StellarFi helps consumers establish credit quickly simply by paying their monthly bills like rent, utilities, cell phone and even streaming services on time.
What is StellarFi?
StellarFi is a financial technology company, founded in 2021, that helps individuals build and improve their credit scores without requiring them to take on new debt.
It accomplishes this by reporting on-time payments for your everyday bills to major credit bureaus, such as Experian and Equifax. These types of payments are typically not included in traditional credit reports.
Consumers with bad credit can benefit from this no-credit check, guaranteed approval account that can help improve credit scores. Unlike other credit building products, the only debt that comes with a StellarFi account is the monthly membership fee.
How StellarFi Works?
- Sign Up: You sign up for StellarFi and connect your bank account.
- Add Bills: You add the bills you want to pay through StellarFi.
- StellarFi Pays: StellarFi uses a virtual card to pay your bills on time.
- You Reimburse: You reimburse StellarFi for the bill amount.
- Credit Reporting: StellarFi reports your on-time payments to the credit bureaus, helping you build a positive credit history.
Does StellarFi actually work?
Yes, StellarFi does work to help individuals build their credit scores. It accomplishes this by reporting on-time bill payments to credit bureaus, which are typically not factored into credit scores. However, individual results may vary based on their financial situation and credit history.
Does StellarFi pay your bills?
Essentially, yes. StellarFi uses a virtual card to pay your bills on your behalf, and you then reimburse StellarFi. This allows them to report those on-time payments to credit bureaus.
Does StellarFi do a hard pull?
No, StellarFi does not perform a hard credit pull when you sign up. This is a significant advantage as hard pulls can temporarily lower your credit score.
How does StellarFi show up on a credit report?
StellarFi reports your bill payments as a revolving line of credit. It will appear on your Experian and Equifax credit reports under the name “StellarFi” or something similar. The impact on your credit score will depend on various factors, including your existing credit history and how consistently you pay your bills on time through their service.
Does StellarFi report missed payments?
Yes, StellarFi will report missed payments to the credit bureaus. That means if you are in any way not confident you can pay your monthly bills on time, hold off on signing up for StellarFi until you can.
Cost to use StellarFi
StellarFi’s current pricing tiers are based on the features offered.
Here’s the information to help you weigh the potential benefits against the monthly fees to determine if it fits within your budget and financial goals.
1. Lite Plan – $4.99 per month
Features:
- Reports on-time bill payments to Experian and Equifax
- No hard credit pull
- $500 monthly spending limit (also reported as the credit limit)
- Basic credit score tracking
2. Prime Plan – $9.99 per month
Features:
- All Lite features
- Up to $25,000 monthly spending limit (reported credit limit increases as you pay more bills on time)
- Credit-building rewards
- One-on-one credit counseling
Premium Plan – $29.99 per month
Features:
- Coming soon
- The highest Bill Pay Limit
- Limit reported to major credit bureaus
- Pay unlimited bills anywhere
Learn More
StellarFi Credit Builder Pros
No Hard Credit Pull: StellarFi doesn’t perform a hard inquiry on your credit report when you sign up, making it accessible for those with low credit or no credit history.
Builds Credit with Existing Bills: It reports on-time payments for your everyday bills like rent, utilities, and subscriptions to major credit bureaus, helping you build a positive credit history without needing new debt.
No Interest or Hidden Fees: There are no interest charges or hidden fees associated with using StellarFi. You simply pay a monthly membership fee.
Improves Credit Utilization: By reporting a credit limit that increases over time, StellarFi can help improve your credit utilization ratio, a key factor in your credit score.
User-friendly Interface: The platform is easy to navigate and use.
StellarFi Credit Builder Cons
Monthly Fees: StellarFi has a monthly subscription fee, which can add up over time.
Limited Bill Types: Currently, you can only add recurring bills, like utilities and subscriptions. Rent reporting might require additional verification.
Impact on Credit Score Depends: The impact on your credit score can vary based on your credit history and how consistently you pay your bills on time.
Final thoughts
StellarFi should be viewed as any credit account that reports regularly to the credit bureaus. That means you must pay obligations listed under StellarFi’s service timely, including your existing credit obligations to see an overall improvement.
