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If you don’t have a credit history or if your credit score is bad, it can be difficult to get a loan or a credit card. Some places might not even look at your application. This can make it hard to get money when you need it. You might feel like there’s no easy way to improve your credit situation. But there is a solution for you to improve your credit score without jumping through a million hoops.
CreditStrong can help you build your credit score and improve your credit history. They report to all three major credit bureaus, so using their services can help you get on the road to financial freedom. Keep reading for our full review of how their program works!
Who is CreditStrong and What Do They Do?
CreditStrong was founded in 2019 by Austin Capital Bank, which is a reputable bank that is FDIC-insured up to $250,000 per account. Its goal is to provide people with poor or no credit the chance for financial success through creative lending options.
By reporting successful transactions to the three credit bureaus: Equifax, Experian, and TransUnion, CreditStrong helps you establish a healthy payment history and may improve your credit.
CreditStrong, helps consumers who have no credit or bad credit. They offer reasonable annual percentage rates (APR) and several plans to choose from. Plus, they help you build up a savings account – which is not something you’ll find with an upfront loan or traditional installment loan.
How Is CreditStrong Different Than Traditional Lenders?
Traditional lenders give you the cash up front and then you make monthly installments toward the original amount plus interest. CreditStrong, however, works inversely: You make monthly payments first and are then given the loan proceeds at the end after completely paying off the balance.
With a traditional loan, you are given the money all at once and then make payments over time. With this option, monthly payments are made which shows your ability to pay just like with a regular loan.
CreditStrong Can Improve Your Credit
CreditStrong can help you build your credit so that you can borrow money in the future. CreditStrong does this by reporting your payment history to the major credit reporting agencies.
A CreditStrong account is a loan and a savings account combined. Your payments are split between how much interest you owe (which is how CreditStrong makes money) and how much principal you pay (which is like making payments to yourself).
Making your payments on time and in full will help you build up your credit score. CreditStrong says that if you do this, you’ll be able to access loans with better terms in the future. However, just like any other credit products, late payments get reported and can hurt your score. So it’s important to make your payments on time and in full.
What is Revolv by CreditStrong?
Revolv, a new service from CreditStrong, is a credit building product that will help build revolving credit with zero interest, without a credit card. Yes, you can grow your revolving credit without paying any interest with Revolv. There’s also no need for a credit card because of this, and they don’t do a credit check when you create your Revolv account. At Austin Capital Bank, it will open a $500 revolving line of credit and savings account.
How does Revolv work?
At CreditStrong, you open a revolving line of credit in your name and couple it with a savings account held at Austin Capital Bank (our 5-star rated community partner bank). Customers set a monthly payment amount/monthly savings commitment within the recommended range to help keep utilization low. There is no minimum savings commitment – it can be $0 if you want. This option is helpful for those trying to impact their credit mix and or credit history.
CreditStrong sets aside money every month from your line of credit and parks it in a savings account. Then the client (you) makes a payment that covers the advance (the monthly savings commitment). If you don’t want to make a payment one month, that’s no problem! Just set the payment to $0, and your Revolv account will stay open.
How much does Revolv cost?
You can join for $99 a year and pay an annual membership fee of $99, which is automatically renewed each year.
Are there any other fees associated with Revolv?
With Revolv, if you borrow money from your revolving line of credit, you won’t have to pay any interest on the amount that you borrow. There are no other fees either. However, if you miss a monthly payment, additional fees and interest may be charged. If your payment is late by more than 15 days, you may also have to pay a late fee.
Is it hard to cancel Revolv?
If you want to cancel your account, you can do so at any time without any fees or penalties. If you don’t want to save money, you can change the commitment amount to $0. However, if you cancel your account, it will be reported to the credit bureaus and this will decrease your total available credit. So it’s a good idea to keep the account open for at least one year after opening it. As long as you keep paying the annual membership fee, your line of credit will stay open and help improve your utilization rate, even if you don’t save money each month.
How much of a credit increase is available from Revolv?
After you make your three consecutive monthly payments on time, CreditStrong will increase your credit limit from $500 to $1,000. However, if you miss a payment within those three months, the process starts over again.
How long can I keep my Revolv account open?
Revolv is a line of credit that allows you to borrow and repay without having to ever close the account. As long as you keep paying your annual subscription fee, your account will remain open and available for use.
Who is Eligible for Revolv from CreditStrong?
CreditStrong loans are designed for people with no credit or bad credit. This means that the eligibility requirements to open an account are lower than with traditional loans. CreditStrong doesn’t check your credit score, but there are a few requirements you must meet to qualify for a CreditStrong loan or revolving line of credit.
In order to use CreditStrong, you must:
- Be 18 years of age or older and a permanent resident of the United States with a physical address in the U.S.
- Have either a valid social security number (SSN) or individual taxpayer identification number (ITIN).
- Own a bank account, debit card, or prepaid card that is in good standing.
- Have either a mobile phone number or Google Voice account.
- Have a valid email address.
How To Get Started
Signing up for Revolv from CreditStrong is a breeze. We’ve made it simple by giving you three easy steps:
3. Create a login for your CreditStrong account. When you create your login, be sure to create a unique password that is 8 characters long and includes both upper and lower case letters, as well as one number and one symbol.
That’s it! After you’ve completed those three easy steps, you’re on your way to building better credit.
Why CreditStrong Is A Great Option To Build Credit
If you’re looking for a way to build your credit history, Revolv from CreditStrong is an excellent option. There are many pros to using this service, including the fact that CreditStrong doesn’t perform a credit check and you can cancel any time. Your monthly payments will be relatively low, and you can make payments to your CreditStrong accounts from your checking account or debit card. Plus, CreditStrong reports to all three major credit bureaus so you can start building better credit today. Sign up now and get started building better credit!
Erika Finn, founder of Stacking Acorns, is an attorney who graduated from law school at University of California, Berkeley. She was a member and editor of the California Law Review and won the Prosser Prize for Legal Accounting. She holds a Master’s Degree from the University of Southern California (USC) and a Bachelor’s degree from Indiana University- Bloomington. Stacking Acorns is a personal finance website for women by women. We help mid-life women achieve financial freedom through real estate investing and other streams of passive income.