What is Credit Builder?
Credit Builder is a zero-fee, zero-interest program offered to customers with One Cash+ benefits designed to help you build credit by setting aside just $1 per month 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 in the One app.
These terms are 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 locked account.
Tap here to learn more about Credit Builder in the One app.
How does Credit Builder work?
Credit Builder helps you build your credit without any interest or fees. Here’s how it works:
- If you are approved, we'll open a $300 loan for you and place that amount into a locked account to use for your monthly payments.
- This $300 loan is scheduled to be paid back with $25 monthly payments over 12 months, but you only have to contribute $1 per month.
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Each month, $24 is taken from the locked account that was funded with $300, and you only contribute $1 to complete the $25 monthly payment.
- You can choose to contribute more than $1 per month. To complete the $25 payment, the amount paid from your locked account will be adjusted accordingly. For example, if you chose to pay $10, the amount transferred from the locked account will be $15 to complete the $25 payment. In this case, you would receive $10 * 12 months = $120 back at the end of the program.
- We report these $25 payments to the three major credit bureaus (Transunion, Equifax, Experian), helping to build your credit with on-time payments.
- When the program ends, we’ll return all of your monthly contributions back to your One Primary Savings pocket. After 12 months, you’ll get back the money you contributed, which is generally $12.
Tap here to learn more about Credit Builder in the One app.
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 Credit Builder loan meant to build credit, the principal amount is kept in a locked account. This means you won’t be able to spend that money. At the end of the program, you get back your $1 contributions deposited to your One Primary Savings Pocket. This means that after the program is completed, your total cost will be $0. In contrast to many traditional loans, Credit Builder charges no interest, no setup fees, and no late fees.
How quickly can Credit Builder help build my credit?
Building credit takes time, so it’s normal not to see any change in your credit score 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. Everyone’s credit report and financial history is unique. Other changes to your credit report outside of Credit Builder can also impact your progress and use of Credit Builder does not guarantee that your credit score will improve.
How much will Credit Builder increase my credit score?
Use of the Credit Builder Program does not guarantee that your score will improve. Everyone’s credit report and financial history are unique. Any activity going on outside of Credit Builder on other credit accounts that you have 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.
These terms are 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 locked account.
Why can’t I access the $300 loan?
The $300 Credit Builder loan is set aside in a locked account 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.