If a credit builder account payment is more than 15 days late, you will be charged a late fee equivalent to 5% of the scheduled monthly installment amount. This is a one time fee (one late fee per month).

For example, a credit builder account will incur the following late fees:

  • $525 credit builder account will incur a late fee of $1.25
  • $545 credit builder account will incur a late fee of $2.40
  • $1,000 credit builder account will incur a late fee of $4.45
  • $1,700 credit builder account will incur a late fee of $7.50

If a loan payment is more than 30 days late, the payment will be reported as "late" on your credit report. If you default on the loan, you will be reported to the credit bureaus, and the credit builder account will be closed, with any remaining funds returned to you after payment of remaining loan principal, interest and fees.