Why Is This Important?
- Credit builder services are new to the credit score improvement scene — most fall into the category of predatory loans or services.
- Paying a company a fixed fee of 15% to hold your money for you is insane.
- If you already have more than 1 open account, your credit score will drop 15–30 points as soon as you open the account.
- Read the reviews: 63% are 1-star for Self Credit Builder Loans.
- Read the reviews for the Kikoff Credit Builder app — they are very predatory.
- Read the reviews: 61% are 1-star for Credit Strong Credit Builder Loans.
Their Dirty Little Secrets
- At the end of the so-called loan, the account is marked as paid and closed — this will cause your credit score to drop, losing all the points you had gained.
- All positive effects of the account disappear — you would have just taken 2 steps backwards.
- The amount of money you get back will be 15% less than what you paid.
An Easy Mistake You Can Fix
- If you have a credit builder account, CANCEL it and get your money back.
Why Is Rent Reporting So Much Better?
- Because you are reporting all of your past history and it is not a new account!
- Rent is the fastest way to improve your credit score, and it reports in days not months.
Gross Profits at the Expense of Working Families
- One well-known credit builder loan service claims to have returned $500 Million in funds to credit builders — meaning they've profited close to $100 Million of your money.