 TITLE: How Do Credit-Builder Loans Work? CONTENT: What Fees Do Lenders Charge on Credit-Builder Loans?\n----------------------------------------------------\nCredit-builder loans can be helpful, but they can also be expensive. Some credit-builder loans have significant fees, including:\n*   **Administrative fees:** These are usually paid before you can qualify for the loan. For loan provider Self Lender, for example, the administrative fee can be $9 to $15.\n*   **Annual percentage rate (APR):** Credit-building loans charge interest and fees; the APR is the rate of interest they charge. APRs typically range from 6% to 16% on these loans and are dependent on your creditworthiness and the lender's rates.\n*   **Late fees:** If you miss a payment, you may have to pay a fee on top of what you already owe—usually a percentage of that missed payment.\nIf used carefully, credit-builder loans can be a great first step toward establishing a strong credit history so you can qualify for other types of credit. However, it's important that you're aware of the fees associated with them, as they can be costly.\nIf you're looking for other options to boost your credit, consider applying for a secured credit card. If you pay off your statement balance in full each month, you'll avoid paying interest and still increase your credit score. END