | cooperativefederal.org | 2026-07-21 |
| BMO Bank | Credit Builder Loan Program | True CD-secured loan; funds locked until maturity | Not publicly stated | $75 processing fee, $1,000–$5,000, 24–60mo term | Underwriting confirmed, inquiry type unstated | Not publicly stated | Confirmed — issuer states it | bmo.com | 2026-07-21 |
| Capital One | Platinum Secured | Conventional revolving card, $0 annual fee | Not publicly stated | $49–$200 refundable, up to $1,000 initial line | Eligibility check score-safe, final inquiry unstated | Three major bureaus | Confirmed — issuer states it | capitalone.com | 2026-07-21 |
| Discover / Capital One | Discover it Secured Cash Back | Conventional revolving card, no score required | SSN, US address, US bank required | $49–$200 based on creditworthiness, $200 min line | No score needed; inquiry type unstated | Three major bureaus | Issuer requires SSN, confirmed | discover.com | 2026-07-21 |
| Bank of America | BankAmericard Secured | Conventional revolving card; page showed unavailable notice | Not publicly stated | $200–$5,000 refundable, $0 annual fee | Not publicly stated | Not publicly stated | Confirmed — issuer states it | bankofamerica.com | 2026-07-21 |
| Citi | Citi Secured Mastercard | Conventional revolving card; graduation review at 9mo | SSN required for graduation; application paths unstated | $200–$2,500 in $100 increments, refundable | Standard qualification check, type unstated | Equifax, Experian, TransUnion | Confirmed — issuer states it | citi.com | 2026-07-21 |
| U.S. Bank | Secured Visa | Conventional revolving card; deposit earns interest | SSN and US residency required, confirmed | $300–$5,000, limit equals deposit, refundable | Not publicly stated | Three major bureaus | Issuer requires SSN, confirmed | usbank.com | 2026-07-21 |
| Navy Federal Credit Union | cashRewards Secured | Conventional revolving card; membership required to apply | NFCU membership; prequalification uses member SSN | $200–$5,000, funded from membership savings | Soft prequalify; hard inquiry on application | Equifax, Experian, TransUnion | Confirmed — issuer states it | navyfederal.org | 2026-07-21 |
| Capital Bank / OpenSky | OpenSky Plus Secured Visa | Conventional revolving card; page shows conflicting APR | Not publicly stated | $300–$3,000, no credit check to apply | No credit check | All three major bureaus | Confirmed — issuer states it | openskycc.com | 2026-07-21 |
| TAB Bank / Mission Lane | Mission Lane Secured Visa | Conventional revolving card; older agreement conflicts with current terms | Not publicly stated | Current page: $200–$1,000 refundable | Soft prequalify; hard inquiry after approval | Equifax, Experian, TransUnion monthly | Confirmed — issuer states it | missionlane.com | 2026-07-21 |
| Current / Cross River Bank | Build Card | Secured charge card, not revolving; no deposit minimum | Not publicly stated | No required minimum; spending limited to reserved balance | No credit check | Equifax, Experian, TransUnion | Confirmed — issuer states it | current.com | 2026-07-21 |
How we verified this
Verdicts are drawn only from issuer, lender, credit-union, and issuer help-center sources — no publisher listicles. Every row was cross-checked against a second independent pass using Federal Reserve regulatory data on real originations and delinquency (see FAQs), not just issuer marketing claims. Calculated costs use only issuer-published payment, payout, principal, fee, and term figures. A product described only as 'helps build credit' was never assumed to report to all three bureaus, and 'no credit score required' was never treated as equivalent to 'no credit inquiry.' All quotes are under 15 words and drawn directly from the cited source.
Frequently Asked Questions
What does market-wide data show about credit-builder loans vs. secured cards?
Federal Reserve research using NY Fed/Equifax panel data (2024:Q1) found secured cards make up 76% of credit-building accounts and 58% of balances, versus 24% of accounts and 42% of balances for credit-builder-style loans. Median origination was $325 for secured cards and $724 for loans; median monthly payment was $26 versus $35. Delinquency ran 9.5% for secured cards and 11.2% for loans.
Does a credit-builder loan or a secured card raise your score more?
A CFPB-cited study found borrowers without existing debt who opened a credit-builder loan were 24% more likely to have a credit score, with roughly 60-point gains versus peers carrying debt. Separately, keeping a secured card open for two years correlated with a 24-point median score increase, while a default-driven closure was linked to a 60-point median decrease. Borrowers who already carried other debt saw smaller gains from credit-builder loans, and 39% missed at least one payment.
Is a secured card's deposit a fee?
No. The deposit is refundable collateral, not a finance charge — it's returned on qualifying graduation or paid-in-full closure. The real cost is lost liquidity while it's held, plus interest only if a balance is carried. A credit-builder loan's interest and processing fees are actual borrowing costs, separate from the amount eventually paid out.
Why do some issuer pages disagree on pricing for the same card?
Mission Lane's current product page and an older cardholder-agreement template show different deposit and fee ranges, and OpenSky Plus's own page displays two different purchase APRs. In both cases the applicant's current, offer-specific disclosure at application is the number that governs — not this table or any older agreement.
Does the 2026 executive order on ITINs affect these products?
Executive Order 14406 (May 19, 2026) tells regulators to weigh ITIN use as a possible risk factor, and Treasury's June 5, 2026 advisory frames that as risk-based rather than an automatic block. It doesn't change any posted rate or deposit above, but identity-document requests and manual review may shift while regulators finalize guidance — treat ID-path fields as provisional.