What is Credit Builder?
Credit Builder is a zero-fee, zero-interest program offered to One Cash account customers with Plus status designed to help you build credit by setting aside just $1 per month1 for 12 months, which you’ll get back at the end. One will report your on-time payment every month to each of the three major credit bureaus. You will be able to build credit and track your score all within the app.
How does Credit Builder work?
Credit Builder helps you build your credit without any interest or fees. Here’s how it works:
- After approval, we'll open a $300 loan for you and place that amount into a special savings pocket to use for your monthly payments.
- You will need to contribute $1 per month over the 12 month term. We'll add $24 from your Credit Builder savings pocket (which is funded from the $300 loan you took out when you applied) to make a total payment of $25 each month.
- We report these $25 payments to the three major credit bureaus, helping to build your credit with on-time payments.
- When the program ends, we’ll return your monthly contributions back to your One Primary Savings pocket (generally, you can expect to receive $12 back).
How does this program build credit?
Making on-time payments is very important for your credit score. With Credit Builder, every time you make a payment, we report it to the three major credit bureaus. These payments will show up as on-time monthly payments on an installment loan which can help to boost your credit score.
How does Credit Builder differ from a traditional loan?
With a traditional loan, you would have access to the principal amount of the loan. Because this is a loan meant to build credit, the principal amount is kept in a secured lockbox. This means you won’t be able to spend that money. At the end of the program, you get back your contributions to your One Primary Savings Pocket.
How quickly can Credit Builder help build my credit?
Building credit takes time, so it’s normal not to see any movement at first. After we start reporting your on-time monthly payments to the credit bureaus, they’ll show up on your credit report in about two weeks from your first payment. Remember, everyone’s credit report and financial history is unique. Other changes to your credit report outside of Credit Builder can also impact your progress.
How much will Credit Builder increase my credit score?
Everyone’s credit report and financial history are unique. Any activity going on outside of Credit Builder can impact your credit-building progress. That means every person will see a different impact on their score.
How long is the Credit Builder program?
The Credit Builder program lasts for 12 months.
Is there a cost for Credit Builder?
Credit Builder is a fee-free, interest-free program. You can choose how much you’d like to pay towards your monthly payment, with a minimum of $1, all of which you will get back at the end.1
Why can’t I access the $300 loan?
The $300 Credit Builder loan is set aside in a special savings pocket just for your monthly payments. This helps you stay on track with your payments. The balance isn’t available for everyday spending, ensuring it’s always there for your Credit Builder payments.
1. Based on a 12-month loan with $25 monthly payments and a 0% APR. You can choose how much you’d like to pay towards your monthly payment, with a minimum of $1. If you choose an amount less than the full monthly payment, the remainder will be paid from the loan proceeds held in your Credit Builder lockbox.