You’ve surely heard about the Credit Strong credit builder loans. They’re everywhere: radio, tv, social media, and the internet.
So how does this company work? Is it a big fat scam? Or is it an honest service that can help you improve your credit scores?
In the sea of all these loan companies out there selling “credit building loans” it can be difficult to see through the haze and identify which are legitimate and which aren’t.
That’s why we’ve done our research and came up with this detailed Credit Strong review.
In this unbiased review of the company, we’re going to dive right in to see what it offers and if it is indeed a scam or not.
Let’s get started.
What is Credit Strong?
Credit Strong is a product of Austin Capital bank. The company provides credit-builder loans solutions to people with a bad credit score or people who want to build their credit without the high potential of risk slowly.
Note: Credit loans are pretty different from personal loans. Personal loans can be returned back over the course of the loan time, so at the end of repayment, you would be out of debt – simple!
However, Credit Strong doesn’t give a loan right away but opens the account. Instead, until the end of your repayment term, you must lock away your loan in a savings account.
More so, payments will still be due every month, which will be reported to the credit bureaus, which will enhance your credit score, and you will still pay interest (as you would with a traditional loan).
After the end of loan repayment due, Credit Strong would unlock your funds which were stumbling there for a long time.
Now, it’s your legitimate money; you can buy anything you want. It means you can spend all the money right away or keep it in the bank; it’s up to you.
Down the road, you’ll have all the money, a nice built-up credit score, and installment credit history, which every credit card company loves to give credit loans.
Where does Credit Strong operate?
At the time of writing this review, Credit Strong is accessible in 47 states. It doesn’t support some popular states like Wisconsin, North Carolina, and Vermont.
Wisconsin’s law requires you to provide spousal support, which is currently unavailable in the Credit Strong online process.
Because of a legal struggle regarding excluding military personnel in North Carolina, they decided not to extend the offer to the general public until the issue with the military was resolved.
Lastly, consumer deposit loans are not permitted in Vermont.
What does Credit Strong offer?
Since 2006, Credit Strong has been serving in the credit score building area.
As I mentioned above, they have given the traditional loan a new shape; they also offer long-term loans, aka solutions for credit builders, instead of just short-term loans that will end you up in debt.
Furthermore, the company has a 12 to 120 months loan plan with an upfront $25k credit builder loan through the MAGNUM package.
It offers loans that are among the last longer and largest available today.
As an added bonus, you can cancel at any time without penalty -which is especially interesting for those looking to build up their credit to get into real estate.
Credit Strong features FICO® Score 8 monthly services as well. It helps you track your credit score growth.
The FICO score is the most accurate score to track your progress, since most top lenders use it to make their lending decisions.
What’s the eligibility criteria to join Credit Strong?
There are no credit score requirements, but that doesn’t mean that you can just sign a document and take the loan.
Before anything, you’ll need to fulfill some requirements to be able to join Credit Strong. Well, they aren’t that much, just some paperwork. And, luckily, you don’t need an income statement from your bank.
- This is what you need to apply to Credit Strong. Take a look:Permanent U.S. resident (eligible states)
- At least 18 years old.
- Must have social security or taxpayer-identification number
- Personal contact information (contact number, and email address) not more than that.
How can you apply to Credit Strong?
Credit Strong’s application process is simple and fast. The process is straightforward and won’t take you hours to complete.
- Visit the official Credit Strong website.
- Click on the Apply now button.
- Select the best product according to your needs.
- Fill out the application.
- After filling the form, Credit Strong’s database will quickly check the bank details provided.
- The authority takes some days to make you eligible to open an account.
- You can instantly start making credit-building payments after being selected.
What’s the price of Credit Strong?
When you use a Credit Strong loan to build your credit score and grow your savings, two expenses are involved: your interest rate and your administrative fee.
Here are the costs of each:
Credit Strong Admin Fee
There’s an admin fee wherever you go in this digital world. At Credit Strong, the admin fee is charged to cover your loan statement and account opening costs.
Further, the fee ranges from $8.95 to $15, totally depending on the plan you choose. Also, it’s a one-time non-refundable payment, and it’s a must to activate your account.
Credit Strong Interest Rate
You will be charged different interest rates depending on which product you select. In addition to your creditworthiness, your loan type and terms may also affect your interest rate.
In fact, 3.74% to 14.89% (3.74% to 13.97% APR) is what you can expect to pay at Credit Strong.
Credit Strong Lost Savings Interest
The Credit Strong credit builder company comes with an additional fee associated with it.
This fee is based on the interest accrued on your savings account. -because during the time that you pay back your debt, you will have the funds in an Austin Capital Bank savings account.
Credit Strong Reviews: Pros & Cons
- No Credit Check
- Build Savings
- Improve your credit score
- Upfront Payments
- Interest Payments
- Service Fees
My Verdict: Should you join Credit Strong?
Credit Strong is an effective option for rebuilding your credit. Be sure to familiarize yourself with all the pricing features before making any such decisions, though.
The Credit Strong program might be worth it if you’re trying to build a perfect credit score and pay off your loan without penalty.