CreditStrong Review – Build Credit While You Save
Credit Strong offers credit builder loans. These cash advances are designed to help you improve your credit score. The goal of these loans is not to make you purchase goods but rather to rebuild your credit. It can add each to one’s credit report by signing up for an account.
What is CreditStrong?
Credit Strong is a secured-lending fintech company that assists people in building credit by providing Credit Builder loans. It is a division of Austin Capital Bank founded in January. It is licensed to lend fully across all states except North Carolina, Wisconsin, and Vermont.
With 12 complaints over the years, Credit Strong is not a company with a good track record. However, the company has responded to every complaint they have received, and its BBB profile reflects that.
How Does CreditStrong Work?
Many banks on credit Strong offer three main types of accounts. Each caters to a different purpose: maximizing your savings per month by minimizing your monthly payment and improving your credit score.
- Choose an account type you like and can apply online
- After acceptance, Credit Strong sets aside the amount in a savings account that is locked
- You pay a monthly installment that includes principal and interest
- Credit Strong reports your payment history to every major credit bureau.
- When you have finished the time, you are granted access to the money you have in the savings account.
Some loans, such as credit builders, offer a small number of dollars for a short time. These loans can help you get the cash needed to purchase something today, but they do not pay out in money from your account over a term. If you cannot pay back these loans on time, they become a charge that you must cover out-of-pocket.
- It provides Loan Amounts from $1,000 up to $18,000, and APR is 5.85% to 14.89%.
- Timing is the 12 Months to 10 Years with administration Fees of $8.95 to $25.
- It did not charge an early termination fee and did not have any prepayment penalty.
- On this card, no credit check is required.
- This card is available in all states except North Carolina, Wisconsin, and Vermont.
- No, the minimum income is required, and Reports to Credit Bureaus like Yes, Equifax, Experian, and TransUnion.
- Customer support is available to solve queries.
CreditStrong Pros and Cons
Advantages of Credit Strong
Credit Strong’s credit-builder loans have numerous distinct advantages over the competition on the market. In this article, I will explore a few of these.
- Reports to All Three Credit Bureaus
Credit-reporting agencies are businesses that compile all your information about your credit into the form of a credit report. These reports are the foundation for your credit score, and they serve as the basis for taking out loans. You should know that using one of these institutions’ services is a waste of cash and time if they don’t appear on your credit report.
The Credit Strong service reports your credit score in the form of Experian, Equifax, and TransUnion. It ensures that timely payments are beneficial to you.
- Build a Long Payment History
The ratio of 35 percent is the typical value in FICO Scores. It is especially important when comparing credit scores to determine how one applicant compares to another. If you have a long payment history, it is advantageous over a person without that history.
However, this system is unique because it only allows choosing an amount of total finance over ten years. It is a lot more than the standard credit-builder loan, which lasts for two years.
- No Credit Check
This makes it possible to check your credit score even if you don’t have a history with credit. It also prevents people from being mistakenly asked for their credit scores.
- Cancel Any Time For Free
Credit accounts are a way to track your credit and feel more confident in your ability to steer clear of debt. However, if you get into a situation where you cannot effectively manage your debts, you will do more harm than good to your personal credit score.
- Owned by an Accredited Bank
It is best to only borrow money from a creditworthy person by using a full-service lending process like Austin Capital Bank. Credit Strong is a subsidiary of Austin Capital Bank, which is an accredited and FDIC-insured bank.
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Disadvantages of Credit Strong
- Late Payments Will Hurt Your Credit
As with any other loan, Strong’s Credit Builder Loan offers the opportunity to strengthen your credit score. Keeping up on your payments and utilizing your loan product responsibly could significantly increase your credit ratings.
You may have your account canceled after 30 days of non-payment, even if your payment history is good.
- It’s Technically a Loan, But You Don’t Get Money Upfront
Credit builder loans won’t work if you want to purchase a vehicle, buy a home, or make any other big purchase. These types of loans only help with minor expenses and must pay interest as soon as the loan is over. You can also use credit builders without taking a loan to rebuild your credit.
Eligibility to Apply for Credit Strong
They are the only eligibility requirements that apply to Credit Strong:
- At 18, with a valid U.S. resident with a physical U.S. residence.
- You must have an original Social Security Number or an Individual Taxpayer Identification Number.
- Also, you should have a checking or savings account or debit card, or prepaid credit card in good standing.
- You must have a mobile number and an email address.
Credit Strong will not check your credit during the application process so that you can get approved even with a bad credit score.
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How Much Will CreditStrong Help Improve My Score?
Credit Strong is an online credit builder that verifies the numbers coming from various lenders. It’s not just an online platform that claims can improve credit scores by using it—instead, the company calculates exactly how much a user will have saved on their credit card over time.
It gathered information from over fifty thousand customer accounts and analyzed the impacts on their FICO score. They found that the average account holder improves their FICO score by
- A little more than 25 percentage points in the first 3 months
- About 40 percent during just the nine months that began
- Nearly 70 points after 12 months of punctual payments
When they first began, their credit scores were the only ones with excellent credit scores. Since then, over 10% of the account holders have no past due accounts or other collections. Though the service was inconvenient, customers still received a credit score of 630-650 with 12 payments on time.
Who Should Use CreditStrong?
Credit-builder loans are available because of their design. Since their primary goal is to assist people who have poor or no credit to establish a solid credit score, they won’t be of much use if people couldn’t eligible for the loans. If you don’t have a good credit score, there’s a better alternative to apply for and create a credit score.
CreditStrong Pricing Plans
It has seven plans and more details give in the below section.
|Subscribe 1,000||$15||13.50%||Up to 10 years|
|Subscribe 2,500||$15||7.75%||Up to 10 years|
|Build & Save 1,000||$8.95||14.04%||12 months|
|Build & Save 1,000||$8.95||14.89%||24 months|
|Build & Save 2,000||$8.95||14.43%||24 months|
|MAGNUM® 5,000||$25||5.907%||Up to 10 years|
|MAGNUM® 10,000||$25||5.851%||Up to 10 years|
How Do I Open An Account on CreditStrong?
To open an account with CreditStrong, you must provide personal information like your name, phone number, address, and social security number. You also need to submit a photo of your ID so that we can confirm the identity of the account holder. After providing all this information, you will be able to start a credit card application and get approved for your new card in as few as 7 minutes.
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Is it Safe to Use CreditStrong?
CreditStrong is an online credit card financing company. The company offers a variety of loans that are easy to apply for over the phone or online. These loans can be paid off in monthly payments, with a low-interest rate or by paying off the balance at a specified date. In addition to this service, CreditStrong also provides setup and administration help for business owners who need funding.
Is It Worth Use CreditStrong?
Credit Strong is perfect for improving their credit score and doing the process without a credit screening. It’s easy to get approval for lower-interest loans, with payments later turning into cool cash in your wallet. Compare the interest rates and charges before buying a Credit Builder account from Self. For an in-depth review of both businesses, read this review on Self.
The savings account that earns interest may seem like the right place to put your money, but the cost of loans will destroy your profits. Consider one of our high-yielding saving accounts instead.
How to contact CreditStrong Support?
The Credit Strong customer support office—available by telephone from 7 am to 7 pm, Monday through Friday (CT)—has only three reviews with an average rating of 4.4 stars. It currently has significantly fewer reviews than its competitor SeedFi.
Credit Strong receives mixed customer reviews as with other credit-related products or products. It’s difficult to locate an accurate rating of the reviews, as they tend to contain fake profiles. If you decide the credit builder loan is the best option to take, Credit Strong offers a highly useful product worth looking into. The most important question is to decide if you’d like to take advantage of credit-building loans or not.