How does a secured credit card work?

October 12, 2022

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*Loan proceeds are deposited into a secured savings account (also known as Credit Builder Security Deposit Account) with WebBank, Member FDIC. The savings account does not earn interest. The funds in your secured savings account will not be accessible until your loan is paid in full or canceled. You build savings by having funds available to you at the end of the loan in your accumulated savings account. Note that interest and a one-time, prepaid, administration fee apply to the loan product.

¹Account closings may negatively impact your credit score. The account openings and closings of your Credit Builder Loan will be reported to credit reporting agencies.

²https://www.myfico.com/credit-education/whats-in-your-credit-score. This credit score is referring to your FICO score, which is a commonly used scoring model. Both positive and negative payment history impact your credit score. The impact of payment history with other scoring models will vary. Making on time payments on the Credit Builder Loan may help to build a credit profile for consumers without existing debt. Failure to make on-time payments will result in negative history reported to credit reporting agencies and may negatively impact your credit score.

³Average outcome for customers who opened a Build Credit Builder account in Q4 2022, starting VantageScore 3.0 under 600, who made on-time payments. Other factors, including activity with your other creditors, may impact results. On-time payments does not mean full program completion and past performance based on this study does not guarantee future results. A credit score increase is not guaranteed.

For example: (1) Starter Loan: Your loan amount is $520. You make $25 monthly loan payments for 24 months and there is a $9 administration fee. 15.92% Annual Percentage Rate. By the end of your loan term, you will have paid $609 ($89 cost); (2) Intermediate Loan: Your loan amount is $724. You make $35 monthly loan payments for 24 months and there is a $9 administration fee. 15.97% Annual Percentage Rate. By the end of your loan term, you will have paid $849 ($125 cost); (3) Value Builder Loan: Your loan amount is $539. You make $48 monthly loan payments for 12 months and there is a $9 administration fee. 15.65% Annual Percentage Rate. By the end of your loan term, you will have paid $585 ($46 cost); and (4) Expert Saver Loan: Your loan amount is $1,663. You make $150 monthly loan payments for 12 months and there is a $9 administration fee. 15.91% Annual Percentage Rate. By the end of your loan term, you will have paid $1,809 ($146 cost).

PRGB, Inc. is not a bank and does not originate any loan, credit card account, or extension of credit. Build is a third-party marketing vendor and servicer. All loan products, effective May 26, 2023, are issued by WebBank, Member FDIC. All loan proceeds are deposited into a secured savings account with WebBank, Member FDIC. Loan products that originated prior to May 26, 2023 were funded and will continue to be serviced by Synapse Credit LLC. The Build Secured Card is issued by WebBank, Member FDIC, pursuant to a license from MasterCard. Access to loan products and the Secured Card is subject to approval by WebBank, who determines qualifications for and terms of credit. Individual borrowers must be U.S. Citizens, permanent residents, or non-resident U.S. Aliens and at least 18 years old. Valid bank account and Social Security Number are required. All loans and credit card accounts are subject to ID verification. Results are not guaranteed. Improvement in your credit score is dependent on your specific situation and financial behavior. This product will not remove negative credit history from your credit report.

PRGB, Inc. NMLS ID# 2410706 | Licenses | NMLS Consumer Access

Not available in all states. Certain terms and conditions apply. See the loan application and disclosures for full details.

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