Credit Strong Can Help You Build Credit—but Is Grow Credit a Better Option?
For those who want to build or rebuild their credit, technology has, thankfully, ushered in many opportunities to do so. From sites that enable you to check your credit score and improve upon it, to startups that offer entry-level, digital Mastercards which you can use to build your credit score over time, there are many ways to bump your FICO score from “poor” and “fair” to a higher, more respectable score.
But with so much competition in 2021, it can be difficult, as a consumer, to know who’s a cut above the rest, and who’ll get you to where you need to be quicker.
In this blog post, we’ll be doing just that by comparing Credit Strong with Grow Credit—two companies offering consumers ways to establish a better footing in the world of credit. So, if you’ve ever wondered which company you should take out an account with, this is essential reading.
We’ll be covering:
What is Credit Strong?
Some benefits of Credit Strong
Credit Strong’s drawbacks
What makes Grow Credit different from Credit Strong?
What you need to apply for a free Grow Credit account
Let’s get started, shall we?
What is Credit Strong?
Credit Strong is a company—and a division of Texas’ Austin Capital Bank—that offers consumers a way to build credit through a Credit Strong account. A Credit Strong account is a mixture of a secured consumer installment loan and a savings account.
Here’s how it works in action.
Firstly, if your application for a Credit Strong account is accepted, the Austin Capital Bank will provide you with an installment loan. They’ll then deposit the proceeds of that loan into a savings account with your name on it, and lock the funds in the deposit account so they are not available for withdrawal. The loan is paid off by you a little each month until, eventually, the lock is lifted and you gain access to the funds on deposit. The loan amount depends on the type of Credit Strong account you apply for: With the Credit Strong Subscribe 1000 account, for instance, a loan of $1,000 is placed into your savings account. It’s also worth noting that, no matter the type of Credit Strong account, there will be a one-time, non-refundable administrative fee to pay.
It’s ultimately through the monthly payments that you build your credit score (and also history): Credit Strong reports your loan payment history to the major credit bureaus—Experian, Equifax, and TransUnion. If the three bureaus see and understand that you’re handling repayments well (i.e. on time and in full), then that’ll cause your credit score and history to improve.
When the loan is indeed paid in full and the lock lifted, you can keep it in the savings account or move the funds elsewhere.
Requirements for a Credit Strong account
According to Credit Strong’s official FAQs, you need the following requirements to open an account with Credit Strong:
To be a permanent U.S. resident aged 18+, and with a physical U.S. address
A valid social security number or individual taxpayer identification number
A debit card, prepaid card, or checking account “in good standing”
A mobile phone number or Google Voice account
A functioning email address
However:
Your request may be denied if Credit Strong cannot properly verify your identity, if your payment for the one-time, non-refundable administrative fee fails, or if your previous banking behavior doesn’t align with their “product underwriting guidelines.”
While non-Texans can apply, if you’re a resident of Vermont or Wisconsin, it’s, at the time of writing this post, not possible for you to apply or open a Credit Strong account due to state laws.
Some benefits of Credit Strong
According to statistics from Experian’s Consumer Credit Review, all generations in the U.S. improved their FICO score in 2020 from 2019—especially Gen Z (18-23 y/o), Millennials (24-39 y/o), and Gen X (40-55 y/o). Could companies like Credit Strong and Grow Credit have played a part in this? Quite possibly—especially with regard to younger people and those who needed to improve their FICO scores before gaining entry to more traditional credit lenders.
Speaking of which, here are some benefits of Credit Strong and/or using a Credit Strong account:
It’s a way to improve your credit score, as long as payments are made each month (and on time, too). 35% of your FICO score is based on your payment history. This means that if you (re)pay the necessary amount on time, your credit score and history will improve. However, if you don’t (re)pay enough each month and on time, you’ll actually be damaging your credit score and history, rather than bettering it.
Payment information is automatically sent to the credit bureaus, ensuring your actions do impact your score. It’s not unusual for credit lenders and the like to report the (be them successful or missed, late, or insufficient) payments of their lendees—in fact, it’s the de-facto standard. However, knowing that your actions will be automatically reported directly to the folks who define your FICO store brings peace of mind: Apart from (re)paying in full and on time, you don’t have to do anything else on your end.
After paying off the installment loan in full, you have cash at your disposal. Let’s say that you got accepted for Credit Strong’s Subscribe 1000 account, which includes a $1,000 installment loan that can be paid off with $15 a month. After paying everything off, you’ll, by the end of it, have cash to use as you wish—as savings, as spending money, or as a personal investment opportunity.
On a final note, and like all programs similar to Credit Strong’s, the online application process is swift and takes no more than a couple of minutes to complete. This makes making your first steps toward a better and healthier FICO score incredibly easy.
That’s some of the upsides of Credit Strong and Credit Strong accounts covered.
But what about the downsides?
Credit Strong’s drawbacks
As with most products and services being offered by businesses, there are bound to be subjective downsides for consumers. It’s these potential downsides that should be made clear, so consumers can make an informed choice regarding their next steps.
So, and in the spirit of fairness, let’s take a quick look at as many potential drawbacks as we did positives:
You can’t immediately access funds. With Credit Strong, you’re given an installment loan in a savings account. However, before you can use any of those funds, you have to pay it off through monthly, fixed small-scale payments. It could take a very, very long time, then, if you’re paying $15 a month before you’ll finally gain access to the Subscribe 1000 account’s $1,000. If you’re a consumer who’d like to have access to usable credit sooner rather than later, you may want to look into other options.
You’re paying more than $1,000 for an installment loan of $1,000. Using the Subscribe 1000 account as an example once again, it includes a one-time administration fee of $15 as well as interest on the loan at a rate of 13.12%. This means that to fully access the loan sum years down the line, you'll actually be paying more than $1,000 in total. Meanwhile, some other companies don’t include things like loan interest, meaning alternative routes could be more cost-effective for you as a consumer.
Not everybody in the U.S. can currently apply for a Credit Strong account. As briefly touched on earlier, certain state laws in Vermont and Wisconsin stop residents of these states from applying for and getting a Credit Strong account. (Specifically, Vermont has outlawed deposit secured consumer lending, and Wisconsin state law demands spousal consent for consumer loans, which, as Credit Strong wrote, “can’t be accommodated in the online application process.”) Due to how other companies structure their programs, though, there are programs that are fully available U.S.-wide and don’t exclude consumers from certain states.
Now that we’ve reviewed Credit Strong in a nutshell, let’s see how it compares with Grow Credit—a free, digital Mastercard that pays your small-scale subscriptions and builds a strong credit history in the process.
What makes Grow Credit different from Credit Strong?
First thing’s first: What is Grow Credit?
Grow Credit enables U.S. residents to easily build and/or improve their credit over time. You use your free, digital Grow Credit Mastercard to immediately pay small-scale monthly subscriptions to Netflix, Spotify, Amazon Prime, and many others. All you need to do is set up your account, add your subscriptions, and then pay back the money that’s advanced from your Grow Credit Mastercard each month!
For a quick visual explanation of Grow Credit, just watch the video below.
In a sense, then, Grow Credit and Credit Strong are similar, as both companies are on a mission to help consumers raise their FICO scores and better their overall credit history. What makes Grow Credit a standout option, though, is just how streamlined, accessible, and effective our program is.
Here’s what makes Grow Credit a #1 choice for anybody looking to reach a higher FICO score:
Signing up is easy—and free. It takes mere minutes to apply for a Grow Credit Mastercard via our app or website. Check out the section below for the right links!
Residents of all U.S. states can apply for a Grow Credit Mastercard. No matter where in the U.S. you live, you’re eligible to apply for a Grow Credit Mastercard and take out a membership plan that best suits your needs. Speaking of which…
Base memberships are free, but you can take full control of all-things credit with a Grow or Accelerate membership. You can have access to a Grow Credit base membership—known as the Build membership—without paying a dime. Build memberships include a $17 spending limit each month, a free FICO score, and a plan duration of 12 months that can be renewed. But if you wanted to take your credit score and history to the next level, there’s the Grow and Accelerate memberships, which are two paid (and cheap) options. These include a much higher spending limit ($50 and $150 per month respectively), the ability to build credit with your smartphone bills, access to premium subscriptions, and much, much more. Check out all the available plans here. Grow Credit does not charge interest on any of the membership plans.
Your actions are automatically reported to the major credit bureaus. When you (re)pay into your Grow Credit Mastercard, your actions are automatically reported to Experian, Equifax, and TransUnion, ensuring that they’re aware that you’re being financially responsible. Like Credit Strong, we take care of all the behind-the-scenes work for you, so you don’t have to lift a finger.
Once approved, you can use credit for your subscriptions immediately. With Grow Credit, you get instant access to credit—each and every month! Rest assured there aren’t any interest or APR fees involved, either.
There aren’t any fees for closing your account. Some companies charge consumers for closing their accounts early, and some don’t. At Grow Credit, we’re the latter, so if you reach your credit score goals sooner than expected (and assuming your balance has been paid in full), you can close your account ahead of time and free of charge.
These pros are just the tip of the iceberg—there are plenty more benefits to be had as a Grow Credit user.
As TechCrunch said, we’re a:
“A pretty elegant way to solve a problem that’s a real barrier to entry for a large number of financial services.”
And as Creditcards.com said, Grow Credit is a:
“A useful tool for climbing the ladder and eventually qualifying for a better card.”
Are you ready to grow with Grow Credit?
What you need to apply for a free Grow Credit account
To apply for a Grow Credit account, you must have the following—and in your name:
A bank account (that’s been open for at least 60 days)
A valid email address
A working phone number
A social security number
A physical U.S. address and resident status
A minimum income of $1,200 per month (for at least 2 months)
An account balance of at least $100
And to be age 18+
If you meet these common requirements, download our iOS or Android apps to start the application process, or do so via our website today!