If you have recently filed for bankruptcy, and you have a low credit score, you may be looking for ways to rebuild your credit. One option that may help you is a credit-builder loan. A credit-builder loan is a special kind of loan that helps you improve your credit scores by making regular payments to a lender. Unlike a regular loan, where you get the money right away and pay it back later, a credit-builder loan works the other way around. You are given, say, a $1000 loan with which you immediately purchase a Certificate of Deposit (CD.)  You pay the lender a fixed amount every month, and the lender applies that to your loan. The lender also reports your payments to the credit bureaus, which may boost your credit history. When you finish paying off the loan, you can cash in the CD or you can use the funds in the account to pledge it again as collateral. The risk is small to the lender, as the bank has collateral (the CD) if you fail to make payments. 

The loan amount is typically between $300 and $1,000, and the repayment term ranges from six to 24 months. Depending on the lender and the account, the loan may earn interest while it is in a locked savings account or a certificate of deposit (CD) in your name.

If you are interested in applying for a credit-builder loan in Saint Louis, you may want to check out some of the top banks in the area that offer this product. According to Bankrate.com, some of the best banks in St. Louis based on customer satisfaction, fees, rates and accessibility are:

Commerce Bank, First Bank, PNC Bank, Regions Bank, U.S. Bank



There are also several credit unions in St. Louis that offer credit builder loans, such as Alltru Credit Union and St. Louis Community Credit Union. You can compare their rates, terms, and features online or visit their branches to apply.