Credit Strong Review (2022)

When I walked into FinCon 2018, I had never heard of the concept of a credit builder loan. Thus my mind was slightly blown after I discovered Self Lender (now known as Self). Funny enough, 2019’s FinCon introduced me to another credit building loan company: Credit Strong.

Like with Self, Credit Strong features a number of loan options to meet the needs of different individuals. What’s more, the company also offers some unique accounts that provide even more potential paths for those in need of some credit. So how does it all work? Let’s take a look at some common questions about Credit Strong and review their current credit builder loan account line-up.

What is Credit Strong and How Does it Work?

Is Credit Strong legit?

Credit Strong is a division of Austin Capital Bank. As their site notes, the bank is a “5-star rated FDIC insured Texas State Savings Bank.” Being FDIC-insured is not only important as there is a saving component to their loans (more on that later) but it also means that the company is subject to a high-level of oversight and regulation. In other words, yes, they are legitimate.

How does Credit Strong work?

The company offers what is commonly known as credit builder loans. Instead of a traditional personal loan where you receive the funds you’re borrowing upfront, Credit Strong places your loaned funds into a savings account that is only unlocked once you’ve paid in full. While this might seem like a strange way to save, the actual purpose is to help establish a positive payment history, which could lift your credit score. To help achieve this goal, Credit Strong reports to all three major credit bureaus (TransUnion, Equifax, and Experian).

How much can Credit Strong help raise my scores?

Obviously the big question surrounding credit builder loans is “how much of an increase in credit score is possible?” Unfortunately there are far too many factors at play (including your starting score, length of your loan, etc.) to truly give an answer. However, since payment history accounts for 35% of your FICO credit score, making on-time payments on your Credit Strong account should definitely help.

Are there restrictions on who can use Credit Strong?

In order to apply for a Credit Strong account, users must:

  • Be at least 18 years old
  • Be a permanent U.S. resident with a physical U.S. address
  • Have a valid social security number
  • Have a valid checking account, debit card, or prepaid card
  • Have a mobile phone number or Google Voice account
  • Have an email address

In terms of approvals, Credit Strong says that they “use a database of past bank account behavior to determine your eligibility for the Credit Strong account.” They also explicitly state that they do not use your credit score in their decision process and that there is no minimum income requirement.

Also of note, Credit Strong accounts are currently unavailable to residents in Wisconsin and Vermont due to various regulations in those states. Previously, the service was also unavailable in North Carolina, but it seems that is no longer the case.

Will applying for Credit Stong impact my credit score?

The company does not perform a hard inquiry on your account, however they do note that some users may see a slight dip in initial credit score due to their age of credit decreasing. However they write, “In this case, it’s typical for your credit score to quickly rebound and increase with on-time payment history for the Credit Strong account loan.”

Can I pay off my Credit Strong loan early?

Individuals are welcome to pay back their Credit Strong loan early and will not incur any penalties for doing so. That said, it is worth noting that doing so will result in a truncated payment history, meaning that individuals might not get the full benefit of what the account is intended for.

How does Credit Strong compare to Self?

While Credit Strong and Self both offer similar products, there are a couple of notable differences. For one, while Self places funds into a certificate of deposit (CD), Credit Strong utilizes savings accounts. 

Previously, another difference between the two was the administrative fee the two services charged. Self currently charges a one-time administration fee of $9 for all of its loans (down from the previous $15 loan fee). Meanwhile Credit Strong’s admin fees vary by product, ranging from $15 for the Subscribe and Build & Save options all the way up to $25 for the Magnum accounts.

Credit Strong Account Options and Pricing

Like with similar services, the amount you pay for a Credit Strong account will depend on which option you choose. On top of that, looking at their FAQ, it seems Credit Strong only recently switched up their account options. Previously the service had a total of six offerings with terms ranging from 12 to 24 months and monthly payments between $24 and $150. Now this line-up has expanded to seven products, with some taking on a slightly different structure.

Before we take a closer look at each set of plans, these helpful charts from Credit Strong will help you better understand the costs associated with each:

Subscribe 1000 and Subscribe 2500 plans

Those in search of a low monthly payment may be interested in Credit Strong’s Subscribe 1000 or Subscribe 2500. As these names imply, the former shows as a $1,000 loan on your credit report while the later shows as $2,500. These accounts allow customers to build up to 120 months of payment history for $15 or $30 a month respectively plus a one-time $15 admin fee.

I’ll admit that I was a bit confused by this option at first. For one, Credit Strong previously said that these options have “$X Credit Line Reported.” This made me wonder if it would show as revolving credit or an installment loan on your credit report. However, after using the site’s chat function to ask about this, I was informed that all plans will show as installment loans from Austin Capital Bank. They’ve since updated the verbiage to say “$X Installment Account Reported,” which helps make things a bit clearer. 

The other part that confused me was, if you were paying $15 a month for 120 months, you’d end up spending $1,800 on what is actually a $1,000 loan. As it turns out, that’s where the “Subscribe” title plays a role. Plus, as was pointed out to me, 120 months is 10 years — which is a heck of a long time. In my view, it probably doesn’t make sense to actually pay on this account for 10 years but, instead, pay $15 a month for as long as you need to reach your realistic credit goal. By the way, Credit Strong notes that you can cancel anytime without penalty.

When you do cancel, you will receive back some of the funds you paid in, although you will of course be paying interest on the loan. Thus, as Credit Strong shows on their pricing table, 24 months of Subscribe 1000 will find you paying $360, with only $111 of that going toward your savings. This amounts to a 13.5% APR. Meanwhile the Subscribe 2500 is a bit better in terms of interest, carrying a 7.75% APR. As a result, your savings after 24 months will be $359 (and you’ll have paid $720).

Build & Save Plans

For a more traditional credit builder loan option, Credit Strong offers three “Build & Save” plans. This includes a 36-month Build & Save 1100 account, a 24-month Build & Save 1000 account, and a 24-month Build & Save 2000 account. Each requires a one-time admin fee of $15 and, as you can guess, have loan amounts of $1,100, $1,000 and $2,000 respectively. This puts the 36-month Build & Save 1100 account’s monthly payments at $38, the 24-month’s at $48, and the Build & Save 2000’s at $96.

Magnum Plans

Lastly, Credit Strong’s two Magnum plans are similar to the Subscribe options but feature much larger credit limits. How much larger? Up to $10,000 with the Magnum 10000 account. If that’s a bit much, there’s also a Magnum 5000. In terms of pricing, the 5000 is $55 a month and the 10000 is $110 a month. These options are also available for terms of up to 120 months and have a one-time fee of $25.

Previously, Credit Strong had Magnum plans in denominations of 5000, 10000, and 25000. Additionally the pricing on those options was slightly more favorable than with the current line-up. I’m not quite sure what led to the change but I’m sure they know what they’re doing.

On their site, Credit Strong notes that these options can “Supercharge your personal credit for commercial purposes.” It’s also worth noting that these plans bear the lowest APRs, ranging from 5.85% to 5.91% depending on which you choose. Plus, like with the Subscribe plans, you can cancel at any time penalty-free.

Final Thoughts on Credit Strong

Like with Self, I think a credit-building loan from Credit Strong could be a good option for those who want to rebuild or establish credit. However I would advise potential customers to be mindful about the price they’ll pay for this service and carefully consider which option is best for them. 

For example, those willing to simply pay a monthly fee to help build their credit might like the low payments and flexibility of the Subscribe plans. Meanwhile those looking for a more traditional credit builder loan experience and want to amass some savings in the process might opt for the aptly-named Build & Save plans. 

It should also be noted that there is now a growing list of other credit-building options (such as debit cards that act as secured credit cards) that might not have as many fees associated with them.

That said, with the ability to pay off your loan early without penalty, establish a payment history with all three major credit bureaus, and considering Credit Strong’s backing from a legitimate bank, those looking to rebuild their credit or establish some for the very first time might find Credit Strong’s accounts well worth the investment.

Frequently Asked Questions
What is Credit Strong?

Credit Strong offers what are called credit builder loans. Instead of a traditional loan where you receive funds upfront, a savings account will be opened in your name that will be “unlocked” when you complete your payment. Then, as you make your monthly payments, you’ll establish positive credit history.

Is Credit Strong Legit?

Yes. Credit Strong is a division of Austin Capital Bank — an FDIC-insured bank that is also subject to government regulation and oversight.

How does Credit Strong work?

When you open a Credit Strong credit builder loan, the funds will be held in a “locked” savings account. Then, you’ll make fixed monthly payments towards paying off the loan (plus interest), with these payments being reported to all three major credit bureaus. Once you’ve paid off your loan, you’ll be able to access the savings account funds.

Does Credit Strong work?

Although individual results will vary due to numerous factors, positive payment history makes up 35% of your FICO credit score. Therefore, adding history to your report can have a significant impact on your scores.

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Also published on Medium.


Kyle Burbank

Kyle is a freelance writer and author whose first book, "The E-Ticket Life" is now available on Amazon. In addition to his weekly "Money at 30" column on Dyer News, he is also the editorial director and a writer for the Disney fan site and has recently starting publsihing his own personal finance blog at

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Credit Strong,being able to report to the three credit bureaus can surely impact your credit score.

While this can be a good credit builder, it can also be a good saving habit you can start with.

I think its very important to emphasize to potential users that more doesnt mean better in all cases. For one, it could skew your debt to income when looking for credit elsewhere, but more importantly, its crucial to keep in mind that while the larger loans do have the lowest apr, 3.8%apr on. 10,000 with only 100 monthly payments means that you are paying them almost $40 a month for the service. So be sure to look at the entire picture before deciding. Personally, i plan on getting the smallest loan for the longest time, and will deal with the higher apr, because i mainly just need more depth and credit age. While the magnum loans were appealing, in the long run, im just not prepared to pay 500 a year or more just for that service. But, if what you need is solid history with large accounts, its worth it, probably.

You make some excellent points Ryan. It’s important for everyone to evaluate their options based on their current financial standing as well as their future goals. It sounds like you have a good handle on what you are doing. Keep it up!

1) Austin Capital Bank “used to be” the lending partner of Self Lender….so it’s really a matter of partners breaking up and then competing with each other, #1.

2) These type ‘loans’ have been around FOREVER…these 2 have just added marketing lipstick on an old
Credit Unions and small community banks have offered these loans for YEARS.

Typically, of course the ‘name’ of the product varies as there is no universal definition term used or method for how to offer, essentially a ‘Cash-Secured Loan’

Some use the ‘Loan n Lock’ method like Self/CS others act much like the Secured Credit Card, where the consumer brings the deposit to be ‘locked’….some used CDs like Self others use ‘Shares’ aka credit union speak for savings accounts to ‘lock’ funds.

Some release aka unlock aka unsecure funds monthly as one pays, buy most keep it simple and just release it all at the end.

But, my biggest issue with the newcomers Self/CS is their cost are OUTRAGEOUS when compared to what a typical local CU or community bank would charge

Most CU/banks would only charge 2-5% above whatever they pay on the money used to secure the loan ( most don’t pay %, and rates suck anyway, so)

You lock $500 in a CD/Share savings and get 0.5% interest
The CU/bank charges you 2.5% on the loan aka 2% above, so the net difference is 2%…again the ‘worst’ is usually about 5%

Which still isn’t much because typically these ‘credit build n save’ accounts aren’t about PROFIT for them, it’s about offering a SERVICE to their members ( I worked at a CU many moons ago) it allows the institution to build a RELATIONSHIP with their “hopefully” long-term member/client.

Because there isn’t much to be made, etc…these products aren’t PUSHED by CU/banks seeking to “bring” ppl just looking for the one n done scenario, the products don’t get marketing spend but TRUST ME it’s been around….at least 25 years, we did them at my 1st CU job back in the 90’s

For example look at what Langley FCU charges to do their ‘Credit Builder’ Loan….and Yes they do the ‘loan n lock’ where they provide the funds, instead of the member/client aka same thing, man.

* It should be noted that the whole, ‘Don’t have to deposit money’ is actually OVERRATED

1) If one ‘flashes’ Red Rent to place in savings/CD, them 10 minutes later they’d walk out with Blue ‘Loan’ in the same amount….”so” = Not a big deal…to use, basically ‘flash’ one’s own cash temporarily for 10-15 minutes until the CU/bank issues ‘loan’ money.

Bring $500 in Red, they’ll Lend $500 in Blue = Same Difference

**Last thing…as far as a credit boosting tool the SSL aka Share/Savings Secured Loan is ONLY valuable ‘if’ said Credit profile doesn’t already have an ‘installment’ account reporting

You only need ONE installer, as it provides the ‘credit mix’ aka variety the algorithm is looking for only one is required, so spending for a 2nd/3rd is NOT prudent, unlike a 2nd/3rd revolving account aka Credit Card….

Remember, a reporting auto loan, student loans etc fill this need w/o additional red tape…and even positive closed accounts still report for 120 months aka 10 years before deletion, so be knowledgeable before just jumping in….all products aren’t VALUABLE to all profiles.

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