If you are looking for a way to raise your credit score, a credit builder loan may help. Credit Strong is one of the most popular options to choose from. But can Credit Strong really help improve your credit score?
What is Credit Strong Work?
A credit builder loan is designed to help people with no credit or bad credit. It’s a unique way to build credit without getting a secured credit card or spending a lot of money upfront. It’s a fusion of a secured installment loan and a savings account. While you have an account, you build both your credit history and savings. The best part, there is no credit check.
Powered by Auston Capital Bank, you will receive an installment loan. However, you won’t receive the funds up front. The funds are placed into a savings account to secure the loan. You many monthly payment based on their fixed monthly pricing. This includes the principal and the interest. The principal is then applied to your Credit Strong savings account. They make money on the interest of the loan. While making your payments, they are reported to all three major credit bureaus. Once your loan is paid in full, the funds in your Credit Strong savings account is available for you to withdraw.
How Can Credit Strong Help Build Credit?
There are several major factors that affect your credit score. They include; payment history, credit utilization, credit age, credit mix and credit inquiries. Your payment history and credit utilization make up more than half your score. Next are the credit age and types of credit. Credit Strong can help with all these.
Since Credit Strong reports to the credit bureaus, it can help with your payment history. In order for this to work, you must choose a plan you can afford and make your payments on time. As these payments are being made, your credit utilization will decrease since you are lowering the amount owed on the loan. Once your loan is complete and you have the funds, you can use those funds to lower the balances on your other accounts.
Next, is the credit mix. Credit Strong has different plans depending on what you need. Let’s break it down. To enhance your credit score, you’ll need both installment and revolving credit. Revolving credit are accounts such as credit cards. Installment credit refers to car loans and personal loans.
Finally, since there is no credit check, there won’t be a hard pull on your credit report. Having too many hard pulls on your credit report can decrease your score.
Revolv
If you need revolving credit, Revolv can help you. Revolv accounts work like a digital credit card with 0% APR (interest rate). It can help build your payment history, improve your credit mix and add a $500 to $1,000 credit line to your credit report. You’ll start with a $500 credit line on your report. Make three payments on time and Credit Strong will increase your credit limit by $100 up to $1,000. This account can also help improve your credit utilization. There is a $99 yearly subscription fee and an optional monthly savings commitment. You can cancel anytime.
Instal
If you have a credit card, but need a personal loan reported, Instal can help. Instal accounts report a $1,000 to $2,500 installment loan on your credit report. You pick the plan that you can afford and make payments. Once the loan is paid off, you’ll receive the funds. Each includes a non-refundable administrative fee to create an account. Below are the prices for the Build and Build and Save accounts.
Build
| Build 1000 | Build 2500 | |
|---|---|---|
| Amount Reported | $1,000 | $2,500 |
| Monthly Payment | as low as $15.00 | as low as $30.00 |
| Time Frame | up to 120 months | up to 120 months |
| Admin Fee | $15.00 | $15.00 |
| APR | 13.5% | 7.75% |
Build and Save
| Build & Save 1000 | Build & Save 2000 | Build & Save 1100 | |
|---|---|---|---|
| Amount Reported | $1,000 | $2,000 | $1,100 |
| Monthly Payment | $48.00 | $96.00 | $38.00 |
| Time Frame | 24 months | 24 months | 36 months |
| Admin Fee | $15.00 | $15.00 | $15.00 |
| APR | 15.51% | 14.74% | 15.73% |
Magnum
Magnum account are for people who make good money, but need to improve their credit. With this account, you get the largest and longest accounts added to your credit report. This account may be for you if you want to apply for a large personal loan, a mortgage or get higher limits on your credit cards. Maybe you are a business owner and want to use your personal credit for business. Credit Strong also has options for people to help build business credit.
The purpose is to help show creditors that you have the ability to reliably pay larger credit obligation with higher monthly payments. Credit Strong will report up to $10,000 of installment credit to the three major credit bureaus. Each plan includes a non-refundable administrative fee to create an account.
| Magnum 5000 | Magnum 10000 | |
|---|---|---|
| Amount Reported | $5,000 | $10,000 |
| Monthly Payment | $55.00 | $110.00 |
| Time Frame | up to 120 months | up to 120 months |
| Admin Fee | $25.00 | $25.00 |
| APR | 5.907% | 5.851% |
Pros
- No credit check
- Cancel anytime
- Low start up fee
- Helps to build savings
- Reports to Experian, TransUnion and Equifax
- Free FICO score each month
Cons
- Can’t access funds until the loan is complete
- The amount you pay over time is expensive
Summary
Credit Strong can help you build credit and improve your credit score. However, for it to benefit you, you must make your payments on time. It is a low cost solution that helps you build a nest egg for the future. Customers who have completed the process have seen increases in their credit score.
