Cheese Credit Builder Review
Cheese lets you build credit and savings at the same time. It's also one of the most affordable credit builders, but what's the catch? Read on to find out.
Overall Score | 4.8 | ||
Fees | 4.0 | ||
Credit Building Tools | 5.0 | ||
Credit Bureaus Reporting | 5.0 | ||
Mobile App | 5.0 | ||
Pros and Cons
- Reports to 3 credit bureaus
- 12/24 months term
- Get your money back
- VantageScore only
- Not available in all states
Bottom Line
Simple credit builder with minimal fees and charges
What if you are only starting to build your credit? Your thin credit history can make it hard for you to get approved for anything.
You may struggle to apply for large loans or credit cards, for example. But Cheese can help with that.
That said, even if Cheese can help build your credit, it's not the best option if you need thorough credit repair.
Keep reading to learn how it works and how it compares to other credit builders.
What Is Cheese?
Cheese is a credit builder that works like a reverse loan. You make monthly payments towards your chosen loan, but you get your money back in the end.
You can choose your loan amount between $500, $1,000, or $2,000. And you can select 12 or 24 months as your loan term.
Because you get your money back, you're building your credit and savings over the course of your term. You can monitor payments and track changes in your credit through the mobile apps.
Who is Cheese Best For?
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Cheese is best for those who:
- Want to save some money and build credit simultaneously
- Have limited or thin credit history
- Are looking for credit builders with limited fees and charges
Cheese is not ideal for you if you need extensive repair on your credit. It's better to consider credit repair companies to dispute and remove negative items dragging your credit.
Having said that, there are other downsides (and upsides) when working with Cheese. Read on.
Cheese Pros And Cons
Pros
- Start building credit on Day 1
Cheese is fast! You can open an account, choose your plan, and pay immediately. The payment reflects the next business day.This means you can start building credit with Cheese right away. In comparison, other credit builders may take a few business days to reflect your first payment amount.
- No hidden fees
Cheese doesn't charge any admin or membership fees.[1] You also don't need to pay late fees in case of late payments or early payoff for your account.You only need to be mindful of your monthly deposits and APR for your chosen credit builder loan. Also, you can cancel at any time without worrying about cancellation fees.
- No hard pull on your credit
Cheese does not require a credit check when you apply. You don't need to worry about your application affecting your credit score.
Cons
- Expensive interest rates
Cheese credit builder loans have an APR of 5–16%, depending on the state. The APR may not be as small as you expect. - Provides VantageScore only
Your FICO score is the most common credit score used by lenders. The credit score you see in Cheese may slightly differ from your FICO score. - Not available in all states
Cheese is available in all states except the following: AL, IN, KY, NV, PR, VT, VI, WA, WI.[2]
Apply for a Credit Builder Account at Self
- Get the Credit Builder Account that helps build credit today!
- Choose the plan that fits within your budget
- Monthly payments are reported to the three major credit bureaus.
How Cheese Works
- Select your deposit amount ($500, $1,000, or $2,000) and term length (12 or 24 months).
- Make your payments ON TIME every month.
- Cheese reports your payments to Experian, Equifax, and TransUnion.
Yes, Cheese reports all your activities to the three main credit bureaus, including missed payments and late payments. It's best to always pay on time to build a better payment history on your credit report.
When you sign up for Cheese, you need an external bank account. Cheese sets this linked bank account into autopay. This means you need to make sure that there are enough funds in your account.
Also, you can keep track of your credit changes through the mobile app whenever you add on-time payments to your account.
Once you finish your term, you get your full loan amount minus the calculated interest. Cheese will transfer your deposits into the linked bank account.
Cheese is available on iOS and Android. You can access your account on mobile for easier and more accessible credit monitoring.
What happens when you cancel Cheese?
You can cancel your credit builder loan or close your account early without penalties. You can get your savings minus the APR calculated at that point in your term.
However, remember that closing your Cheese account may negatively impact your credit.
Cheese will no longer report your payments and accounts to the credit bureaus, which affects your overall payment history.
Cheese Pricing and Fees
Cheese only charges the APR as its fee. The APR ranges from 5–16%, depending on your state.[3]
APR per state
| APR | STATE |
|---|---|
| 5% | GA, IL, OH, WV |
| 9% | HI, PA, MA, TX |
| 12% | CA, NC, NJ, NY, SC, VA |
| 16% | AK, AR, AZ, CO, CT, DC, DE, FL, IA, ID, KS, LA, MD, ME, MI, MN, MO, MS, MT, NE, ND, NH, NM, OK, OR, RI, SD, TN, UT, WY |
Cheese Credit Builder Loans
You have 6 flexible loan plans to choose from, and you have a fixed monthly installment depending on your chosen loan.
| AMOUNT | TERM |
|---|---|
| $500 | 12 months |
| 24 months | |
| $1,000 | 12 months |
| 24 months | |
| $2,000 | 12 months |
| 24 months |
Let's say, for example, you open a $500 loan in a 24-month term. You live in California, which has an effective APR of 12%. This is how much you'll end up spending every month:
| $24 per month Get back $500 | |
|---|---|
| Admin Fee or Membership Fee | $0 |
| Total Payment | $576 |
| Term Length | 24 months |
| Get Back | $500 |
| Final Cost | $76 |
Final costs and monthly fees vary by state. But the same rule applies: the loan amount you apply for is the same amount you get back once you finish your loan term.
No, Cheese is not a real bank account. It is a credit builder that gives you several loan plans, so you can keep paying every month, potentially improving your credit. Nevertheless, Cheese used to offer debit cards, which it has since discontinued to offer to consumers.
Is Cheese Worth It?
Cheese is worth it if you want a simple way to build credit, and you can set aside a small amount for your monthly payment.
Since Cheese reports your payments to the three main credit bureaus, opting for Cheese is a good way to create a better credit history. Just make sure to keep making timely payments.
Also, since Cheese doesn't have other fees apart from the APR, it can be an affordable option as well.
How To Open A Cheese Account
You can open a Cheese account in as fast as 3 minutes. Here's how:
- Go to the sign-up page.
- Fill in your email and continue to email verification.
- Finish setting up after verification and fill in your information.
Not everybody qualifies for a Cheese credit builder account. You first need to meet the following criteria:
- Be 18 years or older
- Be a resident of the United States
- Have a valid SSN
- Reside in a state where Cheese offers its services
- Have a valid email address, phone number, and address
- Have a bank account to be connected to Cheese
Is Cheese Credit Legit?
Cheese is a legitimate credit builder. Over 48,000 users have signed up for an account, with some of them leaving positive reviews online. Plus, all your transactions within the apps are secured with 256-bit encryption.
That said, Cheese cannot guarantee an increase in your credit score even after making your monthly deposits. It's only a tool you can use to help.
Cheese Customer Service and Reviews
Cheese users have left their reviews on the mobile app pages. And there are good and bad experiences from each.
| PLATFORM | AVERAGE RATING |
|---|---|
| Apple App Store | 4.6 out of 5 ★ for over 1,700 ratings |
| Google Play Store | 3.2 out of 5 ★ for over 800 ratings |
For example, Tom talked about a substantial credit score increase from using Cheese—a very positive review.
However, it wasn't the same case for Bria Rivers. She stated that the Android app is too buggy even when signing up for an account.
If you have issues of your own and need to get in touch with Cheese, here are some customer service channels you can try:
- Phone: 844-525-6247
- Email: support@earncheese.com
- Address: 130 W Union St., Pasadena, CA 91103
If Cheese doesn't seem like the right fit, don't worry. There are other credit builders and credit builder loans that can help jumpstart your credit.
Keep reading for some of them.
How Cheese Compares
Here are some alternatives to build your credit apart from Cheese:
- Cheese vs Self
Among these alternatives, Self is the most similar to Cheese since it offers Credit Builder Accounts.Self's packages cost $25–$150 every month. The biggest difference between Cheese and Self is the fees.
Self offers four credit builder plans. Starts at $25/month.
Sample loans: $25/mo, 24 mos, 15.92% APR; $35/mo, 24 mos, 15.69% APR; $48/mo, 24 mos, 15.51% APR; $150/mo, 24 mos, 15.82% APR. See self.inc/pricingSelf charges many fees, including late payment, closing, and convenience fees.[4] Compared to Self, Cheese is the more affordable choice.
Apply for a Credit Builder Account at Self
- Get the Credit Builder Account that helps build credit today!
- Choose the plan that fits within your budget
- Monthly payments are reported to the three major credit bureaus.
- Cheese vs Kovo
Kovo is a credit builder that gives you access to digital courses and 24 months of ID monitoring for $10 a month.[5] The installment plan lasts 24 months, and keeping on-time payments helps build your credit history.That said, Kovo is more expensive than Cheese because you don't get your money back.
Build Credit & Earn Rewards
- No credit check
- Instant approval
- 0% APR / $0 fees
- Cheese vs Kikoff
Kikoff works a bit differently. You pay a $5 service fee every month. Then, Kikoff gives you access to a $750 revolving credit line to purchase products in the Kikoff Store.[6]Kikoff is significantly cheaper than Cheese, and it's not a loan, so there is no term or expiry. You can keep paying the $5 monthly fee even without using the credit line.
You can read our three-way comparison for Kovo vs Self vs Kikoff to know how the three credit builders perform.Credit Building Made Easy
- No credit pull required
- With 0% interest
- Open your account in minutes
Bottom Line
Cheese credit builder loans can be one of your best options in credit building. The credit builder loans are affordable, and the terms are long enough to keep building your credit history.
But that's far from the best part. The best thing about Cheese is you get your money back!
That said, make sure to keep all your payments on time to help build good credit. Cheese reports missed and late payments to credit bureaus after all.
References
- ^ Cheese. Does Cheese charge any admin or origination fee?, Retrieved 01/03/2024
- ^ Cheese. Where is Cheese available?, Retrieved 01/03/2024
- ^ Cheese. How much does Cheese Credit Builder cost?, Retrieved 01/03/2024
- ^ Self. Pricing, Retrieved 01/03/2024
- ^ Kovo. How does credit building work?, Retrieved 01/03/2024
- ^ Kikoff. Pricing, Retrieved 01/03/2024
Apply for a Credit Builder Account at Self
- Get the Credit Builder Account that helps build credit today!
- Choose the plan that fits within your budget
- Monthly payments are reported to the three major credit bureaus.
Credit Building Made Easy
- No credit pull required
- With 0% interest
- Open your account in minutes
Build Credit for Free
Get a Free Mastercard to pay your subscriptions and build your credit
Write to Alex Mambaje at feedback@creditdonkey.com. Follow us on Twitter and Facebook for our latest posts.
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Credit Builder Accounts & Certificates of Deposit made/held by Lead Bank, Sunrise Banks, N.A., First Century Bank, N.A., each Member FDIC. Subject to credit approval. The secured Self Visa® Credit Card is issued by Lead Bank or First Century Bank, N.A., each Member FDIC.
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