Cheers Credit Builder Review

Cheers 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 boost to 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 does it build your credit? I’ll answer those questions and more in this review. 

What Is Cheers Credit Builder?

Cheers is a credit-building fintech that lets you use your own savings to build credit. Instead of borrowing money up front, like 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 N.A., which is an FDIC member. 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 Does It Offer?

Cheers offers a straightforward, 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

Cheers’ offering is pretty simple. Members can choose from four different savings plans, as follows:

How It Works

When you sign up with 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 your two-year term, Cheers will deduct the interest owing, at a rate of 12.15% APR, and return the remaining funds to you. In addition to a higher credit score, you’ll also benefit from having saved as much as $3,200, depending on the plan you chose. 

Are There Any Fees?

Cheers doesn’t charge any origination fees. However, Cheers makes money by charging interest on payments at an APR 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 is a cost you will want to consider before signing up.  

How Does Cheers Compare?

If you’re thinking about 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 secured credit cards, and rent and bill reporting. It even has a cash advance feature. However, it charges a higher APR than Cheers on its credit-builder loans. Like Self, CreditStrong offers multiple credit-builder products, but its installment loan product is similar to Cheers’s. Credit Strong’s APR on its Instal loans is higher than Cheers (see table below for rates). 

How Do I Open An Account?

You can get started with Cheers by choosing a payment plan and signing up on its website. You’ll need to provide basic information, including an email address and password, to sign up and verify your account. It should be noted that you must be 18 years of age, have a valid U.S. bank account (for payments to be taken from), and a Social Security Number (SSN).  

Is It Safe And Secure?

Cheers should be considered safe to deal with. The money you send to Cheers is held in a secure savings account with its banking partner, Sunrise Banks, N.A. These funds are protected with FDIC insurance up to $250,000. 

How Do 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 upfront through a line of credit or a credit card, then 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 get started with Cheers and change your mind, you can cancel at any time, as there are no contracts. If you want more options, then I recommend looking at other credit-building alternatives, such as Self or CreditStrong. 

Check out Cheers here >>

Cheers Features