Introduction to One Credit Builder
One is a financial technology company that offers checking and savings accounts. Included in our guide to the best high-yield savings accounts, One now offers a credit builder product for existing members.
With zero fees and tri-bureau reporting, One Credit Builder is a no-risk approach that can help individuals boost their credit. Read our One Credit Builder review to determine if this path fits your financial needs.
What is One Credit Builder?
In a nod to its name, One has been helping consumers save, spend, and grow their money on a single platform since 2019; in April 2022, it was acquired by Hazel (an independent fintech launched by Walmart and Ribbit Capital). One offers a robust array of financial tools from checking and savings accounts to debit cards, plus flexible "pockets" designed to help users manage their money in one place.
Its credit builder acts like a secured credit card, though it comes with no interest or fees. One Credit Builder would be a shoo-in for our guide on the best credit builder loans, except it has one huge caveat: It's unavailable to those without an existing One account , so the majority of consumers won't be able to access this product.
User Reviews and Ratings
Customer reviews of One average 4.7 stars out of five on both Apple and Google app stores. However, it fares far worse on Trustpilot, receiving an average of 1.6 stars out of five across 112 reviews. Most complaints were associated with discontinued features in the wake of the acquisition by Hazel, fees related to its in-store gift cards, and poor customer service (although multiple negative reviews had recent responses from agents offering suggestions for seeking support).
Note that all reviews of One, positive and negative, pertain to the platform as a whole, not just its credit builder.
Compare Credit Builder Accounts
Breakdown of Credit Builder Program
One refers to its different accounts as "pockets." When approved, start using One's Credit Builder by adding $12 ($1 per month for 12 months) in your One Primary Savings pocket. At the end of the program, you will get this $12 contribution back.
You'll also take out a 12-month $300 loan at 0.00% APR which will be put in a Credit Builder lockbox until it's used to pay off your balance each month. Each month, fulfill your $25 monthly payment by contributing $1 and the remaining $24 will come out of the Credit Builder lockbox.
Your balance will be reported to the three major credit bureaus each month. However, your credit utilization doesn't get reported, so you can spend 100% of the balance you deposit in your account without worrying about your credit utilization ratio hurting your credit score.
One Credit Builder Pros and Cons
Unlike others in the industry that pre-pay bills and require the consumer to "pay them back," One comes with no risk of overspending or missed payments as the consumer remains in charge of how much money is allocated to the Credit Builder pocket.
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One Credit Builder Alternatives
With no interest charged and no fees, the One Credit Builder is a very appealing product. The ability to use your One accounts or external bank accounts to deposit money into your Credit Builder gives it great flexibility.
By using the money you've already placed in your Credit Builder pocket to pay off your purchases, there's very little risk of missed payments and a harmful delinquency on your credit report. This is one advantage that One has over other credit builder products and secure cards.
Unfortunately, there's the huge caveat that the One Credit Builder is only available to customers with a One account receiving direct deposits of $500 or more. However, you can find comparable products elsewhere. The Fizz Debit Card, which operates very similarly, is widely available. You can also earn rewards when you shop at certain businesses using the Fizz card.
One Credit Builder vs. Self
Self Credit Builder Account's credit builder loan is one of the few credit-builder loans available in all 50 states. Self offers four payment plans between $25 to $150 monthly, all of which take 24 months to complete. Self doesn't perform a hard credit inquiry, and it reports to all three credit bureaus, but that's the bare minimum for a loan designed to build credit.
Self's relatively high APRs from 15.51% to 15.92% make it hard to recommend, but most notably, the BBB has put out an alert on Self over the numerous reports and complaints of fraud and difficulty receiving payments coming from consumers. As of August 2023, Self has communicated with the BBB, detailing its efforts to improve fraud detection and customer communication.
Make sure you take a close look at Self before enrolling.
One Credit Builder vs. CreditStrong
CreditStrong Revolv is one of the most widely available credit-building accounts, operating in 48 states. It reports to all three credit bureaus, offers multiple payment plans, and offers options for high payment amounts. CreditStrong can be a good choice for those trying to build credit from scratch or improve their credit.
CreditStrong has mixed reviews from customers online. The company has a Trustpilot rating of 2.5 stars out of five across 39 reviews, and its Better Business Bureau profile has a rating of less than 1.27 stars out of five, with 97 complaints filed in the past three years.
In negative reviews, common complaints by CreditStrong customers include poor customer service and a lack of results. But most importantly for those considering Credit Strong, many negative reviews showed a lack of understanding about what CreditStrong loans do and how they work. It's important to do your research before signing up with any type of credit builder, so you understand how it works and can possibly improve your credit.
One Credit Builder vs. Chime Credit Builder
The Chime Credit Builder Secured Visa® Credit Card requires a customer to have a checking account with Chime. The company has a Trustpilot rating of 2.4 stars. Although there are no fees, it is a secured credit card, which means that you will use your own money by way of the security deposit. There is no minimum security deposit amount required.
Chime also doesn't offer a direct path to convert to an unsecured card. It can still help since improving your credit score will help you get approved for other cards down the road. However, you can't simply upgrade your secured Chime account to an unsecured one. If you want an unsecured card, you'll need to apply and get approved for another credit card on your own.
However, if your credit is severely damaged and you're having trouble getting approved for other secured cards, the Chime Credit Builder Secured Visa can be helpful in improving your credit.
Who Is One Credit Builder For?
One's Credit Builder tool is ideal for those who need to build credit quickly and easily with little to no risk. It is designed for consumers unable to access — or at risk of overspending while using — an unsecured line of credit.
According to its website, One Credit Builder accounts are "automatically available to most One customers who are (re)building their credit." While an individual's credit history is considered for qualification, the specific credit requirements are not provided.
To open an account, individuals must be aged 18 and older, a US citizen or resident, and willing to provide their Social Security number. Applying for a One account requires a soft credit inquiry.
One Credit Builder Frequently Asked Questions (FAQ)
One Credit Builder differs from a credit card in that traditional credit cards require hard credit inquiries to access an unsecured line of credit, while One Credit Builder acts as a secured line of credit that you control. Plus, there are no hidden fees or interest charged, since what you spend is automatically deducted each month from funds allocated to your Credit Builder pocket.
Most users see results with One Credit Builder within 6 to 12 months, in the form of an improvement in their credit score.
One Credit Builder is not suitable for everyone. It's best for individuals with poor or limited credit history looking to improve their credit score. You must be 18 and older, a US citizen or resident, and willing to provide your Social Security number. Currently, One Credit Builder is not accepting customers without an existing One account with direct deposits of $500 or more.
Customers can contact One customer service by calling 1-855-830-6200 between 9 a.m. and 9 p.m. ET, seven days each week. They can also chat through the One app or submit an inquiry through its help center.
