Cheers It is a financial technology company that helps people build or rebuild their credit using their own savings. It reports to all three credit bureaus, and according to Cheers, users with fair credit see a 20-point increase in their credit score within the first two months.
Of course, there are costs involved, which begs the question: Are credit builders like Cheers worth the price, and how exactly do they build your credit? I will answer these questions and more in this review.
Quick summary
- Build credit using your savings
- A reasonable annual interest rate is 12.15%.
- Reports to the three credit bureaus
- No contracts, cancel anytime
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Details of the chants |
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|---|---|
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Product name |
Cheers credit builder |
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April |
12.15% |
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Monthly payment |
$24 – $144 per month |
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Credit bureaus |
Equifax, Experian, Trans Union |
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Promotions |
no one |
What is Cheers Credit Builder?
Cheers is a credit-building financial technology that allows you to use your own savings to build credit. Instead of borrowing money upfront, as you would with a loan, you make monthly payments to Cheers. These funds are held in a secure savings account with its banking partner, Sunrise Banks NA, which is member FDIC. Your payments are reported to the credit bureau for 24 months (or until you cancel), at which time the accumulated savings are returned to you, less the interest collected by Sunrise.
What do you offer?
Cheers offers a direct, savings-based credit-building program for people looking to build or rebuild their credit, without borrowing money through a credit card or loan.
Credit building plans
The Cheers show is pretty simple. Members can choose from four different savings plans, as follows:
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Beginner Builder |
Medium constructor |
Professional builder |
Max construction |
|---|---|---|---|---|
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Monthly payment |
$24 per month |
$33 per month |
$46 per month |
$144 per month |
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Total payments |
$600 |
$825.02 |
$1,149.98 |
$3600 |
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# of payments |
25 |
25 |
25 |
25 |
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Come back |
$532.70 |
$733.13 |
$1,021.69 |
$3,197.82 |
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Final cost |
$67.30 |
$91.89 |
$128.29 |
$402.18 |
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April |
12.15% |
12.15% |
12.15% |
12.15% |
How it works
When you sign up for Cheers, you’ll choose from one of four service plans, depending on how much you want to save each month. For example, if you select the Starter plan, you’ll make 25 monthly payments of $24. Cheers reports your monthly payments to the three credit bureaus, which, in theory, should boost your credit score over time. After completing the two-year period, Cheers will deduct the interest accrued, at a 12.15% APR, and return the remaining funds to you. In addition to a higher credit score, you’ll also benefit from savings of up to $3,200, depending on the plan you choose.
Are there any fees?
Cheers does not charge any set-up fees. However, Cheers makes money by charging interest on payments at an annual interest rate of 12.15%. The total interest is deducted from the accumulated savings balance at the end of the term, with the remaining funds returned to the member (see chart above for amounts). The 12.15% APR is reasonable compared to higher-interest loans and credit cards, but it’s a cost you should consider before signing up.
How do the cheers compare?
If you’re considering using a credit-building platform like Cheers, it pays to shop around before you sign up. Self is a popular alternative. It offers more credit-building products than Cheers, including unsecured and unsecured credit cards, rent reporting and billing. It even has a cash advance feature. However, it charges a higher APR than Cheers on its credit builder loans. Like Self, CreditStrong offers several credit-building products, but its installment loan product is similar to Cheers. Credit Strong’s APR on Instal loans is higher than Cheers (see table below for rates).
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head
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classification |
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Monthly payment |
$24 – $144 per month |
$25 – $150 per month |
Installation Loan ($28-$48 per month) |
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April |
12.15% |
Up to 15.92% |
Up to 15.73% |
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Cash in advance |
$0 |
$0 |
$0 |
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Credit cards |
|||
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cell
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How can I open an account?
You can get started with Cheers by choosing a payment plan and signing up on its website. You will need to provide basic information, including your email address and password, to register and verify your account. Please note that you must be 18 years old, have a valid US bank account (to receive payments from), and a Social Security Number (SSN).
Is it safe and secure?
Cheers should be considered safe to handle. The money you send to Cheers is held in a secure savings account with its banking partner, Sunrise Banks, NA. These funds are protected by FDIC insurance of up to $250,000.
How can I contact Cheers?
Cheers does not provide any contact information on its website.
Is it worth it?
If you’re looking for a straightforward credit-building product that doesn’t require borrowing money up front through a line of credit or credit card, Cheers is worth considering. It offers a straightforward product that can also help you save, charges a relatively reasonable APR that’s lower than some competitors, and reports to all three credit bureaus. And if you start with Cheers and change your mind, you can cancel at any time, as there are no contracts. If you want more options, I recommend looking at other credit building alternatives, like Self or CreditStrong.
Check out the cheers here>>
Features of chants
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Account types |
Savings plans to build credit |
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Origination fees |
no |
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Monthly payments |
$24 – $144 per month |
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Annual interest rate (%) |
12.15% |
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Cancellation fees |
no one |
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Credit cards |
no |
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Line of credit |
no |
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Cash advances |
no |
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Availability of mobile applications |
no |
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Customer service number |
nothing |
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Customer service hours |
nothing |
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Web/desktop account access |
Yes |
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FDIC insured |
Yes |
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Promotions |
no one |
Reviewed by: Robert Farrington
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