About OnePay Credit Builder Loan

What is OnePay Credit Builder Loan? #

OnePay Credit Builder Loan is a zero-fee, zero-interest program offered to customers with OnePay Cash+ benefits designed to help you build credit by setting aside just $1 per month for 12 months. OnePay will report your on-time payment every month to each of the three major credit bureaus. You will be able to build credit and track your score in the OnePay app.

These terms are based on a $300 12-month loan with $25 monthly payments and a 0% APR. You can choose how much you’d like to pay towards your monthly payment, with a minimum of $1. If you choose an amount less than the full monthly payment, the remainder will be paid from the loan proceeds held in your locked account.

Tap here to learn more about Credit Builder Loan in the OnePay app.

How does OnePay Credit Builder Loan work?#

OnePay Credit Builder Loan helps you build your credit without any interest or fees. Here’s how it works:

If you are approved, we will open a $300 loan for you and place that amount into a locked account. (Note that the funds in this locked account cannot be used for spending. Therefore, this $300 loan is not a traditional loan and you cannot use it for borrowing needs.)
The total monthly payment towards the $300 loan is $25 over 12 months. Typically, you will make a monthly payment of $1 towards the loan balance, and the remaining $24 will be covered by the funds in the locked account.
We report these (combined) $25 monthly payments to the three major credit bureaus (Transunion, Equifax, Experian), helping to build your credit with on-time payments.
When the program ends, we’ll return all of your monthly contributions back to your OnePay Cash Primary Savings pocket. After 12 months, you’ll get back the money you contributed, which is generally $12 if you’ve paid $1 per month. If you contributed more than $1 per month, you would get your contributed funds back at the end of 12 months. (For example, if you chose to pay $10 each month, you would receive $10 times 12 for a total of $120 back at the end of the program.) Note that paying more than $1 a month does not help you build credit faster.

Tap here to learn more about OnePay Credit Builder Loan in the OnePay app.

How does this program build credit? #

Making on-time payments is very important for your credit score. With OnePay Credit Builder Loan, every time you make a payment, we report it to the three major credit bureaus. These payments will show up as on-time monthly payments on an installment loan which can help to boost your credit score.

How does OnePay Credit Builder Loan differ from a traditional loan?#

Unlike traditional loans, the OnePay Credit Builder Loan is meant to help build credit, where the principal amount from the locked account is used to help keep your monthly payments on track. This means you won’t be able to spend the loan proceeds. At the end of the program, you get back your typical $1 monthly contributions deposited to your OnePay Cash Primary Savings Pocket. In contrast to many traditional loans, OnePay Credit Builder Loan charges no interest, no setup fees, and no late fees.

How quickly can OnePay Credit Builder Loan help build my credit?#

Building credit takes time, so it’s normal not to see any change in your credit score at first. After we start reporting your on-time monthly payments to the credit bureaus, they’ll generally show up on your credit report in about two to six weeks after starting the program. Everyone’s credit report and financial history is unique. Other changes to your credit report outside of OnePay Credit Builder Loan can also impact your progress and use of OnePay Credit Builder Loan does not guarantee that your credit score will improve.

How much will OnePay Credit Builder Loan increase my credit score? #

Use of the OnePay Credit Builder Loan program does not guarantee that your score will improve. Everyone’s credit report and financial history are unique. Any activity going on outside of OnePay Credit Builder Loan on other credit accounts that you have can impact your credit-building progress. That means every person will see a different impact on their score.

How long is the OnePay Credit Builder Loan program? #

The OnePay Credit Builder Loan program lasts for 12 months.

Is there a cost for OnePay Credit Builder Loan? #

OnePay Credit Builder Loan is a fee-free, interest-free program. When you’ve completed the program, the cost of Credit Builder Loan will be $0 to you. During the program, you can choose how much you’d like to pay towards your monthly payment, with a minimum of $1, all of which you will get back at the end.

These terms are based on a 12-month loan with $25 monthly payments and a 0% APR. If you choose an amount less than the full monthly payment, the remainder will be paid from the loan proceeds held in your locked account.

Why can’t I access the $300 loan?#

The $300 OnePay Credit Builder Loan is set aside in a locked account to help keep your monthly payments on track. This means you won’t be able to spend the loan proceeds. When the program ends, we’ll return all of your monthly contributions back to your OnePay Cash Primary Savings pocket. After 12 months, you’ll get back the money you contributed, which is generally $12 if you’ve paid $1 per month. If you contributed more than $1 per month, you would get your contributed funds back at the end of 12 months. (For example, if you chose to pay $10 each month, you would receive $10 times 12 for a total of $120 back at the end of the program.) Note that paying more than $1 a month does not help you build credit faster.