AUSTIN, Texas, Feb. 19, 2019 /PRNewswire-PRWeb/ -- Austin Capital Bank (ACB), a 5-star rated and FDIC-insured independent community bank, today announced the launch of Credit Strong (http://www.CreditStrong.com), the first nationwide credit-building account that combines both an installment loan and an FDIC-insured savings account to help consumers simultaneously build credit and savings.
"Consumers usually build credit by opening up a credit card and then spending on purchases. By opening a Credit Strong account with us, consumers can instead establish or build their credit by setting aside savings," said Erik Beguin, CEO and President, Austin Capital Bank.
Traditional forms of establishing or building credit such as secured credit cards and credit builder loans require a large upfront cash deposit, yet over 40% of Americans don't have enough cash in savings to cover a $400 unexpected expense, according to a recent study by the Federal Reserve. This lack of savings can make building positive credit a challenge for consumers, potentially trapping them in a vicious cycle of high cost credit.
"Credit Strong makes the ability to build good credit accessible to almost anyone, ranging from working class individuals with an imperfect credit profile and recent graduates who want to start establishing a credit history, to sophisticated users of credit looking to round out their profile with an affordable installment tradeline. With the creation of this new product, we have eliminated the barrier of an upfront security deposit and have also removed the temptation and risk of over-spending that's often associated with credit cards," added Beguin.
With no upfront security deposit, no hard credit inquiry or credit score required, plus low monthly payments, a Credit Strong account makes building credit easy and affordable. Consumers can apply online and be approved in just minutes. Additionally, Credit Strong accountholders receive a free monthly FICO® Score to track their progress. FICO Scores are used in more than 90% of lending decisions, including credit cards, mortgages, and automobile financing.
Here is a short video demonstrating how Credit Strong works:
https://www.youtube.com/watch?v=ky5Jbho736A
Here's how it works: During the term of their Credit Strong account, accountholders make a commitment to themselves to set aside savings each month and demonstrate a responsible pattern of on-time repayment that lenders look for when extending credit on favorable terms. At account maturity, Credit Strong users will have up to 24 months of installment payment history reported to the three major credit bureaus and have set aside up to $2,000 in their savings account. Accountholders may close their account at any time with no prepayment or early withdrawal penalty.
The Credit Strong product line builds on Austin Capital Bank's considerable experience in offering consumer accounts that help build household wealth. Since 2016, ACB has helped over 50,000 accountholders build strong credit and savings.
Credit Strong accounts are available exclusively from Austin Capital Bank and its affiliates. Employers, associations, and consumer finance education providers that want to offer credit building and savings programs to their employees, members, users, or followers can partner with Austin Capital Bank through the bank's Credit Strong affiliate programs. (http://www.creditstrong.com/partners/)
About Credit Strong
Credit Strong is a division of Austin Capital Bank. The Credit Strong account is the first nationwide fusion of credit building and an FDIC insured savings account and is available online 24 hours a day in 47 states.
About Austin Capital Bank
Austin Capital Bank is 5-Star rated, independent FDIC-insured community bank located in Austin, Texas. The bank serves as a platform for responsible financial service new product innovation, offers home mortgages across the United States through its HomeVantage Mortgage division, and has a core community bank line of business primarily serving Central-Texas. Austin Capital Bank is consistently ranked as high growth, high performance financial institution. Austin Capital Bank has been ranked for three consecutive years in the Inc. 5000 list of fastest growing privately held companies and has also been ranked in the top 10% of all banks under $1 billion in assets by S&P Global Intelligence. For more information visit https://www.austincapitalbank.com/about-us/
FICO® is a registered Trademark of Fair Isaac Corporation.
SOURCE Credit Strong
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