Coronavirus (COVID-19) Options for Self Credit Builder Accounts
We’re sorry to hear that you’ve been negatively affected by the coronavirus pandemic.
The Credit Builder Account is intended to help you build credit history by building payment history. It wasn’t designed to be deferred, in part because the terms are so much shorter than other installment loans that are used to pay for major items (like homes, cars or an education).
We understand things are tough right now, and we respect your desire to keep building your credit. Here are the options we can offer along with some information to help you make a decision about your account.
If your due date is coming up or just passed, remember that we have a 15-day grace period from the due date until a late fee is assessed. The late fee is 5% of your monthly payment (at a minimum it’s $1.25, but at most $7.50, depending on which product you chose).
If you miss the 15-day window but still make your payment before 30 days from the due date, don’t worry. Make your payment and let us know you were late because of the COVID-19 pandemic. We'll waive that late fee.
If you don’t think it will be possible to make your payment within 30 days of the due date, remember that we have to report accurate payment history to the credit bureaus. So if the payment is more than 30 days late, it may negatively affect your credit score.
Instead of having a late payment appear on their credit report, some customers choose to close their account(s) early. When you close your account early, we’ll return the principal you’ve already paid in (minus any outstanding interest and fees, though we are also waiving the early-account closure fee if you let us know you're closing because of COVID-19). Remember, the $9 origination fee when you signed up is non-refundable.
Closing your account early may still affect your credit score. We will report the loan as closed and paid in full. Depending on what else is in your unique credit report, that may affect the length of your credit history (also known as the average age of accounts), as well as reduce the amount you owe, both of which are credit score factors.
Closing your account early will also limit the amount of positive payment history you are building, for now. But we’d like the opportunity to work with you on rebuilding your credit when you’re ready. If you decide to close your account because of COVID-19, you should receive an email from us with a special link if you would like to open a new Credit Builder Account. If you use the link, we’ll waive the $9 admin fee.
For questions specific to your account, please contact our customer success team. Live chat and email are the fastest methods at this time. You can find that information here..