For those with limited or negative credit, credit builder loans are an effective way to establish a positive credit history, improve your credit score, and progress toward a stable financial future.
Business Insider's personal finance team compared Credit Strong to the best credit builder loans and found Credit Strong to be an industry leader. It is available in most states, doesn't require a credit check for approval, and offers flexible loan terms and monthly payments. However, there are more affordable options.
Read on to see whether Credit Strong is a good fit for you.
Credit Strong Pros and Cons
Credit Strong offers an assortment of loan options that are widely available in the U.S., but you may have less costly options for building credit. While some of the best credit builder loans cost less than Credit Strong, you can also look into secured credit cards to build credit. Some of the best secured credit cards even come with rewards and perks.
Pros
- Flexible loan options: Credit Strong lets you choose from three different loan terms and monthly payments.
- Reporting to three credit bureaus: Credit Strong reports your payments to all three major credit bureaus so you can improve your credit score across the board.
- No cancellation fee: If your loan doesn't have the impact you want, you can cancel it at any time at no additional cost.
Cons
- Low yield on locked funds: The savings account where your loan funds are kept will earn interest below the national average and far below what you could get from a high-yield savings account or CD.
- Costs: Credit Strong has no monthly fees, but Instal loans charge interest rates over 15% on top of a $15 administrative fee.
- No credit repair: Credit Strong doesn't address existing issues, such as inaccuracies in your credit report or past delinquencies.
Start Building Credit
6.99% - 7.31%
$25 administrative fee and 6.99-7.31% APR
0
Pros
Cons
Applying for a CreditStrong credit builder loan is only a good idea if you know you'll be able to make monthly payments on time and in full. Late or delinquent payments may drop your credit score, defeating the purpose of getting the loan in the first place.
Credit Strong CSMaxCompare Credit Strong
$0-$6.95 monthly + optional $49.95 fee for retroactive reporting
Pros
Cons
Self Rent Reporting reports your rent and other bills to the credit bureaus. This improves your payment history and as a result, your credit score, without needing to take on debt. One of the companies listed in our guide on the best rent reporting services, Self Rent Reporting stands out for offering several credit building perks under one competitive price.
Self Rent Reporting- Reports to all three credit bureaus
- Connects directly to your bank account
- Reports your rent, cell phone, electric, water and gas payments
- $49.95 optional fee for 24 months of retroactive rent and utilities reporting
- $6.95 per month
- Add two years of past payments
- Results vary. You may not receive an improved credit score. Not all lenders use scores impacted by rent/utility payments.
no monthly service fee
up to 4.00% bonus
$0
Pros
Cons
- Access to 40,000 fee-free Allpoint ATMs
- You may overdraw up to $200 from your account with no overdraft fees if you're eligible for Overdrive
- To be eligible for the Overdrive feature, you'll need to receive direct deposits $500 per month
- 3 Savings Pods: You may deposit up to $2,000 in each Savings Pod; Money that is kept in Savings Pods can earn 4.00% bonus
- Round-Ups: Debit card purchases are rounded up to the nearest dollar and the change is deposited into a Savings Pod
- Spending Insights: You can create a budget that keeps track of specific categories of spending; Spending Insights monitors how much you spend and can issue alerts if you are close to your limit
- Cash back: You can earn cash back at 14,000 select stores when you use your debit card; Points be redeemed at the Current Shop for cash
- Issued through Choice Financial Group (Member FDIC)
$0 intro for the first year, then $25
28.24% Variable
No credit and limited credit
Pros
Cons
Getting approved for a credit card can be challenging if you have a negative or non-existent credit history. The Self Visa® Credit Card offers an innovative solution that bypasses the traditional credit card application process, making it easier to get approved while also helping to build or repair your credit. However, getting the card involves several steps, as well as costs you wouldn't incur with other credit cards.
Self Visa® Credit Card- *$0 annual fee for the first year only. $25 annual fee after. 28.24% Variable APR. Limited time offer.
- To be eligible for the Self Secured Visa you first have to have an open Credit Builder Account, make three monthly payments on time, have at least $100 in savings progress and have your account be in good standing
- There are no hard credit checks
- Minimum credit limit is $100
- Minimum security deposit is $100
- Credit limit increased as you make monthly payments towards your Credit Builder Account
Credit Strong Overview
Credit Strong (formerly known as CreditStrong) is a division of Austin Capital Bank, an FDIC-insured community bank headquartered in Austin, Texas. Austin Capital Bank also owns FreeKick, another product that made our list of the best credit builder loans. Boasting a community of over 1 million people and businesses, Credit Strong offers loans and other tools for building credit to customers nationwide (except for those in Vermont and Wisconsin).
To qualify for a Credit Strong account, you must be at least 18 years old and a permanent United States resident with a physical address in the country. You must also have a valid Social Security number or individual taxpayer identification number; an email address; mobile phone number (or Google Voice account); and a checking account, debit card, or prepaid card in good standing.
How Does Credit Strong Work?
Credit Strong offers installment loans to help people build credit and savings. Credit Strong combines credit building with an FDIC-insured savings account available online.
When an installment loan is taken out with Credit Strong, the savings account is locked to secure the loan. The funds in the account are not available for withdrawal until the loan is paid off or matures. At that time, the account balance can be transferred to the borrower.
Credit Strong isn't the cheapest credit builder loan, but it's one of the most widely available, operating in 48 states. With tri-bureau reporting, multiple payment plans, and options for high payment amounts, Credit Strong is a very strong choice for those looking to build credit from scratch.
With no hard credit check and minimal requirements to open an account, Credit Strong claims its application process should take less than five minutes.
Credit Strong Accounts
Credit Strong offers several options across three credit-building products: Instal, Revolv, and CS Max. These accounts aren't mutually exclusive, so you can simultaneously hold an Instal and Revolv account.
Credit Strong Instal and CS Max
Credit Strong Instal is most similar to traditional credit builder loans. It comes in three different varieties, each of which comes with a $15 nonrefundable administrative fee. The loan amounts and interest rates are similar for each one, but the loan terms, monthly payments, and total interest charges differ:
- Instal 28 — $28 monthly payment and 48-month loan term, resulting in a $1,344 reported installment account and $1,010 saved. An interest rate of 15.61% yields approximately $334 in interest charges.
- Instal 38 — $38 monthly payment and 36-month loan term, resulting in a $1,368 reported installment account and $1,100 saved. An interest rate of 15.73% yields approximately $268 in interest charges.
- Instal 48 — $48 monthly payment and 24-month loan term, resulting in a $1,152 reported installment account and $1,000 saved. An interest rate of 15.51% yields approximately $152 in interest charges.
Choosing a lower monthly payment means you'll pay more in interest. The tradeoff is a longer loan term that results in more credit-building potential as long as you make on-time payments.
The first payment of your Instal loan is due one month after opening the account. Credit Strong recommends making monthly payments automatically by linking a checking account, but you can pay manually with a debit or prepaid card (a convenience fee of 2.99% + $0.30 applies).
With each payment, the portion that goes toward the loan principal is deposited in an Austin Capital Bank savings account in your name. Those funds are locked during the loan period and become available once the loan is paid off. While the savings account is FDIC-insured, it earns only 0.01% interest, so the money you put into the loan effectively sits idle.
Credit Strong reports your payments to the three major credit bureaus, adding data points to your payment history, which is the most important component of your credit score. A track record of on-time payments should positively impact your credit, though Credit Strong does not guarantee any particular outcome.
If you find Credit Strong is not for you, you can cancel your account anytime with no early termination fee. If you cancel before your loan matures, you'll receive the principal amount accrued in your savings account. However, a relatively large portion of your early payments go toward interest (rather than the principal), so you may get back much less than what you've put in.
While there's no fee for canceling your loan or paying it off early, late payments by 15 days or more incur a late fee of 4% of your monthly payment. Payments received more than 30 days after they're due are reported as late to the credit bureaus.
Credit Strong CS Max works like its Instal account, just with higher monthly payments and 60-month loan terms. CS Max has four different plans, varying in monthly payment amounts and interest rates. All accounts also charge an initial $25 nonrefundable administrative fee.
- CS Max 49 — $49 monthly payment and 60-month loan term, resulting in $2,940 reported installment account and $2,500 saved. An interest rate of 6.99% yields approximately $440 in interest charges.
- CS Max 99 — $99 monthly payment and 60-month loan term, resulting in $5,940 reported installment account and $5,000 saved. An interest rate of 7.21% yields approximately $940 in interest charges.
- CS Max 199 — $199 monthly payment and 60-month loan term, resulting in a $11,940 reported installment account and $10,000. An interest rate of 7.31% yields approximately $1,940 in interest charges.
With such a high monthly payment over such an extended period, CS Max offers aggressive credit building. However, it's not for most consumers. It's geared toward people with disposable income to set aside for these payments but may have let their credit score fall by the wayside.
Though CS Max interest rates aren't as high as the Instal accounts, those long payment terms result in steeper interest charges.
Credit Strong Revolv
Credit Strong Revolv adds a $500 revolving credit line to your credit report. Revolv account holders don't actually have access to this money. It just adds a revolving account to your credit report.
That said, customers have the option to make regular contributions to a Revolv savings account, which Credit Strong reports to the credit bureau. Three consecutive on-time payments will add $100 to your credit limit, maxing out at $1,000. Once you close the account, you get these contributions back.
If you've paid off installment loans but don't have a credit card, Revolv can build credit by diversifying the types of credit on your credit report. If you already have a credit card, Revolv can add to your existing credit limit, which will help keep your credit utilization ratio low.
The Credit Strong Revolv account doesn't charge interest on your balance but costs $99 annually.
Credit Strong Magnum
Credit Strong's Magnum account is an installment credit builder loan used for the sole purpose of significantly boosting credit scores. It offers a low monthly payment, starting at $30, and is aimed at individuals with cash on hand but no or limited credit history. Credit Strong Magnum allows users to build a large amount of personal credit, even for business purposes, with loan amounts ranging from $2,000 to $30,000.
Credit Strong for Business
Credit Strong offers a business credit builder loan. The loan funds are placed in an FDIC-insured savings account as collateral. Businesses pay a one-time fee and can choose between a 25-month and a 50-month credit builder account. The secured loan is reported to the credit bureaus, helping establish a positive payment history for the business.
Credit Strong Cost and Fees
Credit Strong's costs across its plans are as follows:
| Plan | Setup fee | Interest rate | Interest Paid |
| Credit Strong Revolv | $99 annually | N/A | N/A |
| Instal 28 | $15 one-time | 15.61% | $334 |
| Instal 38 | $15 one-time | 15.73% | $268 |
| Instal 48 | $15 one-time | 15.51% | $152 |
| CS Max 49 | $25 one-time | 6.99% | $440 |
| CS Max 99 | $25 one-time | 7.21% | $940 |
| CS Max 199 | $25 one-time | 7.31% | $1,940 |
| CS Magnum Standard ($2,000) | $25 one-time | 7.86% | 157.20 |
| CS Magnum XL ($15,000) | $25 one-time | 7.15% | 1,072.50 |
Note that these are the interest payments you'd make if you followed the original payment schedule. You can pay more than the minimum each month. Making greater payments will reduce the interest you pay at the cost of the credit history you accumulate.
Credit Strong Reviews and Ratings
Credit Strong reviews are mixed. The company has a Trustpilot rating of 1.4 stars out of 5 across 69 reviews, and its Better Business Bureau has 90 complaints filed in the past three years. More feedback can be found in Google reviews linked to Credit Strong's corporate address in Austin, where the company has a rating of 3.4 stars out of 5.
In negative reviews across all sites, common concerns cited by Credit Strong customers include poor customer service and a lack of results. However, many negative reviews showed a lack of understanding about what Credit Strong loans do and how they work.
Credit Strong Alternatives
Credit Strong is one of the best credit builder loans, offering some of the highest total loan amounts compared to its competitors. See how Credit Strong compares to some of its competitors.
Credit Strong vs Self
Self and Credit Strong are leading providers of credit builder loans. Self is available in all 50 states and Credit Strong is available in 48. The two services are also very similar in fee structure, charging a setup fee and interest on the remaining loan balance.
Credit Strong offers slightly better interest rates and more flexible loan terms. While Credit Strong's Instal loans can last anywhere between 24 to 48 months, Self only offers 24-month loan terms.
However, Self also offers a Self Visa secured card after you make three on-time payments, which is secured by the amount you've already contributed to your credit builder loan. This is a great perk that adds a revolving line of credit to your credit report without a hard inquiry. It's cheaper than Credit Strong's Revolv account, costing just $25 annually compared to Revolv's $99 annual fee. It's also more functional, since you can use the Self Visa card to make purchases.
Read our Self review.
Credit Strong vs DCU Credit Builder
The DCU credit builder is easily one of the best credit builder loans on the market, with just a 5% interest rate and flexible payment terms that go up to 24 months.
The only issue is availability. The credit builder loan is only available to DCU members. If you don't live in certain areas, you'll have to jump through several hoops to join. However, once those hoops have been jumped through, you get access to one of the lowest rates for a credit builder loan.
Credit Strong can't compete with DCU when it comes to cost, but Credit Strong still has longer loan terms as DCU's loans only last up to 24 months.
Read our DCU credit builder loan review.
Why You Should Trust Us: How We Evaluated Credit Strong
At Business Insider, our personal finance section is committed to providing our readers with unbiased, thoroughly researched, and inclusive information to ensure they make well-informed decisions. When evaluating Credit Strong's services, we looked at the following benchmarks to assess its offering:
Accessibility: Credit Strong is available in 48 states and does not require a credit check. It does require that you are over the age of 18, with a social security number, and be a United States resident.
Affordability: Credit Strong is actually not the most affordable credit builder program you can use. Its interest rates are higher than average and there is a $15 administrative fee with each plan.
Variety: Credit Strong has a variety of plans to fit your needs from Credit Strong's Instal and Max accounts to Revolve which is a standout because it is a revolving line of credit that is $99/annually and can help with credit utilization.
Security: Credit Strong takes its users' privacy seriously. It has a privacy policy in place and does not share your information with affiliated or non-affiliated parties.
Customer Reviews: Credit Strong has mixed reviews from customers online. The company has a Trustpilot rating of 1.4 stars out of five across 69 reviews, and its Better Business Bureau has 90 complaints filed in the past three years.
See the full explanation of how we rate credit builder accounts.
FAQs
Does Credit Strong give you money?
Credit Strong does not give you money upfront like a traditional installment loan. Instead, funds paid into your Credit Strong credit builder loan go into a locked savings account that unlocks when your loan matures.
Can I access the money in my Credit Strong savings account before the loan is paid off?
No, you cannot access the money in a Credit Strong savings account before the loan is paid off or the account is closed. The funds are locked in the account to secure the loan you are making payments on, and are only unlocked when the loan is paid off or the account is closed.
How long does Credit Strong take to report?
How long Credit Strong takes to report can vary. Typically, you'll see your Credit Strong account on your credit report within 30-60 days after your first payment. However, that timeline will depend on your credit profile before you start using Credit Strong and whether you have any negative information on your credit report.
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Chime is a financial technology company, not a bank. Banking services provided by The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC.
Out-of-network ATM withdrawal fees may apply except at MoneyPass ATMs in a 7-Eleven, or any Allpoint or Visa Plus Alliance ATM.
Early Pay: Early access to direct deposit funds depends on the timing of the submission of the payment file from the payer. We generally make these funds available on the day the payment file is received, which may be up to 2 days earlier than the scheduled payment date.
The Annual Percentage Yield ("APY") for the Chime Savings Account is variable and may change at any time. The disclosed APY is effective as of September 20, 2023. No minimum balance required. Must have $0.01 in savings to earn interest.
Round Up: Round Ups automatically round up debit card purchases to the nearest dollar and transfer the round up from your Chime Checking Account to your savings account.
SpotMe® on Debit is an optional, no fee overdraft service attached to your Chime Checking Account. To qualify for the SpotMe on Debit service, you must receive $200 or more in qualifying direct deposits to your Chime Checking Account each month and have activated your physical Chime Visa® Debit Card or secured Chime Credit Builder Visa® Credit Card. Qualifying members will be allowed to overdraw their Chime Checking Account for up to $20 on debit card purchases and cash withdrawals initially but may later be eligible for a higher limit of up to $200 or more based on Chime Account history, direct deposit frequency and amount, spending activity and other risk-based factors. The SpotMe on Debit limit will be displayed within the Chime mobile app and is subject to change at any time, at Chime's sole discretion. Although Chime does not charge any overdraft fees for SpotMe on Debit, there may be out-of-network or third-party fees associated with ATM transactions. SpotMe on Debit will not cover any non-debit card transactions, including ACH transfers, Pay Anyone transfers, or Chime Checkbook transactions. SpotMe on Debit Terms and Conditions.
Money added to Credit Builder will be held in a secured account as collateral for your Credit Builder Visa card, which means you can spend up to this amount on your card. This is money you can use to pay off your charges at the end of every month.
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Save When You Get Paid: Save When I Get Paid automatically transfers 10% of your direct deposits of $500 or more from your Checking Account into your savings account.
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