 TITLE: How Do Credit-Builder Loans Work? CONTENT: Is It Possible to Get Out of a Credit-Builder Loan Early?\n---------------------------------------------------------\nWhile most lenders will allow you to pay off the credit-builder loan ahead of schedule, doing so defeats the purpose of taking out the loan in the first place. By repaying the loan early, you cut short the positive payment history, which is what you're trying to achieve to help build credit.\nOne thing to keep in mind is that there are different consequences for paying off a loan ahead of schedule if your money is kept in a certificate of deposit (CD). If you do pay off the loan early, you'll need to wait to close the CD and withdraw the money. And you'll have to pay a penalty. If you've taken out a credit-builder loan to improve your credit, it's best to complete payments per the loan term and not pay it off early. END