Your credit score and credit history play a significant role in both personal and business loan options. A high credit score increases approval odds and helps get a lower rate. Poor credit can cause high rates and fees or even denial on your credit application.
CreditStrong is a credit repair platform that offers a range of services designed to empower you on your credit-building journey. Through its installment credit products, the company allows you to demonstrate responsible financial behavior and improve your creditworthiness.
However, CreditStrong might not be the right fit for everyone. This review covers how CreditStrong works, including the benefits, drawbacks, and application process, so you can decide if it’s right for your needs.
Specifically, we’ll answer these questions and more:
Credit Strong is a credit-building program that aims to help individuals improve their credit scores and establish a positive credit history. Through consistent and responsible use of the CreditStrong account, individuals can gradually increase their credit score.
As they continue demonstrating good financial habits, such as making on-time payments and maintaining low balances, lenders will view them as less risky borrowers. Additionally, CreditStrong provides educational resources and tools to help users understand credit and make informed financial decisions.
A higher credit score opens up doors for better loan terms, lower interest rates, and increased borrowing power in the future. It also helps individuals access other forms of credit like personal loans or mortgages.
CreditStrong launched in 2019 as a combination of credit building and an installment loan account that includes an FDIC-insured savings account. It’s a division of Austin Capital Bank, an independent community bank. Its headquarters are in Austin, Texas.
CreditStrong is a credit-building program that aims to help individuals improve their credit scores. It offers credit builder loans and a revolving line of credit as tools to establish a positive credit history.
CreditStrong’s Revolv product is designed to help lower credit utilization and improve overall credit health. Credit utilization refers to the amount of credit a person uses compared to their total available credit.
With Revolv, individuals can access a revolving line of credit secured by their savings. This product allows individuals to demonstrate responsible credit management and lower their credit utilization ratio.
Here’s how it works:
Credit utilization comprises 30% of FICO credit scores. It’s recommended to keep credit utilization below 30% and ideal utilization is between 2% – 9%. Credit utilization over 50% can significantly lower your credit score. On the other hand, reducing credit utilization is the fastest way to boost your credit score.
CreditStrong’s Instal product is a financial solution designed to help individuals build credit and improve their credit scores. With this product, users can make installment payments on a loan, which are reported to the three major credit bureaus: Experian, Equifax, and TransUnion.
There are three Instal Plans available. Each plan has a one-time $15 fee and a 15.61% APR.
48-month Plan:
36-month Plan:
24-month Plan:
By consistently making these payments on time, individuals can demonstrate their creditworthiness and establish a positive credit history. This can be particularly beneficial for those with limited or no credit history, as it allows them to start building credit.
The CS Max is a credit-builder loan like Instal but with much more significant amounts. CreditStrong markets the product for consumers with the cash but without the credit.
There are four CS Max options, but they only differ in the amounts. All four are 60-month terms with a $25 administrative fee and 6.99% APR.
The available plans are:
CS Max loans are not the right fit for everyone. You’ll need substantial cash flow to sustain the higher monthly payments. These loans might work for you if:
However, these loans will significantly increase your debt-to-income ratio. Therefore, they are not a good fit if you plan to apply for a mortgage. In addition, CS Max loans won’t work if you’re on a tight budget or want to build your savings as you repair credit.
CreditStrong also offers the ability to build business credit using a CreditStrong Business Account. This entails signing up with your Employer Identification Number (EIN) and opening a credit-builder installment loan.
CreditStrong reports these accounts to Equifax, Paynet, and SBFE. It may add reporting to Dun & Bradstreet and Experian in the future. There are several plans available, each with a 25-month term.
Option 1:
| $2,500 Installment Loan | Interest-Free Option | With Interest |
|---|---|---|
| Monthly Payment: | $100 | $115 |
| One-Time Fee: | $349 | $149 |
| Interest Rate: | 0% | 13.26% |
| Total Cost: | $349 | $524 |
Option 2:
| $5,000 Installment Loan | Interest-Free Option | With Interest |
|---|---|---|
| Monthly Payment: | $200 | $220 |
| One-Time Fee: | $549 | $199 |
| Interest Rate: | 0% | 8.96% |
| Total Cost: | $549 | $699 |
Option 3:
| $10,000 Installment Loan | Interest-Free Option | With Interest |
|---|---|---|
| Monthly Payment: | $400 | $440 |
| One-Time Fee: | $749 | $299 |
| Interest Rate: | 0% | 8.96% |
| Total Cost: | $749 | $1,299 |
Option 4:
| $25,000 Installment Loan | Interest-Free Option | With Interest |
|---|---|---|
| Monthly Payment: | $1,000 | $1,100 |
| One-Time Fee: | $749 | $599 |
| Interest Rate: | 0% | 8.96% |
| Total Cost: | $749 | $2,999 |
Improving personal credit can significantly impact small business loan applications. Lenders consider personal credit history and score when evaluating eligibility for a loan.
A solid personal credit profile demonstrates financial responsibility and increases the chances of securing favorable loan terms. Good personal credit also opens up opportunities with suppliers based on a strong financial track record.
CreditStrong offers an alternative approach to building credit with their credit builder loans. These loans do not require a good credit score and allow individuals to establish or rebuild their credit history.
Instead of an upfront deposit like secured credit cards, the loan amount is held in a locked savings account. Monthly payments towards the loan are reported to the major credit bureaus, helping to demonstrate responsible borrowing behavior and build a positive payment history. Once the loan is paid off, individuals have access to the funds in the savings account, providing a financial boost.
Applying to CreditStrong is simple and straightforward. Whether you’re looking to build credit for personal use or your business, CreditStrong has various credit-building options.
Follow these steps to apply.
You’ll start by opening your preferred account type: Revolv, Instal, CS Max, or CreditStrong for Business. Each account type is for a specific credit-improving goal, so ensure you select the plan that aligns with your credit journey.
The next step is choosing your plan. There’s only one Revolv plan. For Instal, CS Max, and Business accounts, select the amount that works for you and the monthly payment you can afford. For business plans, you can also select the interest-free or interest option. You’ll save more money and have a lower monthly payment with interest-free plans, but interest plans carry a lower one-time fee.
The loan proceeds are locked in a savings account to secure the loan. For business loans, the funds are locked into business savings accounts. Each on-time payment helps build payment history and a strong credit profile. Savings payments are optional on Revolv accounts.
You can unlock the savings once the account reaches maturity. Or, you can cancel anytime with no penalty.
CreditStrong offers a range of benefits to help individuals improve their overall financial health and credit score. One of the main advantages is the credit builder loans, designed for building or repairing credit. These loans allow users to demonstrate their ability to manage debt responsibly.
Additionally, CreditStrong provides a revolving line of credit to improve credit utilization. Individuals with limited or no credit history can start building good credit by making regular payments and keeping balances low.
The company also offers business credit builder loans for strengthening commercial profiles. This is particularly beneficial for small business owners or entrepreneurs looking to establish a solid foundation for their company’s financial credibility.
CreditStrong’s services provide practical solutions for overcoming obstacles related to poor or no credit history. Through lines of credit and various types of loans, users can take proactive steps toward building good credit and improving their financial standing.
CreditStrong may not be suitable for individuals with good credit as it primarily focuses on helping those with poor or no credit. If you already have a solid credit score and a positive credit history, you might not benefit as much from using CreditStrong.
Additionally, a monthly fee is required to maintain your account and continue building your credit. This ongoing cost may be an inconvenience or financial burden for some users.
Furthermore, CreditStrong does not offer secured credit cards or traditional installment loans, limiting the options available for individuals looking to establish or rebuild their credit. Another drawback is the lack of specific credit repair services.
While CreditStrong aims to improve overall credit health through responsible financial behavior, it does not directly address existing issues, such as inaccuracies in your report or past delinquencies. If you require assistance repairing your poor credit, you may need to explore other resources or consult a professional credit repair service.
Pros:
Cons:
Yes, CreditStrong is a legitimate company and a division of Austin Capital Bank. It’s also a verified company on Trustpilot. While it’s not Better Business Bureau accredited, it does have a B rating on the watchdog site.
CreditStrong has a mix of reviews, but they tend to be negative. It has a 2.6 out of 5 rating on over 30 Trustpilot reviews, which is considered poor. It has a 1.27 out of 5 rating on over 30 BBB reviews. The company has a 2.7 out of 5 rating on over 330 Google Reviews.
Positive customer reviews frequently mention the positive impact that CreditStrong has had on their credit journey. They appreciate the opportunity to establish good credit with the help of a CreditStrong account. By making regular payments and demonstrating responsible financial behavior, customers have seen improvements in their credit scores and overall creditworthiness.
In contrast, negative reviews may touch upon challenges faced during the application process or issues related to reporting to major credit bureaus. Some customers may have encountered difficulties applying for a CreditStrong account due to specific eligibility requirements or documentation requests.
However, it is important to note that some customers didn’t fully understand the products and how they worked. Several negative reviews came from customers seeking a loan with upfront proceeds or more credit repair services.
CreditStrong may be worth it for specific individuals or businesses, but others may find it too limiting. The company’s products and services could benefit people with no credit history or low credit card limits. However, people with good to excellent credit or significant debt won’t benefit.
In addition, making the most of a CreditStrong account requires financial discipline and the income to afford the monthly payments. Late or missed payments will further damage your credit.
Here are some crucial ways to make CreditStrong work for you.
One of the key features of CreditStrong is its ability to provide access to credit reports and monitor progress in the credit-building journey. This allows users to keep track of their efforts and see how their actions positively impact their credit profile. By regularly checking their credit reports through CreditStrong, individuals can identify any errors or discrepancies and take steps to address them promptly.
For those with poor or limited credit history, using CreditStrong can be an excellent opportunity for growth. Individuals can gradually improve their overall financial standing by responsibly managing debt and making timely payments. This not only opens up opportunities for better interest rates on future loans but also increases the likelihood of being approved.
CreditStrong understands that navigating the world of personal finance can be challenging. That’s why they offer expert assistance and guidance throughout the process. Whether you have questions about your account or need advice on how best to improve your situation, you can count on knowledgeable professionals who support you every step of the way.
Several credit-building platforms in the market offer services to help individuals improve their credit scores. It’s essential to compare different options and evaluate their features and benefits.
When considering CreditStrong as a potential option for building your credit, a few unique features set it apart from other platforms. For instance, CreditStrong offers both personal and business credit builder loans, catering to individuals with different needs.
CreditStrong also provides flexibility in terms of loan amounts and repayment periods. This allows borrowers to choose an option that aligns with their financial situation and goals. Moreover, they have competitive interest rates compared to other platforms in the market.
Furthermore, one advantage of using CreditStrong is its user-friendly interface and intuitive online platform. Applying for a loan and managing payments is straightforward and convenient.
Here are some other credit-building products to consider.
Secured credit cards are helpful for individuals looking to repair their credit. These cards require a security deposit, which serves as collateral if the cardholder fails to make payments.
By responsibly using a secured credit card and making timely payments, individuals can demonstrate their ability to manage credit and build a positive credit history. Over time, this can help improve their credit score and open up opportunities for obtaining unsecured credit cards or other loans with better terms and conditions.
Debt consolidation loans are a type of loan that allows individuals to combine all their existing debts into one single loan. This can be beneficial for those who are struggling to manage multiple debt payments each month.
By consolidating their debts, individuals can often secure a lower interest rate and a longer repayment term, making it easier to pay off their debts over time. Debt consolidation loans can help simplify the repayment process and potentially save individuals money on interest payments.
Debt settlement services offer assistance to individuals who are struggling with overwhelming debt. These services typically involve negotiating with creditors on the debtor’s behalf to settle for a reduced amount of the total debt owed. Debt settlement can provide relief for individuals who cannot pay off their debts in full and can help them avoid bankruptcy. However, it is essential to carefully consider the potential consequences and risks associated with debt settlement before pursuing this option
Yes, there are options for bad credit business loans. While traditional lenders are hesitant, some alternative lenders specialize in providing loans to businesses with less-than-perfect credit. They consider other factors like your business revenue and cash flow to determine eligibility.
You might also be interested in one of the following small business loans.
CreditStrong offers viable credit repair products, but it’s limited in who can benefit from them. Its services would primarily benefit individuals with limited credit history and low credit card debt.
We like that it offers business credit-building products. Not many platforms include options for both personal and business credit.
Based on the available information, we rate CreditStrong at 2.5 out of 5. In some cases, it can help repair credit, but the limitations and costs mean it’s unsuitable for many small business owners.
Disclaimer: The CreditStrong trademark is owned by Austin Capital Bank SSB, and its use herein is for reference purposes only, and it does not indicate sponsorship or endorsement from Austin Capital Bank SSB.
Fraud Disclosure:
Please be aware that individuals have been fraudulently misrepresenting to business owners (and others) that United Capital Source, Inc. (“UCS”) can assist small businesses in receiving government grants and other forgivable business loans, when in fact those grants or loans do not exist or are not available. These individuals have ulterior motives and are engaging in the unauthorized use of the names, trademarks, domain names, and logos of UCS in an attempt to commit fraud upon unsuspecting small business owners.
UCS will never communicate with a prospective client on Facebook, Facebook Messenger, or any other type of social media. Further, any email communications will always come from an official UCS email address and not a Gmail, Yahoo, or other email domain. If you believe you have been contacted by someone posing as an employee of UCS, please email [email protected].
