StellarFi Review – Pay Bills and Build Your Credit
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Fast Facts
Service:
Reports utility payments to Experian and Equifax.
Cost:
$45.99-$119.88 annually.
Credit check:
Nil
Suitable for:
Card and digital payments only.
TrustPilot rating:
4.2
A good credit score is not merely a number but a gateway to opportunities like homeownership, loans, and financial stability. The traditional credit-building model used by lenders today typically prioritizes credit cards and loans, often overlooking the everyday financial responsibilities equally pivotal in demonstrating fiscal responsibility.
Timely payments for monthly bills like rent, utilities, and even streaming services are fundamental indicators of financial reliability, yet financial institutions typically do not factor these transactions into credit scores under conventional methods.
Enter StellarFi, a pioneering initiative looking to revolutionize credit building.
Jump To
What is StellarFi?
StellarFi is a public benefit corporation focused on making good credit more accessible. It offers a credit-building tool that turns ordinary bill payments — such as streaming services, utilities, and rent — into credit-builders by reporting these payments to Experian and Equifax.
The company says its mission is to provide a path to financial wellness for the over 130 million Americans who currently lack credit, which is crucial for homeownership and financial stability. The service is designed to be fully accessible, with no deposits, interest fees, added debt, or barriers.
On TrustPilot, StellarFi boasts a 4.2-star rating based on over 150 reviews.
Here’s what sets it apart:
- Innovative method. StellarFi is the first tool that converts everyday bill payments into opportunities for building credit.
- Modern credit-building. The company aims to update the traditional method of credit-building by removing unnecessary obstacles and making credit more accessible.
- Inclusive focus. StellarFi seeks to address the credit gap for marginalized groups, including LGBTQ communities, BIPOC Americans, low-income individuals, people with disabilities, and immigrants, who often face difficulties with traditional credit-building methods.
StellarFi ensures the safety and security of your data using advanced security protocols and 256 AES encryption. It does not store any financial information but uses random digital tokens to represent your account at your financial institution. In addition, virtual cards are used to pay your bills, protect your privacy, and safeguard your real-world data.
Turning to customer support, the company assists members through chat and email.
Raise Your Credit 80 points*
- 5 star service trusted by over 450,000 members
- Have processed over $11,000,000 in bill payments for members
- No deposit, no credit check, no interest
- New member promotions available
*Potential increase based on StellarFi member data. StellarFi numbers observed an average of 80 points VantageScore® 3.0 increase during a member’s lifetime. Score increase based on members with an incoming score range of 300-499 pts, who made regular on-time payments, with regular on-time payments. Results may vary.
How does StellarFi work?
StellarFi has developed a system to positively influence your credit score by reporting bill payments directly to credit bureaus, similar to a line of credit.
Here's how it works:
- Connect a bank account that you normally use to pay your bills.
- Choose the bills you want to pay through StellarFi and link them in the dashboard.
- When the due date arrives for a bill, or when you want to manually pay a bill, the company will check to see if your bank account balance is sufficient to cover the amount of the linked bill.
- If your account balance is sufficient, StellarFi pays your bill.
- At the same time, you’ll automatically authorize a debit from your linked bank account for the bill amount.
- At least once a month, StellarFi batch reports your StellarFi Limit (based on the dollar amount of bills you’ve paid through StellarFi) to Experian and Equifax.
Eligibility criteria
To apply for StellarFi, applicants must be at least 18 years old and a resident of the U.S. with a valid Social Security number.
Verification may involve submitting additional documentation such as a state-issued ID or driver's license, Social Security card, or utility bill to confirm identity. If documentation is needed, applicants will be notified during the verification process.
StellarFi features
Add and pay bills
Using the StellarFi virtual bill pay card, you can set up automatic payments for your bills, including utilities, rent, and streaming services. Once you add your bills and link them to the virtual card, StellarFi ensures they are paid on time each month.
The system is designed to handle the payments automatically, so you don't have to worry about missing due dates or making manual payments. StellarFi then reports these on-time payments to Experian and Equifax every month.
Build credit score
Your credit score improves as StellarFi helps build a solid payment history and optimize credit utilization. Payment history is a critical factor in credit scoring models, accounting for a significant portion of your score. By paying bills through StellarFi, you establish a track record of on-time payments, which can significantly boost your credit score.
Additionally, the more bills you pay through StellarFi, the more frequent and robust the reporting to credit bureaus.
StellarFi reporting
While StellarFi is not a traditional credit card, it appears on your credit reports similarly to a line of credit. This means that the payments made through StellarFi are recognized as regular credit activity, contributing to your overall credit profile. This reporting method allows the positive payment history of bills typically not included in credit reports to be reflected.
StellarFi’s impact on credit scores
StellarFi impacts your credit scores in several ways:
- On-time payments. By ensuring that your bill payments are made on time and reporting these to the credit bureaus, StellarFi helps build a strong payment history, a major factor in FICO and VantageScore models.
- Credit utilization optimization. StellarFi reports a higher credit limit based on the total dollar amount of bills paid through their system. This higher limit can help reduce your overall credit utilization ratio (the amount of credit used compared to the total credit available), another critical factor in credit scoring.
- Improving credit mix. Adding a StellarFi account to your credit report can enhance your credit mix. Credit scoring models favor a diverse range of credit accounts (such as credit cards, loans, and other lines of credit), and StellarFi’s reporting adds another type of credit to your profile.
Raise Your Credit 80 points*
- 5 star service trusted by over 450,000 members
- Have processed over $11,000,000 in bill payments for members
- No deposit, no credit check, no interest
- New member promotions available
*Potential increase based on StellarFi member data. StellarFi numbers observed an average of 80 points VantageScore® 3.0 increase during a member’s lifetime. Score increase based on members with an incoming score range of 300-499 pts, who made regular on-time payments, with regular on-time payments. Results may vary.
How much does StellarFi cost?
StellarFi currently offers two membership plans:
Lite
The Lite plan costs $45.99 annually, offering a bundle value of $59.88 annually. It features a $500 bill pay limit, reported to major credit bureaus, making it suitable for paying smaller bills. Additionally, subscribers receive three months free. Enrollment is straightforward, with no credit check required.
Prime
The Prime plan costs $89.99 annually, offering a bundle value of $119.88 annually. It includes an introductory offer of $0.99 for the first month. This plan features a bill pay limit of up to $25,000, which is reported to major credit bureaus. Enrollment is simple and requires no credit check.
Premium (coming soon)
When launched, the Premium plan is expected to cost $269.99 per year, offering a bundle value of $359.88 per year. This plan will feature the highest bill pay limit, which will be reported to major credit bureaus, making it suitable for paying unlimited bills on your schedule. Enrollment will be straightforward, with no credit check required.
Who is StellarFi suitable for?
StellarFi is suitable for individuals who:
- Need to build or improve credit. It's ideal for those looking to establish a credit history or improve their credit score by reporting regular bill payments to credit bureaus.
- Prefer automated payment systems. People who prefer the convenience of automatic bill payments without the risk of missing due dates.
- Seek financial inclusivity. It caters to marginalized groups and individuals with limited access to traditional credit-building methods.
Who shouldn't use StellarFi?
StellarFi may not be suitable for individuals who:
- Already have established credit. If someone already has a strong credit history and a high credit score, they may not benefit as much from StellarFi's credit-building features.
- Prefer cash transactions. Those who prefer using cash for most transactions and bills may find the digital and card-based payment system less convenient.
- Have privacy concerns. Although StellarFi uses advanced security measures, individuals uncomfortable with virtual cards and tokenized financial data may prefer traditional payment methods.
Pros and cons
Pros
- Credit-building tool. StellarFi offers a unique method for building credit by reporting regular bill payments to major credit bureaus.
- Accessibility. Designed to be inclusive, StellarFi caters to individuals facing barriers to traditional credit avenues, such as marginalized groups and those with limited credit history.
- Security. Utilizes advanced security protocols like 256 AES encryption and digital tokens to protect user data, ensuring privacy while handling financial transactions.
- Convenience. Automates bill payments through virtual bill pay cards, reducing the risk of missed payments and simplifying financial management.
- Transparent pricing. Offers clear membership plans with competitive pricing, including a free trial period and no hidden fees.
Cons
- Dependency on digital payments. Users who prefer cash transactions or are uncomfortable with virtual cards and tokenized financial data may find the digital payment system less convenient.
- Verification process. Requires documentation such as a state-issued ID, Social Security card, or utility bill for identity verification, which may be an additional step for some applicants.
Raise Your Credit 80 points*
- 5 star service trusted by over 450,000 members
- Have processed over $11,000,000 in bill payments for members
- No deposit, no credit check, no interest
- New member promotions available
*Potential increase based on StellarFi member data. StellarFi numbers observed an average of 80 points VantageScore® 3.0 increase during a member’s lifetime. Score increase based on members with an incoming score range of 300-499 pts, who made regular on-time payments, with regular on-time payments. Results may vary.
StellarFi vs competitors
Feature | StellarFi | Kikoff | MoneyLion | Brigit |
Primary Service | Credit building through bill payments | Credit building through line of credit | Credit building loans and financial services | Credit building through installment loans |
Cost | Starts $45.99 per year | $5/month | $19.99/month for Credit Builder Plus | $9.99/month for Brigit Plus |
Credit Check | No | No | No | No |
Reporting to Credit Bureaus | Experian, Equifax | Equifax, Experian, TransUnion | Equifax, Experian, TransUnion | Equifax, Experian, TransUnion |
Funds Availability | N/A | Immediate access to line of credit | Up to 3 days (instant with MoneyLion account) | N/A (funds are deposited into a savings account) |
Kikoff
When comparing Kikoff and StellarFi, both services aim to help users build credit, but they do so in distinctly different ways, catering to different financial needs and preferences.
Kikoff offers a $750 revolving credit line that does not require a credit check, making it accessible for those with no or poor credit. Users can only use this credit line to make purchases in the Kikoff store, which primarily offers wellness and personal finance e-books. Kikoff's major advantage lies in its simplicity and affordability, with no interest rates, annual fees, or hidden charges. It reports payment history to all three major credit bureaus (Equifax, Experian, and TransUnion), helping users build credit by making small, manageable payments on their purchases.
StellarFi, on the other hand, takes a more comprehensive approach by transforming everyday bill payments into credit-building opportunities. Unlike Kikoff, StellarFi reports payments for essentials like rent, utilities, and streaming services to Experian and Equifax. This method broadens the scope of transactions that contribute to one's credit history, making it easier for users to demonstrate financial responsibility. StellarFi is particularly focused on inclusivity, aiming to help marginalized groups and those with limited access to traditional credit-building methods. It also emphasizes security with advanced encryption protocols and virtual cards for bill payments.
MoneyLion
MoneyLion provides a comprehensive financial platform with a variety of features, including a credit builder loan, mobile banking, cash advances, cryptocurrency investments, and automated investing. The Credit Builder Plus program offers loans up to $1,000 without a credit check, making it accessible for those with no or poor credit. However, this service requires a $19.99 monthly membership fee. Users benefit from instant delivery of funds if deposited into a MoneyLion account, free credit monitoring, and a savings component where part of the loan is held in a credit reserve account. MoneyLion’s extensive app functionality, including spending tracking and debit card rewards, makes it a robust option for those looking to manage multiple aspects of their finances.
StellarFi, on the other hand, focuses specifically on leveraging everyday bill payments to build credit. By reporting payments for rent, utilities, and subscriptions to Experian and Equifax, StellarFi helps users improve their credit scores through transactions they are already making. This method is particularly advantageous for those who might struggle to make additional payments specifically for credit-building purposes.
Brigit
Brigit offers a comprehensive service to build and improve credit scores through its Credit Builder feature. By joining the Brigit Plus membership for $9.99 per month, users can obtain an interest-free installment loan without a credit check. The loan funds are deposited into a savings account, and monthly payments, reported to all three major credit bureaus, help build credit. Additionally, Brigit offers up to $250 in cash advances, identity theft protection, and financial insights. However, the service lacks phone support, relying entirely on online customer service.
StellarFi, in contrast, focuses on building credit through everyday bill payments. By reporting payments for rent, utilities, and subscriptions to Experian and Equifax, StellarFi helps users improve their credit scores through transactions they already make.
Raise Your Credit 80 points*
- 5 star service trusted by over 450,000 members
- Have processed over $11,000,000 in bill payments for members
- No deposit, no credit check, no interest
- New member promotions available
*Potential increase based on StellarFi member data. StellarFi numbers observed an average of 80 points VantageScore® 3.0 increase during a member’s lifetime. Score increase based on members with an incoming score range of 300-499 pts, who made regular on-time payments, with regular on-time payments. Results may vary.
FAQs
What is StellarFi?
StellarFi is a public benefit corporation dedicated to making good credit more accessible. It offers a credit-building tool that turns everyday bill payments, such as utilities and rent, into opportunities to strengthen your credit score by reporting these payments to major credit bureaus like Experian and Equifax.
How does StellarFi work?
StellarFi works by allowing users to connect their bank accounts and choose bills to pay through its platform. These payments are made using virtual bill pay cards, ensuring bills are paid on time each month. StellarFi then reports these on-time payments to credit bureaus, helping to build a positive credit history.
How much does StellarFi cost?
StellarFi currently offers two membership plans:
Lite: Costs $45.99 per year, includes a $500 bill pay limit reported to major credit bureaus, and is suitable for smaller bills.
Prime: Costs $89.99 per year with an introductory offer of $0.99 for the first month, features a bill pay limit of up to $25,000 reported to major credit bureaus, and is ideal for paying unlimited bills.
What impact does StellarFi have on credit scores?
StellarFi positively impacts credit scores by reporting on-time bill payments and optimizing credit utilization. This helps to build a strong payment history and improve credit scores over time, making it easier to qualify for loans, mortgages, and other financial opportunities.
The bottom line
StellarFi represents a progressive approach to credit-building, offering a unique tool that transforms everyday bill payments into opportunities to strengthen one's credit profile. By reporting these payments to major credit bureaus, StellarFi empowers individuals who may face barriers to traditional credit avenues to enhance financial inclusion for all.
While suitable for those seeking to establish or improve their credit scores through automated and secure payment methods, StellarFi may not be as advantageous for individuals already well-established in their credit histories or those who prefer alternative payment strategies.
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Writer
Jasir Jawaid is Joy Wallet's Assistant Editor. He has more than 13 years of experience as a journalist covering Wall Street, equities, financial policy and regulation, and cryptocurrency and blockchain.
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