Credit Builder is a 36-month product designed to help you build your credit and payment history by reporting your payments to the credit bureaus. Your payments of $10/month are reported to both Equifax and TransUnion. Making on-time payments has a positive effect on your payment history, which impacts up to 35% of your overall credit score.
The types of credit or tradelines you have on your credit report also determine 10% of your overall score. If you find the type of credit you hold is mainly credit cards, having Credit Builder on your credit report can help. Credit Builder is reported to the credit bureaus as an instalment loan. It will show the bureaus that you can handle different types of credits and not just credit cards.