CreditStrong Review: Pros, Cons, And Alternatives

CreditStrong is a credit building app that offers several different credit building options.

Getting credit can be a classic "chicken and egg" problem. You need to make consistent on-time payments on a loan to build a high credit score. But without a good credit score, how will you ever get approved for such a credit line?

One solution is CreditStrong, which essentially allows you to make "payments" to yourself. And CreditStrong will report your loan payments to the three major credit bureaus to help you build credit. Plus, at the end of your repayment term, you'll have a nice nest egg of cash savings waiting for you! 

Interested? In this article, we’ll look at how it all works.

What Is CreditStrong?

CreditStrong is a secured-lending fintech that helps people build credit with Credit Builder loans. It is a division of Austin Capital Bank, which was founded in January 2006.

Since then, the company has expanded their product offerings so you can have multiple ways to build your credit based on your specific budget and timeline. It offers four ways to build credit; Revolv, Instal, CS Max, and FreeKick. 

CreditStrong is available in all states, except for Vermont and Wisconsin.

They also have another product focused on teenagers called Freekick.

What Do They Offer?

CreditStrong can help you build credit through installment loans and revolving lines of credit. But instead of giving the money to you upfront, it's deposited it into a savings account. Then you begin making fixed monthly payments. 

The loan incurs interest but by making on time payments to your loan, you have a chance to increase your credit score, since CreditStrong will report your payments to all three credit bureaus.

Revolv

Build your revolving credit with Revolv. An revolving credit is similar to the type of credit you would get from a a credit card (versus an installment loan like their other products). Revolv gives you a credit limit and lets you borrow repeatedly and repay it each month—similar to a credit card.

This particular product helps improve your credit utilization. Revolv is meant to give you a variety of a credit mix, which looks better on your credit profile and can ultimately help your score. But by itself, Revolv can improve your payment history, length of credit, amount of credit, and grow your savings. 

You can choose to make payments to your Revolv account which go directly to your Revolve savings. If you make three consecutive on time payments they will get reported to the bureaus. You get every dollar of savings back at the end of the 12 month term (unlike the installment credit builder loans).

You can also increase you line of credit by $250 with every three on-time monthly payments up to a maximum of $3,000.

The subscription cost per year for Revolv is $99.

Instal

This is CreditStong's most basic installment loan. An Instal account can provide you with a loan that can help you build installment credit and make consistent on-time payments over the life of the loan. You choose the monthly payment, credit amount, and the length of time, or term, that best suits your needs. 

There is a one time $15 set up fee, and then you'll be charged interest each month on the loan amount. 

CS Max (Highest-Priced and Most Robust)

The point of CS Max is to demonstrate to lenders that you can responsibly take on a larger installment loan and pay it back. It offers larger credit obligation than the other two products and may come with higher fixed monthly payments.

This tier is meant for the people who have cash but not the credit they need. You'll be taking on a large loan, but won't receive the benefit of it until your loan is paid off. However, at the end of the term you will have saved a significant sum. 

There is a $25 one time set up fee, and then you'll be charged interest every month on the loan amount. 

FreeKick

FreeKick is a savings account for kids that includes identity theft protection. 

This is perfect for parents who want to provide identity theft protection for their kids for free. The account has as long as you maintain a balance of at least $3,000. If you do not maintain a $3,000 there is a fee of $149 per year. 

Not A Credit Repair Service

CreditStrong’s service shouldn’t be confused with a credit repair service. Credit repair services help remove negative marks on a person’s credit report. CreditStrong doesn’t do any credit repair. It's only reporting a customer’s payment history to the three major credit bureaus.

If the customer has good credit management, its reporting can help increase the customer’s credit score. But if you miss payments on your CreditStrong loan, the system can work against you. 

CreditStrong will report delinquent payments to the same three credit bureaus that receive its reports on timely payments. This can actually result in decreasing your credit score. Just as it's important to maintain on-time payments with creditors, you also want to be sure to do the same with CreditStrong.

Loans Without Upfront Money

CreditStrong isn’t a traditional lending service. Not only do you not receive any money upfront, but you also pay fees that are higher than that of a comparable traditional loan. If all you need is a personal loan, you're better off getting an unsecured loan from a bank or credit union.

CreditStrong is specifically designed to help people increase their credit score and establish a positive payment history. 

Another really nice thing about CreditStrong is that you can cancel at any time without penalty. If you cancel before the end of your repayment term, you'll receive a refund for all the money you deposited minus the interest. And as long as your didn't have any late or missed payments before your account was closed, no negative marks will be added to your credit reports. Also, if you decide to pay off your CreditStrong loan early, there is no early payoff fee.

How Fast Will My Credit Score Increase?

There are currently two main competing credit score systems - VantageScore and FICO Score. The FICO score is by far the most widely used and probably the one you’ll want to watch as you work to improve your credit. Here's how to monitor your FICO score.

With either credit scoring system, payment history is an influential scoring factor. If you've never used credit before, it will take at least 6 months for FICO to give you your first credit score. 

However, if you're just looking to slightly improve your score to qualify for a credit card or other form of financing, even just a few on-time payments with CreditStrong could push you across the finish line.

Revolv, the newest product from CreditStrong, has the potential to improve your credit quicker than other options. It improves your credit profile when the $500 line of credit is reported and then with each monthly payment you make, if you choose to do so.  You also get the benefit of 0% utilization which helps your credit profile immediately.

Related: How To Get A Free Credit Score Report

Are There Any Fees?

Yes, CreditStrong currently has three loan products.

• Revolv charges $99 per year.
• Instal charges a one time $15 fee plus monthly interest.
• CS Max charges a one time $25 fee plus monthly interest.

There is also a savings account for children that comes with identity theft called FreeKick. This is free if you maintain a $3,000 balance, but otherwise it is $149 per year. 

How Does CreditStrong Compare?

When compared to Self Financial, CreditStrong's interest rates are favorable while Self's admin fees are a bit lower. But it should be noted that neither of these companies offer any immediate cash access. 

Something different is Credit Karma. Credit Karma is a credit monitoring service that is completely free. So it operates differently than Credit Strong, in that you would need to DIY your own improvements of your credit. But again, it's free.

Here's a closer look at how CreditStrong compares to the competition:

How Do I Open An Account?

You can visit the CreditStrong website to open an account. CreditStrong says that it takes about 5 minutes to complete the application. Your credit will not be affected by applying as CreditStrong will not check your credit. However, you will need to have a valid phone number, SSN or ITIN, checking account, debit card, or prepaid card in good standing in order to qualify.

Is My Money Safe?

Yes, CreditStrong accounts are held in Austin Capital Bank, which is FDIC-insured. FDIC insurance offers up to $250,000 of deposit protection per account. And since none of CreditStrong's loans come in amounts anywhere near that level, your entire account will be insured.

How Do I Contact CreditStrong?

You can contact CreditStrong customer support by phone at (833) 850-0850. Operating hours are Monday – Friday 8 AM to 5 PM (CT). You can also correspond with their team via Live Chat on their website.

Is It Worth It?

For anyone wanting to build credit, CreditStrong could be a good solution. It's easy to get approved for a credit line without a credit check and a significant portion of your "loan" payments later become cool cash in your pocket.

Just make sure to compare CreditStrong's interest rates and fees with other companies that offer Credit Builder accounts like Self. For more a detailed comparison of the two companies, check out our review of Self.

As for the savings account earning interest, don’t expect to make any money. After the loan fees are taken into account, the net will be an overall expense. If interest is what you're after, consider one of our favorite high-yield savings accounts instead.

CreditStrong FAQs

Here are a few of the most common questions that people ask about CreditStrong:

Can you receive any money upfront from CreditStrong?

No, their plans are solely intended to build credit and savings, not to serve as emergency loans.

Does CreditStrong require a security deposit?

No, CreditStrong doesn't work like a secured credit card and doesn't require any upfront deposits.

How does CreditStrong appear on credit reports?

CreditStrong accounts are reported to the credit bureaus as installment loans.

Can you withdraw any built-up savings from your CreditStrong account?

No, withdrawals are not allowed until you reach the end of your payment term or you cancel your account.

CreditStrong Features