 TITLE: How Do Credit-Builder Loans Work? CONTENT: Do Credit-Builder Loans Earn Interest?\n--------------------------------------\nWith some credit-builder loan lenders, the lender places your funds in an interest-bearing savings account or CD while you make payments. When you finish making payments, the amount is released to you. While you can technically earn some interest on a credit-builder loan, the rate you earn in interest will be at a far lower rate than the interest you pay on the loan.\nFor example, you may have a loan held in a CD that earns 1.25% interest. But the interest rate you're paying on the loan could be as high as 15%. Any earnings that you would have made—and it's likely you won't earn more than a couple of dollars—will likely be eaten up by the interest rate and fees you pay on the loan. END