CreditStrong Review – Build Savings While Improving Credit
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Fast Facts
Purpose:
Helps build credit
Serves:
Individuals and businesses
Cost:
Varying plans
Payment terms:
24 to 120 months
Suitable for:
Individuals with no credit history
There comes a time in our lives when we start thinking about credit. Good credit is important for many things, including getting approved for a mortgage and getting the best credit cards. It can seem daunting when you’re first starting and might seem even worse if you have negative items on your credit report. Fortunately, there are some opportunities out there that may be able to help you build your credit.
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What is CreditStrong?
CreditStrong is a company that allows borrowers to build credit history and savings with a secured consumer installment loan and a savings account. Austin Capital Bank funds the installment loans and creates a savings account in your name. The funds from your installment loan go into the savings account, and a lock is placed on the funds to secure the loan.
When you sign up, you can choose the plan that works best for you. Each plan has a fixed monthly payment and a loan amount you will receive. The plans also have assigned payment terms, which can range anywhere from 24 to 120 months, depending on the plan.
You’ll need to make a monthly payment in the amount you choose each month. The payments are split between principal and interest. The principal portion of the loan payment is credited toward the lock on your savings account, while the interest payment covers the costs of using the service. You’ll also earn interest on your savings account balance.
During your payment term, CreditStrong will report your loan payment history to all three major credit bureaus — Equifax, Experian, and TransUnion. This will help you build a positive credit history, which you might need in the future for other loans. When you’ve repaid the loan in full, the lock is removed from the savings account where your installment loan was deposited. The funds become fully available to you now, and you can use them however you’d like.
All CreditStrong savings accounts are FDIC-insured and part of an independent financial institution. You can trust that your money is safe with the lender throughout the lifetime of your account.
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How does CreditStrong work?
When you visit the CreditStrong website, you’ll see the “Get Started” button on the home page. Clicking this button will take you to the start of the process.
The first pieces of information that you need to provide are your email address and name.
To use CreditStrong, you have to be at least 18 years old. So the next step is to provide your date of birth to verify your age. You’ll also need to provide your phone number to use two-factor authentication. Another requirement of CreditStrong is that you must be a resident of the United States. CreditStrong asks you to provide your home address to verify this. The next step is to create a password for your account. You’ll be asked to provide your social security number to verify your identity further. After you’ve provided all of this information, you can verify the most important pieces of your identifying information. If any of the information is incorrect, you can edit it.
Next, CreditStrong will let you know if you’re approved for a credit builder loan.
There may be a few options for you to choose from. When you select a product from the drop-down menu, you’ll be able to see more information about that account. Once you’ve selected your account, you can move to the payment section.
How much does CreditStrong cost?
CreditStrong offers a few pricing tiers that you can choose from to fit your goals. It’s important to keep in mind that as you repay your CreditStrong installment loan, you’ll be paying on both the principal and interest. The principal portion of your payment is credited toward your lock placed on your Austin Capital Bank savings account. CreditStrong uses the interest portion of the payment to cover the costs of providing this service to you.
Revolv: These plans offer the fastest way to boost your credit. It offers a $1,000 of revolving credit at a $99 annual fee. You can cancel your account anytime, and there is no termination fee.
Instal & CS Max: The Instal & CS Max plans offer fixed payment terms, and you can cancel anytime with no penalty. There are three payment options for each. INSTAL options include:
- $38/mo for a $1,100 installment account with a repayment term of 36 months
- $48/mo for a $1,000 installment account with a repayment term of 24 months
- $28/mo for a $1,010 installment account with a repayment term of 48 months
CS Max options include:
- $49/mo for a $2,500 installment account with a repayment term of 60 months
- $99/mo for a $5,000 installment account with a repayment term of 60 months
- $199/mo for a $10,000 installment account with a repayment term of 60 months
MAGNUM: These plans are designed to report the largest installment account possible. They allow you to build a history of repayment on a larger credit obligation to boost your credit. Like the other two plans, these plans can have customizable payment terms of up to 120 months and can be canceled at any time with no penalty. There are two payment options:
- $60/mo for a $5,000 installment account
- $175/mo for a $15,000 installment account
CreditStrong also offers Business Credit Builder Accounts to help businesses build a commercial credit profile. These accounts can report up to $50,000 to major credit bureaus with your business’s employee identification number (EIN). There are four account sizes to choose from — $5,000 $10,000, $25,000 or $50,000. Then there are two plans to choose from. Here’s how those plans break down, using a $5,000 account size:
Plan 1: $200 monthly payment with a one-time administrative fee of $549. There’s also a 0% interest rate and a loan term of 25 months.
Plan 2: $100 monthly payment with a one-time admin fee of $349. The interest rate for this account is 0%, and it has a loan term of 50 months.
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CreditStrong features
Let’s take a closer look at the accounts offered by CreditStrong. These plans are designed to help you or your business build credit. Each plan has pros and cons, so you should consider all your options before picking one.
Instal
These personal accounts are offered in amounts between $1,000 and $2,500. You can choose between a plan with a low monthly payment that only builds credit history. Or, you can pay a slightly higher monthly payment to build both credit and savings.
Once you’ve opened your account, you must make your monthly payments on time to build a positive credit history. You can track your FICO score progress for free to see how much your credit is improving. If you’re using a product with a savings account, you’ll be able to unlock the account either when the account is paid off or if you close the account. Accounts can be canceled at any time without penalty.
Magnum
Magnum accounts are personal accounts that allow you to build a larger amount of credit. You can get a $2,000 or $30,000 account with this option. These accounts work the same as the Instal accounts, but you’ll have a loan term of up to 120 months.
A Magnum account might be the right option if you want to apply for a larger personal loan and access credit cards with higher credit limits. One benefit is that they can help you build your credit profile in addition to your credit score. It can also be used if you’re a sole proprietor business owner and want to build your credit for business purposes. You can build your credit using your social security number if you don’t have an EIN for your business.
Revolv
CreditStrong also has a product called Revolv. It is an account that allows you to build revolving credit and can be combined with the Instal and Magnum accounts. It reports a $1,000 revolving line of credit to the three major bureaus.
Business Credit Builder Account
These accounts allow businesses to build a commercial credit profile using their EIN. It works the same as the personal accounts, except that the installment loan funds are locked in a business savings account instead of a personal savings account. You’ll still need to make timely monthly payments to build a positive credit history. Business accounts can also be canceled at any time with no penalty.
Business Credit Builder Accounts are available for $5,000, $10,000, $25,000 or $50,000. There are two plan options to choose from. You can select the account with a lower monthly payment but a higher one-time fee with a 0% interest rate. The upfront cost of this account is higher, but it offers a lower total cost. Since no interest exists, 100% of your monthly payments go toward your principal to build savings.
Alternatively, you can select the account with a slightly higher monthly payment and a $200 lower one-time fee. Both accounts offer a loan term of 25 or 50 months.
Who is CreditStrong best for?
People who need help building their credit
CreditStrong offers an attainable way for people with a bad or no credit history to build a positive credit profile. The installment loans offered through this company can help you build only your credit, or you can build both your credit and a savings account.
People who want a structured way to build savings
CreditStrong can also be useful for people who want a fixed monthly payment that will go toward a savings account they cannot access. The installment loan amount is not available until the loan term is over. As long as you make your monthly payments on time, you’ll be left with a better credit history and your loan amount in savings once you’ve finished paying off your loan.
People with no credit history
When you apply for a Credit Score account, your current credit score is not a factor in whether you’re eligible. That’s why these accounts can be a great opportunity for someone to start building their credit from scratch. The savings account at the end doesn’t hurt, either!
Who shouldn’t use CreditStrong?
People who are looking for a credit repair service
CreditStrong can allow some people to build a positive credit history by making on-time monthly payments. However, it is not a credit repair service and cannot remove negative credit history from your credit profile.
People who don’t have a bank account
CreditStrong can help you build savings in a savings account. However, you must have a valid checking or debit card account to use CreditStrong. The company requires a valid account for payment.
People who can’t make monthly payments
Building a positive credit history includes making on-time payments and showing that you can repay loans responsibly. If you cannot make monthly payments, CreditStrong cannot help you improve your credit, and opening an account might damage your credit.
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Pros and cons
Pros
- You can open personal or business accounts based on the credit profile you want to build.
- There are various plan options, including those with low monthly payments and 0% interest.
- CreditStrong does not run a credit check and does not use your current credit report or credit score to determine your eligibility for an account.
Cons
- CreditStrong cannot guarantee that an account will improve your credit profile.
- You don’t have immediate access to your loan funds.
- CreditStrong cannot help you repair past negative credit history.
CreditStrong vs. competitors
Company | Loan amounts | Monthly payments | Repayment terms |
CreditStrong | $1,000 - $15,000 | $15 - $220 | 24 - 120 months |
Digital Federal Credit Union (DCU) | $500 - $3,000 | $21 - $126 (estimated) | 12 - 24 months |
Republic Bank | $500 - $1,500 | $22 - $129 (approximate) | 12 - 24 months |
Digital Credit Union (DCU)
DCU was chartered in 1979 and is one of New England's largest credit unions. There are branches nationwide in Massachusetts and New Hampshire and Co-OP Shared Branch locations. You can use DCU in all 50 states, even if you don’t live near one of its physical locations.
One of DCU’s products is its Credit Builder Loan. You can get a Credit Builder Loan of between $500 and $3,000. The loans have estimated monthly payments, but you can review your payments and other loan details before accepting a loan. One of the biggest benefits of DCU Credit Builder Loans is that they offer a fixed loan rate as low as 5%. You can also earn dividends on the funds in your DCU Savings account as you work to repay your loan.
Republic Bank
Republic Bank is headquartered in Kentucky, with locations in Indiana, Florida, Tennessee, and Ohio. If you don’t live in one of these states, you may still be able to qualify for one of its credit builder loans, which you can manage online. Republic Bank offers the Credit Builder program that may increase your credit score in as little as 12 months. However, like all credit builder loans, there is no guarantee.
When participating in this program, the money you borrow is placed in a certificate of deposit (CD) and earns interest. Like other loans, you’ll make monthly payments, plus interest, to repay the borrowed amount. Once you’ve paid off the loan, you can leave the funds invested in your CD or withdraw the money.
FAQs
Is a CreditStrong loan better than a secured credit card?
If you’re considering opening a CreditStrong account, you may want to consider alternative options as well. Secured credit cards are another way that you can build or rebuild your credit. With a secured credit card, you need to provide the card issuer with a security deposit. The security deposit is usually equal to the amount of your credit line limit. Like credit builder loans, your credit card issuer will report your on-time payments to the credit bureaus.
Is there a minimum income requirement?
No, there is no minimum income requirement for a CreditStrong account. CreditStrong’s eligibility requirements only require that it can properly identify you as a United States resident over the age of 18.
How do I get good credit?
The short answer is that you should make sure that all of your accounts are in good standing. This includes loan payments such as student loans and auto loans. It also includes credit cards. To keep your accounts in good standing, you need to make on-time payments of at least the minimum amount each month. Other ways that you can improve your credit include keeping low balances on your credit cards and only applying for credit cards or loans when you need them. It’s also important to check your credit card statements regularly to make sure that all of the transactions were made by you. You should also check your credit reports routinely to make sure all of the accounts linked to you are legitimate.
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The bottom line
CreditStrong can be a good resource for people who want to build credit. The good thing about CreditStrong is that you don’t need to have a minimum income or credit score to qualify. All you need is to prove that you are a United States resident, 18 years or older. You can also use your CreditStrong account to build up some savings and improve your credit.
That being said, CreditStrong is not a miracle worker. No guarantee using CreditStrong will improve your credit. You also have to meet certain obligations to ensure that your account remains in good standing. This includes making your monthly payments on time.
If you have no credit or bad credit history, you might want to consider a CreditStrong account. These accounts are 100% legitimate and FDIC-insured. You also have several options, including an account with very low monthly payments.
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Writer
Ashley Hart is a lead copywriter and digital marketing expert covering finance, law, real estate, music, entertainment, health and wellness.
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