When it comes to financial stability, having a solid credit score is crucial. Your credit score is a determining factor for loan approvals and impacts the interest rates you are offered. The higher your credit score, the more likely you will secure a favorable interest rate and terms.
One of the most effective ways to improve your credit score and financial health is through a credit building app. In this article, we will discuss one of the more popular ones in the market today, Credit Strong. We’ll discuss how it works, why it matters, and provide actionable steps to help you build a solid foundation for your financial future. By the end of this article, you will understand the importance of a Credit Strong review and secured credit card and the steps you can take to achieve financial success.
What is Credit Strong?
Credit Strong is a financial service that allow individuals to build and improve their credit scores installment loans. Unlike traditional loans, Credit Strong’s loans are secured by a savings account, meaning that the borrower makes monthly payments to themselves rather than a lender. As the borrower pays off the installment loan, their savings account grows, and they also improve their credit score.
Credit Strong offers several loan options, each designed to meet the unique needs of different individuals. The company also reports to all three major credit bureaus, which means that as a borrower and Credit Strong customer, you can see a significant impact on your credit score with consistent on-time payments.
Overall, Credit Strong offers a unique and innovative solution to help individuals establish and improve their credit scores. It provides a safe and straightforward way to build credit while growing your savings. If you are looking to improve your credit score or establish credit for the first time, a Credit Strong account may be an excellent option for you to consider.
How Does Credit Strong Work?
Credit Strong works by a credit builder loan offering installment loans that are secured by a savings account. Here’s how it works:
- Application Process: The first step in the Credit Strong process is to apply for a loan. You can do this online through the company’s website or mobile app. You will need to provide some basic information, including your name, address, social security number, and information about your employment and income.
- Loan Approval: Once you have completed the application process, Credit Strong will review your application and credit history to determine your eligibility for a loan. If approved, you will be given loan options based on your credit score, loan amount, and loan term.
- Loan Disbursement: Once you have chosen a loan option, Credit Strong will disburse the loan amount into a savings account held in your name. The savings account is FDIC-insured, meaning your money is safe and secure.
- Monthly Payments: You will then make monthly payments on the loan, which will be automatically deducted from your bank account. As you make these payments, your savings account will grow.
- Credit Reports: Strong Credit reports your monthly payments to all three major credit bureaus – Equifax, Experian, and TransUnion – which helps build your credit score over time.
- Loan Completion: Once you have made all of your payments, the loan will be paid off, and you will have a more robust credit history and a savings account with a balance.
Credit Strong works by offering secured installment loans that help build your credit score while also growing your savings. It’s a straightforward and effective way to establish or improve your creidt history.
Credit Strong Features
Credit Strong offers a variety of features that can help you establish and improve your credit history while also providing you with a security deposit and a savings account that grows over time.
- Secured Loans: Credit Strong offers secured installment loans, which means that the loan is secured by a savings account that is opened in your name. This reduces the risk for the lender and allows you to build your credit score over time.
- Credit Reporting: Credit Strong reports your monthly loan payments to all three major credit bureaus, which can help you establish and improve your credit history.
- Flexible Loan Options: Credit Strong offers various loan options, including loan amounts ranging from $1,000 to $10,000 and loan terms ranging from 12 to 48 months. This lets you find the loan that best fits your needs and budget.
- Competitive Interest Rates: Credit Strong offers competitive interest rates on their loans, which can help you save money over time.
- No Hidden Fees: Credit Strong does not charge any application fees, prepayment penalties, or other hidden fees, which can provide peace of mind when taking out a loan.
- FDIC-Insured Savings Account: The savings account opened in your name is FDIC-insured, meaning your money is safe and secure.
- Mobile App: Credit Strong offers a mobile app that allows you to manage your loan and savings account on the go.
Credit Strong Pricing
Credit Strong offers a range of loan options with competitive interest rates and flexible terms and reports payments to all three major credit bureaus to help improve your credit score.
The company also offers a savings account that grows over time as you make on-time payments on your loan. Here’s a breakdown of Credit Strong’s pricing and fees:
- Loan Amounts: Credit Strong offers loans ranging from $1,000 to $10,000, depending on the borrower’s needs and creditworthiness.
- Loan Terms: Credit Strong offers loan terms ranging from 12 to 48 months, allowing borrowers to choose a period that fits their budget and financial goals.
- Interest Rates: Credit Strong’s interest rates vary depending on the borrower’s creditworthiness, loan term, and loan amount. The rates range from 5.99% to 14.49%, which is competitive compared to other lenders.
- Origination Fees: Credit Strong does not charge any origination fees, meaning borrowers do not have to pay anything upfront to obtain their loan.
- Prepayment Penalty: Credit Strong does not charge any prepayment penalty fees, meaning borrowers can pay off their loans early without additional fees or charges.
- Late Payment Fees: Credit Strong charges a late fee of $5 or 5% of the monthly payment, whichever is greater. This fee is assessed if a borrower’s income is more than ten days late.
- NSF Fees: If a borrower’s payment is returned due to insufficient funds in their bank account, Credit Strong charges a $15 NSF fee.
Bonus and Upsell:
Credit Strong also offers a bonus program called the Credit Strong Referral Program. If you refer a friend to Credit Strong and they sign up for a loan, you’ll receive a $50 bonus and credit check that will be deposited into your savings account. Credit Strong also offers an optional Credit Monitoring service for an additional monthly fee of $14.95, including identity theft protection, credit report monitoring, and credit score tracking.
Credit Strong Alternatives
When it comes to credit-building loans, Credit Strong is just one option among many. Here are four alternatives to consider:
- Self-Lender: Self-Lender offers a credit-building loan that is similar to Credit Strong. Borrowers make monthly payments into a savings account, which are then reported to the credit bureaus.
- Petal: Petal is a credit card company designed for people who are new to credit or have a limited credit history. Petal’s credit card can help individuals build their credit scores over time with responsible use.
- Upgrade: Upgrade offers personal loans that can be used for debt consolidation, home improvement, or other expenses. The loans have fixed interest rates and no prepayment fees, which can be helpful for borrowers who want to pay off their loans early.
- Avant offers personal loans with fixed interest rates and flexible repayment terms. The loans can be used for various purposes, including debt consolidation, home improvement, or medical expenses.
- Kikoff: Kikoff is a financial technology company offering tools and credit-building solutions designed to help individuals establish and improve their credit profiles.
- Sable: Sable is a financial platform offering tools and resources to help people, particularly immigrants, build credit, save money, and achieve their financial goals.
These alternatives to Credit Strong may be a good option for individuals who want to build or improve their credit score in different ways, such as through a credit or debit card, or personal loan. It’s important to compare the terms and fees of each option to find the best fit for your financial needs and goals.
Is Credit Strong Legit or a scam?
Yes, Credit Strong is a legitimate company that operates as a division of Austin Capital Bank, a Texas State Savings Bank that is FDIC-insured. This regulatory oversight of credit builders is provided by both the Federal Deposit Insurance Corporation and the Texas Department of Savings and Mortgage Lending.
Does Credit Strong Require SSN or ITIN?
Yes, Credit Strong requires either a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN) to apply for a credit-building loan. This is because the three credit bureaus use the SSN or ITIN to track a borrower’s credit history and ensure that their credit report is accurate. Additionally, Credit Strong may require other personal information, such as employment and income information, to verify a borrower’s ability to repay the loan.
What are the interest rates offered by Credit Strong?
Credit Strong’s interest rates range from 5.99% to 14.49%, depending on the borrower’s creditworthiness, loan term revolving credit amount, and loan amount.
Does credit Strong charge any fees?
Credit Strong does not charge any origination fees but may set late payment fees and NSF fees if a borrower’s payment is late or returned due to insufficient funds.
Can I apply for a Credit Strong loan with an ITIN instead of an SSN?
Yes, Credit Strong accepts applications from borrowers with either a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN).
How long does it take to receive funds from Credit Strong?
Credit Strong typically disburses funds within 2 to 3 business days of loan approval, depending on the borrower’s bank and credit profile.
What happens if I miss a payment with Credit Strong?
If a borrower misses a payment with Credit Strong, the account may become delinquent, and the credit score may be negatively impacted. Late fees and NSF fees may also apply to the credit limit.
Can I pay off my Credit Strong loan early?
Yes, borrowers can pay off their Credit Strong loan early without any prepayment penalties.
Does Credit Strong offer a grace period for payments?
Credit Strong does not offer a grace period for payments. Payments installment credit only are due on the specified due date each month, and late fees may apply if a payment is missed.
Credit Strong offers a unique and effective way to build or improve your credit score through its credit-building loan program. With flexible loan terms, competitive interest rates, and poor or no credit origination fees, Credit Strong provides a valuable service to those looking to establish or repair their credit. While other credit-building options are available, Credit Strong stands out for its simplicity, transparency, and reliability as a legitimate company backed by a reputable bank. Credit Strong may be worth considering if you’re looking to strengthen your credit history and financial future.