 TITLE: How Do Credit-Builder Loans Work? CONTENT: Does Missing a Payment Impact My Credit?\n----------------------------------------\nWhile a credit-builder loan can be an excellent tool for improving your credit, missing payments on that loan can have the opposite effect. If you miss a payment on the loan or are even just a few days late, the lender may report that activity to the three major credit bureaus, which will cause your scores to drop. That's why you should only take out a loan if you're sure you can afford the payments. END