StellarFi Overview: Is it Price It?


StellarFi

Strengths

  • Might enhance your credit score rating inside the first few months
  • Experiences to all three credit score bureaus
  • No hidden charges or curiosity fees
  • Can earn money rewards on invoice funds (Plus and Premium plans)

Weaknesses

  • No free plan
  • Restricted customer support availability
  • Doesn’t report previous funds earlier than enrollment
  • Nonetheless a younger firm

StellarFi is a credit score builder platform that doesn’t require you to borrow cash, pay curiosity, or make any safety deposits. As an alternative, it converts your common month-to-month payments into a strong credit-building software.

However how does StellarFi evaluate to the numerous credit-building merchandise obtainable in the marketplace, and does it actually work? On this StellarFi assessment, we’ll clarify how the platform works, how a lot it prices, and the way it will help you construct credit score.

Desk of Contents
  1. What Is StellarFi?
  2. How StellarFi Works
    1. Free Credit score Report
    2. Add and Pay Payments
    3. Enhance Your Credit score Rating
  3. StellarFi Pricing
    1. Lite
    2. Prime
    3. Premium
  4. Is StellarFi Secure?
  5. Does StellarFi Truly Work?
  6. Professionals & Cons
    1. Professionals
    2. Cons
  7. Alternate options to StellarFi
    1. Kikoff
    2. CreditStrong
    3. Self
  8. FAQs
  9. Is StellarFi Price It?

What Is StellarFi?

stellarFI homepage

StellarFi is a credit-building service that opened to the general public in July 2022. In accordance with the monetary expertise (fintech) platform, over 130 million Individuals don’t have entry to a homeownership path or a monetary security internet to afford emergencies.

Considered one of StellarFi’s key promoting factors is that it means that you can construct credit score and not using a bank card by reporting your month-to-month funds to 2 of the main credit score bureaus (Equifax and Experian). Moreover, you gained’t endure a tough credit score test which might influence credit score selections for the subsequent two years. 

Get Began with StellarFi

How StellarFi Works

Getting began with StellarFi is straightforward. You merely join your month-to-month payments to a StellarFi Invoice Pay Card, which acts like a line of credit score. This credit score line pays your payments and instantly attracts the funds from a linked checking account, so that you by no means carry a stability or pay bank card curiosity. 

StellarFi has been including further perks as its buyer base expands. This contains invoice fee rewards and different perks on its upper-tier plans.

stellarFI how it works

Let’s take a more in-depth take a look at how one can bolster your credit score rating.

Free Credit score Report

You possibly can test your credit score rating at no cost after creating your StellarFi profile (there is no such thing as a influence in your credit score.) This offers a baseline from which to trace your progress with every invoice fee. 

Your StellarFi credit score rating is a Vantage 3.0 scoring mannequin from the three bureaus. Most credit score rating apps solely monitor one or two scores.

One minor frustration is that you simply see a Vantage 3.0 credit score rating as an alternative of a FICO Rating, which is the commonest credit score rating. The FICO Rating is the one the lenders use once they carry out a credit score test. So, the VantageScore isn’t as exact, however you may have a agency concept of your present credit score rating vary. 

Add and Pay Payments

After finishing the preliminary account setup, you may hyperlink your recurring month-to-month payments, akin to your cable TV, web, or telephone invoice. You obtain a digital StellarFi fee card that you may present the biller to pay the month-to-month tab.

StellarFI’s auto-connect function permits you to shortly replace your fee technique with most nationwide manufacturers. You too can hyperlink payments manually with retailers that StellarFi doesn’t have a direct relationship with.

Along with linking payments, you join your checking account to StellarFi to pay payments. There aren’t any further charges to make use of this service, akin to fee processing charges or financial institution switch charges. When a invoice is due, StellarFi will test your financial institution to make sure there are enough funds to pay the invoice to keep away from inflicting an overdraft. If there aren’t enough funds, the invoice is not going to be paid. If, for some cause, an overdraft does happen, StellarFi gained’t cost overdraft charges, however your main financial institution could.

Enhance Your Credit score Rating

By paying your payments by StellerFi, you identify a constructive fee historical past, as you’d with a credit score builder mortgage. Although you’re not borrowing cash or shopping for on credit score, it seems as a month-to-month mortgage compensation. 

Your month-to-month funds report to 2 of the main credit score bureaus:

This intensive reporting is just like the free service supplied by Experian Increase. Nevertheless, Increase solely improves your Experian credit score rating. It gained’t aid you construct credit score with Equifax or TransUnion.

You could discover a brief drop in your credit score rating once you first be a part of StellarFi, as the road of credit score seems as a brand new account in your credit score experiences. A brand-new credit score account negatively impacts your common size of credit score historical past (15% of your complete credit score rating) and new credit score components (10% of your complete rating). 

You will get related outcomes to StellarFi by paying your payments with a secured or unsecured bank card. Nevertheless, a bank card isn’t perfect if it encourages you to overspend or you find yourself paying excessive bank card rates of interest. It additionally is not going to instantly take the cash out of your checking account once you pay a invoice.

It can be tough to qualify for a bank card when you have unhealthy or truthful credit score.  

Different StellarFi credit-building instruments embrace:

  • Creating personalized credit score targets
  • Credit score rating simulator
  • Debt-to-income (DTI) calculator
  • Dynamic rating projections

Associated: Tips on how to Enhance Your Credit score Rating

StellarFi Pricing

StellarFi presents three paid plans (there is no such thing as a free model.) You possibly can improve to the next plan to entry the next credit score restrict, which can aid you reduce your credit score utilization ratio and help you pay extra payments. Right here’s a more in-depth take a look at what every plan has to supply.

Lite

The entry-level Lite plan prices $4.99 month-to-month and means that you can report as much as $500 of payments as credit score. Your preliminary line is smaller till you full your first invoice fee earlier than it expands to $500.

With Lite, you additionally get entry to different important StellarFI options, together with invoice pay auto-withdrawal, invoice fee notifications, credit score rating monitoring and alerts, 1-on-1 dwell credit score teaching, and extra.

Prime

StellarFi’s mid-tier plan known as Prime, and it prices $9.99 month-to-month after a $0.99 trial for the primary 30 days.

You possibly can have as much as $25,000 in payments reported as credit score, a big enhance over the Lite plan.

Premium

StellarFi Premium is the highest-tier plan and prices $29.99 month-to-month. As of January 30, 2024, it’s but to go dwell – there’s a ‘Coming Quickly’ discover on the StellarFI web site.

In accordance with StellarFi, the Premium plan will embrace the next unique advantages:

Stellarfi Pricing

Get Began with StellarFi

Is StellarFi Secure?

StellarFi makes use of bank-level 256 AES safety to encrypt your private information. The platform additionally makes use of randomized digital tokens and by no means shops your monetary info. 

With that stated, tech glitches do happen, and there are occasions when invoice funds might not be accomplished as scheduled. If that occurs, StellarFi will make it proper by reimbursing any late charges and defending your privateness.

Do not forget that StellarFi is a younger firm, so that you have to be comfy coping with a startup.

Does StellarFi Truly Work?

You possibly can profit essentially the most from StellarFi when you have a credit score rating within the low 600s or beneath. Listed here are some reported outcomes from StellarFi customers on Trustpilot:

  • Adrian N. reported a mean 40-point enhance after the primary month
  • Angel M. reported a mean 45-point enhance over 4-6 months.
  • Caitlynn D. reported a 20+ factors increase through the first 30 months.
  • Destany B. reported a 28-point enhance after the primary month and 0 factors after the second month earlier than leaving their assessment.

Understand that these are on-line reviewers, and their outcomes can’t be substantiated.

Additionally, from Trustpilot, the commonest StellarFi complaints are inclined to encompass a scarcity of customer support choices. A number of critiques point out that chatbots deal with the preliminary inquiry course of, and it may be tough to achieve a human. 

Finally, you may’t depend on StellarFi alone to strengthen your credit score historical past. You should additionally give attention to paying your present loans and bank cards on time, avoiding opening new bank cards or loans, and protecting present bank card accounts open so long as attainable to have the utmost advantages.  

Professionals & Cons

We’ve recognized the next strengths and weaknesses of StellarFi’s service providing:

Professionals

  • You possibly can enhance your credit score rating inside the first few months
  • Experiences to all three credit score bureaus
  • No hidden charges or curiosity fees
  • Can earn money rewards on invoice funds (Plus and Premium plans)

Cons

  • No free plan
  • Restricted customer support availability
  • Doesn’t report previous funds earlier than enrollment
  • Nonetheless a younger firm

Get Began with StellarFi

Alternate options to StellarFi

Earlier than signing up with StellarFi, it’s a good suggestion to discover different credit score builder platforms. With that in thoughts, listed here are a couple of StellarFi alternate options price contemplating.

Kikoff

Kikoff is a credit-building platform that provides a credit score account in addition to a secured bank card. The Kickoff Credit score Account is a $750 credit score line. As an alternative of paying payments, you should purchase monetary schooling merchandise, and your fee exercise experiences to the three bureaus.

Two further instruments embrace a secured bank card and a credit score builder mortgage. There’s a flat, $5 month-to-month charge for Kickoff’s Credit score Service, however not like some opponents, it doesn’t cost any charges for its secured card or credit score builder mortgage product.

Kikoff assessment for extra. 

Get Began with Kikoff

CreditStrong

You possibly can enhance your private or enterprise credit score by CreditStrong. A number of credit score builder mortgage tiers can be found relying on how aggressively you need to enhance your rating and your month-to-month finances. 

Take a look at our CreditStrong assessment to match credit-building plans.

Get Began with CreditStrong

Self

Self permits you to deposit month-to-month funds into an FDIC-insured certificates of deposit (CD). The credit score builder mortgage’s compensation time period is so long as 24 months with a month-to-month dedication between $24 and $150. Every fee experiences to the three main bureaus, and you might be reimbursed the contribution quantity on the maturity date, excluding charges.  

Further merchandise embrace a secured bank card and free hire reporting.

Learn our Self Credit score Builder assessment to seek out out extra.

Get Began with Self

FAQs

Does StellarFi do a tough credit score pull?

No arduous credit score test is critical to use as you solely want a Social Safety quantity or particular person taxpayer identification quantity (ITIN) to report funds to your credit score bureaus. 

How does StellarFi present up on a credit score report?

Your StellarFi account seems as a revolving line of credit score just like a bank card. Every month, the platform experiences your month-to-month invoice fee quantity and compares it towards your complete restrict to calculate a credit score utilization ratio.

How do I cancel StellarFi?

You possibly can pause or cancel your account by accessing the “handle account” button within the private info menu. Pausing your account retains your line open to stop an account closure from showing in your credit score report, however it now not experiences month-to-month funds as you’re not paying a membership charge anymore.

What are the StellarFi customer support choices?

Chat and e mail help is offered from 8 a.m. to six p.m. Central from Monday to Friday. Dwell telephone help is unavailable until the platform contacts you to schedule a name.

Get Began with StellarFi

Is StellarFi Price It?

StellarFi is price contemplating if you happen to’re searching for a strategy to construct or restore your credit score and not using a secured bank card or different credit score product. One of many largest benefits of utilizing StellarFi is that it helps you automate your funds and report your invoice funds to 2 main credit score bureaus, Experian and Equifax.

Simply be aware of the charges – sadly, StellarFi doesn’t supply a free tier – and be real looking about how a lot StellarFi can increase your credit score rating. Do not forget that you’ll have to follow sound credit-building practices, akin to well timed credit score funds and common budgeting, to remain on observe for monetary success.

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