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CreditStrong Review 2022: Is It The Right Credit Building Option For You?

By on November 16, 2022 0

GOBanking Rates Score

Quick take: CreditStrong works by taking out a loan, usually between $1,000 and $10,000, from Austin Capital Bank on your behalf. The funds for this loan are then secured in an FDIC-insured savings account. All loan repayments are reported to three major credit bureaus, and once the loan is fully paid off, you have now created credit that increases your credit score.
  • Costs
  • Rates
  • Plans
  • Security

How did we calculate this?

Advantages

  • No credit check
  • No cancellation fees
  • Reports to the three credit bureaus

The inconvenients

  • High administrative costs
  • Can’t get it without bank account or debit card
  • No mobile app

CreditStrong Overview

The credit system can be tricky. How do you get approved for a line of credit when you don’t have a high credit score, but to improve your credit score you need a line of credit? The cycle continues, but it can be broken with CreditStrong because a CreditStrong account works for those with bad or no credit.

CreditStrong does pull hard credit check, in fact they do not require any credit check. This saves you from having to worry about affecting your credit score and information that you don’t have or won’t help you with your application.

CreditStrong Key Features

The consensus is that CreditStrong is better for those trying to build their credit or those with poor or no credit history. You can also secure the loan without getting a credit check. CreditStrong has competitive fees and rates and offers a wide variety of plan options.

Costs

Within the separate plans of CreditStrong, there are different options. Since some fees are monthly and others are upfront, the plan you choose may depend on your financial situation at the time of application. Below, the plans are broken down into tiers with variable fee information.

CreditStrong Plan Costs
Subscribe 100 Monthly cost: $15
Initial administration fee: $15
Subscribe 2500 Monthly cost: $30
Initial administration fee: $15
Build and save 1000 Monthly cost: $48
Initial administration fee: $15
Build and save 2000 Monthly cost: $96
Initial administration fee: $15
Build and save 1100 Monthly cost: $38
Initial administration fee: $15
MAGNUM® 5000 Monthly cost: $55
Initial administration fee: $25
MAGNUM® 10000 Monthly cost: $110
Initial administration fee: $25

Rates

Depending on the plan and loan amount, your interest rate or APR will vary. CreditStrong’s interest rates are competitive with some lenders, although some of their upfront administration fees seem high, but that’s not necessarily abnormal. One advantage is that many plans not only strengthen your credit, but also help you create a savings account. The interest you pay is determined by the amount of your loan and the length of the term in which you are paying it back.

CreditStrong Plan APR and Term
Subscribe 1000 APR: 13.50%
Duration: 10 years
Subscribe 2500 APR: 7.75%
Duration: 10 years
Build and save 1000 APR: 15.51%
Duration: 24 months
Build and save 2000 APR: 14.74%
Duration: 24 months
Build and save 1100 APR: 15.73%
Duration: 36 months
MAGNUM® 5000 APR: 5.91%
Duration: 10 years
MAGNUM® 10000 APR: 5.85%
Duration: 10 years

Plans

CreditStrong offers several plans at different levels that can make it more accessible to get the loan that’s right for you. They also design the types of plans for different needs such as plans that build your credit fast, build your payment history or build big credit. As mentioned above, there are different tiers within each plan, but below is a general breakdown of the plans offered by CreditStrong.

To plan Features
Round. -Best value for money plans and designed to build your credit fast
– Starts repairing bad credit immediately
Install. – Cheapest plan to get started and designed to build your payment history
-Low fees
MAGNUM -Largest amount of credit designed to show that you can handle large amounts of credit
-Good for those with more cash than credit

Security

All CreditStrong accounts are through Austin Capital Bank, which is FDIC insured, so your money is safe. Because it’s FDIC insured, your deposit is protected up to $250,000 per account. You would only have to worry about loans above this amount that are not offered by CreditStrong.

How does CreditStrong compare?

When comparing lending options, it’s important to do your research and find the company and plans that best suit your needs. CreditStrong has a few companies it is often compared to such as SeedFi, MoneyLion or Self.

SeedFi

SeedFi is comparable to CreditStrong in that it works with a similar business model of lending, credit building and savings building.

  • Amount of the loan: $500 to $7,000
  • Credit check: None for the Credit Builder account. Credit check required for Borrow and Grow plan.
  • APR: 12.96% to 29.99%
  • Monthly fee: $1

SilverLion

Like CreditStrong, SilverLion is a credit building company, but they also provide more financial products and services.

  • Amount of the loan: $500 to $1,000
  • Credit check: Yes
  • APR: 11.99%
  • Monthly fee: $19.99

Self

Although Self and CreditStrong are very similar, Self generally seems to offer lower costs on the plans.

  • Amount of the loan: $520 to $1,663
  • Credit check: Yes
  • APR: 12.44% to 15.97%
  • Monthly fee: $9

How to apply for CreditStrong

To create an account with CreditStrong, you can simply visit their website. Within minutes, you can apply without affecting your credit. When applying, you will need to have either a active prepaid card, current account Where debit card. The app doesn’t take long, but just in case you need to leave before you’re done, you can just log back in later and pick up where you left off as the information will have been saved under your login.

A minor drawback is that CreditStrong does not have a mobile app, which means that all applications and subsequent transactions made online would have to be done through the website. It’s not the end of the world, as you can still access the website through your phone, but it’s a little less user-friendly.

Who CreditStrong is best for

If you are unhappy with your current credit situation or have no credit to speak of, CreditStrong may be the right decision for you. You can build your credit fairly quickly as well as save money on your payments. There are fees and interest rates to consider, so be sure to research which plan and loan would be best for you. If you decide to go with CreditStrong, on-time payments will be the secret to building a successful credit history.

Final grip

CreditStrong offers a good system with many advantages. Because it’s FDIC-insured, you can rest easy knowing your money is safe and your monthly payments will be reported to all three major credit bureaus. If you’re looking to get your credit back on track or start building your credit initially, CreditStrong might be worth checking out.

CreditStrong FAQs

  • Is CreditStrong legit?
    • A CreditStrong account is a legitimate secure consumer installment loan as well as an FDIC insured savings account.
  • Is CreditStrong pulling hard?
    • CreditStrong does not make any effort or investigation to open the account as it does not require an initial credit check. This means that opting for a CreditStrong account will not affect your credit.
  • What is a CreditStrong account?
    • A CreditStrong account is a consumer-secured installment loan as well as an FDIC-insured savings account.
  • How does CreditStrong help your credit?
    • All loan payments at CreditStrong are reported to three major credit bureaus, and once the loan is fully paid off, you have now established a credit history. By making these monthly payments and repaying the loan, you can significantly increase your credit score, which is helpful if you have little or no credit. This can benefit your overall FICO score, which is determined by payment history, amount of credit, length of history, and credit mix.
  • What other credit companies are there?
    • Many financial institutions offer lines of credit or credit building opportunities, companies with similar business models to CreditStrong are MoneyLion, Self or SeedFi. Fees, APRs, loan amounts, and length of terms vary by company and plan.
  • What is the difference between a soft pull credit application and a hard pull credit application?
    • Credit checks can be problematic because they can affect your credit whenever information is requested by an individual or institution. The difference between a hard draw request and a soft draw request is that a hard draw will affect your credit score, while a soft draw request will not.
  • How long will it take to apply for a CreditStrong account?
    • According to the CreditStrong website, the application process takes about five minutes. If for some reason you cannot complete the application in one sitting, your information will be saved under your username and you can complete the application at another time.

Information is accurate as of November 10, 2022.

Editorial note: This content is not provided by any entity covered by this article. Any opinions, analyses, criticisms, evaluations, or recommendations expressed in this article are those of the author alone and have not been reviewed, endorsed, or otherwise endorsed by any entity named in this article.

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