$100 Credit Builders or Cheap Credit Builders: What is the Catch?

The idea of buying and selling credit builders has become more acceptable and widespread, in the finance industry. Why? Because nobody wants bad credit and you think $100 credit builders could be the answer. Am I right?

With a low credit score, you can’t get low interest on car loans, mortgages, or personal loans, and in some cases, that dream job. Yet, increasing your credit score or transforming your 500 (extremely low) to a dazzling 800 and above can be quite difficult. Especially when you need to boost your credit score within a very short period. 

Many Americans have to apply for credit; several credit builder companies have emerged to bridge the gap between partners who want to sell credit builders and buyers looking for credit builders for sale.

Credit Builder 101

What is a credit builder? A credit builder is a credit account, usually a credit card or a line of credit on your credit file. Your credit accounts will show up as primary credit builders when you review your credit on the credit bureau site.

However, when you add someone to your credit builder, they’re considered an auth’d user. The process of adding an user is also called credit piggybacking. 

Credit Builders are in very high demand especially now with the high unemployment rate. So basic economics kicks in – an increase in demand leads to a concurrent decrease in supply which in turn leads to an increase in price.

Can you find cheap credit builders or $100 credit builders that are budget-friendly? Most likely! The question to ask is, should you buy it? Continue reading to make your decision.

Cheap Credit Builders vs Quality Credit Builders

Like most things you buy in life, you can get cheap or quality but you can’t get both. With something as important as your consumer credit and finances aren’t getting the results you need more important than the cost?

The two main factors that determine the price of a credit builder is the credit limit and the card age. Note: the higher the limit and card age the higher the cost and vise versa.

Should I go for this cheap credit builder or the one that seems like a higher quality but is out of my budget? Here’re the most common issues we’ve found when buying seasoned $100 credit builders:

• They are typically individuals selling credit builders and not through a corporation, so they have no legal obligation to protect your personally identifiable information.

• The $100 credit builders do not have 100% perfect payments so the impact on your credit is minimal.

• The credit builder age is less than 2 years old so it reduces your average credit age which has a medium impact on your credit score.

• The credit limit or credit histories linked to those $100 credit builders are low. If you also have a low credit limit and purchase a low limit credit builder with high usage, it could cause your score to drop.

• You typically do not get support from the company if they offer that low cost $100 credit builders.

• Most of those cheap credit builders are used to build credit on fake Social Security Number (aka CPN credit builder) which is fraudulent and is against the law.

These are a few of the compelling reasons why you should not buy cheap or $100 credit builders or even $200 credit builders. Of course, the cost could be a concern. However, the cost is only an issue in the absence of value. 

A good starting point is other alternatives like $300 credit builders or a higher price range. Those credit builders usually have at least 2 years of age and a decent limit that could provide the results you need.

What You’ll Get for $100 Credit Builders

The simple truth is – not very much! When you click on a link that promises you can buy a credit builder or primary credit builder for just $100, there is a lot to be wary about. 

It is not to say that you will get scammed if you buy a cheap credit builder. However, there are important things you should keep in mind when you purchase 100 dollar credit builders.

5 Reasons Not to Get a $100 Credit Builder

1. You could fall prey to scammers.

Buying cheap credit builders for $100 or less hardly comes with a caveat those $100 credit builders are legit. It is possible that after buying the credit builder, you will not see it reflected in your credit report even after several months of waiting or the guarantee period has elapsed. 

When you see $100 credit builders for sale advertised on Craigslist or even on eBay, it should send warning bells off in your head. The listings usually appear legit. When you click the link, you’re redirected to their website if they have one.

You will most often find out that the website was poorly designed with social proof, little to no information about the company and its founders, and too good to be true promises with a huge “Increase your credit score 200 points overnight, guaranteed!” Please don’t fall for it!

2. Getting on the wrong side of the law.

There is nothing illegal with the practice of buying credit builders for a better credit score. But, most of the cheap credit builders you will find online are pushing the edge from a legal to illegal practice. 

For example, it is possible that the credit card you are about to get added on as a user is stolen credit card information from the dark web. When you’re added to the account, your report might be flagged for suspicious activities.

Another common practice when people look to purchase $100 credit builders is to build synthetic credit profiles known as CPN. This practice is against the law!

When this happens, the credit bureau or credit company could report it to law enforcement. Then, you become a suspect of illegal activity for something you are completely ignorant about.

3. Fishbait!

Sometimes, you get emails or notifications of these cheap credit builders as sale options. Most likely, you had been searching for how to get the highest credit score quickly on the internet. You go ahead and click the offer to sign up. 

You soon discover that “$100 credit builders” are suddenly not available and you have to go for a “premium credit builder.” 

The chat icon prompts you to get on the phone or chat with a sales agent that ends up selling you a $750 credit builder. At this point, you’ve gone too far in the process and feel bad not moving forward; you feel stuck. You end up buying a credit builder that might have cost 150-300 bucks lower in a more conventional company.

Several ‘“reputable” companies use these $100 credit builders as leads. This practice is referred to as bait and switch. Although it is legal, it is not ethical. Our team at Tradeline Works do not support such practices.

4. Giving out Information to the wrong people.

When buying $100 credit builders, you are often required to provide sensitive information such as full name, date of birth, social security number, and address. I believe it is very unwise to input these details on just any site out there. 

You want to make sure the site is secure, the business is registered with the state, the information is encrypted, and they have properly vetted their sellers or partners.

Ensuring you’re working with trustworthy people is important because if someone has all your personally identifiable information, they can open a credit account in your name and you could be liable for every havoc they make.

5. $100 credit builders may not boost your score. 

Let us assume you get a genuine offer on a site that sells credit builders for really low prices without you getting scammed or hunted down by the police in the case of a CPN credit builder. 

You purchase the credit builder and you’re added to the account. What’s the catch?

Well, before you go to buy credit builders, you have to understand how a credit builder works. When you get an credit builder and it shows up on your credit report, the age of the account, credit limit, and payment history greatly determine how effective it will improve your credit score. 

100 dollar credit builders are credit accounts that are usually less than 2 years old with very low limits.

In the best-case scenario, your credit score may go up by only a few points. Worst case scenario, your credit score takes a nosedive because the new credit account reduced your average credit age.

Purchasing Quickly Reporting Credit Builders

Most of us want results now, especially in today’s era! Credit Builders are no different. People want better credit now and want to see the impact of a credit builder within a week of purchasing one!

What’s worse is that some companies may promise immediate results to your credit scores when you buy credit builders from them. it is just like a get rich scheme, they hardly ever work.

The average time for an credit builder to show up on your credit report is  20-45 days. 

Discover, Capital One, and Chase card report the account to your credit report the fastest. Usually within 30 days. Bank of America and Citi cards take about 60 days and Wells Fargo takes the loans.

If you want to get things done within a shorter time frame, ensure you buy the credit builder before the statement close date, and you are added to the card within that time frame.

You should also get all your documents to verify your identity ready and up to date to avoid delays on your end. 

One last thing to keep in mind: credit builders post monthly. If you purchase a credit builder very close to its posting date, it might not reflect immediately and you will have to wait for the next posting cycle.

What Credit Builder Companies Should You Buy From?

There are several credit builder companies to purchase credit builders at reasonable prices. However, we advocate for Tradeline Works! 

We started this company to provide a level playing field for Americans seeking to improve their credit score and people that want to make income selling credit builders in this modern digital age. We are tested and trusted with numerous reviews while keeping confidentiality and privacy at the core of our process.

5 Most Common Cheap Credit Builders FAQs

The prospect of boosting your credit score within a month, with just $100 seems very enticing. But facts are facts, and you should be wary of such offers. Before deciding to buy a credit builder, it is very crucial to know how a credit builder works.

You might also want to consider the more traditional method of asking a trusted family member with good credit to add you as a user to their account. However, not everyone is that fortunate.

If you are one of the unfortunate few, Tradeline Works is here to help. Check out our list of available credit builders to see which one might be the best fit for you.

That’s all for now! Don’t forget to leave a comment or share this article if you found it helpful. While you’re at it, try out our credit builder calculator to see the potential impact on your credit health.