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Divvy Credit Builder Review
It can be difficult for businesses to access critical loans and capital if they have a bad credit rating or no real credit history. If you are just launching your own business and need access to capital, it is absolutely essential to have a decent credit score. Since many entrepreneurs are younger and may have had credit mishaps prior to starting their businesses, they may not be starting out with the very best credit. While this is unfortunate, rebuilding your credit rapidly is critical; otherwise, you may not be able to get your business off the ground.
Furthermore, a company’s credit score indicates to its investors, suppliers, and other partners whether it is safe and profitable to do business with the company. A low credit score can limit your opportunities for collaboration, growth, and favorable terms on deals and loans.
Fortunately, if your company’s credit is less than stellar, there are options. To qualify for business loans, entrepreneurs with credit issues often consider credit builder loans as a way to improve their companies’ credit scores. Credit builder loans are distinct from traditional loans in several ways, as we will discuss shortly. This article examines Divvy Credit Builder’s program, so you can determine whether or not their platform is a good fit for your own company’s financial situation.
Onto our Divvy Credit Builder review!
Divvy Credit Builder Pros and Cons
Here is a great summary of the advantages and drawbacks of the Divvy Credit Builder Program.
- Divvy Credit Builder loans have less stringent qualification requirements than traditional personal loans.
- If you want to buy a car, qualify for a mortgage, or get a credit card with a low interest rate, Divvy credit builder can help.
- Late payments on Divvy Credit Builder loans can have a negative effect on a person’s credit score.
- Fees are not disclosed on the Divvy website.
Credit builder loans: An Overview
Prior to discussing the Divvy Credit Builder program let’s take a quick look at what credit builder loans are all about.
What is a credit builder loan? A credit builder loan is a type of secured personal loan that can be used to improve your credit score. With the right lender, these loans are fairly easy to obtain and offer a good level of security in case you default on one or more payments. Credit builder loans work by making a series of payments on the loan and then after you have made all of those payments, they will release the money to help build your credit. The best part is that these are unsecured loans so there is no need to put up any collateral. It’s an easy way for people who do not have perfect credit or even established credit can get into great financial shape.
Early repayment. The best part about getting a credit builder loan is that there’s no penalty for paying off the balance early with most lenders, so it’s just like any other line of credit when it comes down to it. In fact, you may even want to do this with every single monthly payment if possible because they will add up quickly and help your credit score in an accelerated manner.
The basics. Because lending entails risk, lenders are more likely to lend money and offer better terms to people with good credit. The reason for this is that good credit indicates that the borrower is more likely to repay the loan. However, you cannot build good credit unless a lender gives you the opportunity to prove your worth. Fortunately, there are ways for lenders to provide you with a loan without taking the risk that you will not repay it. A credit-builder loan is one such option. When you accept a credit-builder loan, the money you agree to borrow is deposited into the lender’s bank account. Unlike traditional loans, this sum is set aside for you rather than given to you. As with any other loan, you will be required to make principal and interest payments based on the amount borrowed. These payments are made for terms ranging from six to twenty-four months, and when the loan term expires, the money is withdrawn from the account.
Save money while building credit. Credit builder loans provide a dual benefit by ensuring that you save a significant amount of money while also building credit. Rather than providing such services to individuals, Divvy Credit Builder provides them to businesses in need. Small businesses that previously relied on their owner’s personal credit history to obtain loan facilities can now begin using those companies’ credit histories to obtain loans.
About Divvy Credit Builder Services
Lenders are usually unwilling to take a risk on a borrower whose riskiness is unknown. They are usually wary of being among the first to offer such businesses loans to brand new companies, and it is extremely frustrating for these businesses if they are trying to borrow, and no lender wants to do business with them.
Divvy’s credit building service provides solutions for companies, particularly small ones that are just getting started and want to access credit in their company’s name. Divvy offers a corporate credit card service with a unique rewards scheme and benefits package, as well as expense management software. In general, the company offers customers a user-friendly platform for expense management, budgeting, and bill-pay; the Divvy virtual card, which offers a modernized credit solution; a reward system; and a variety of other extra services.The credit builder platform is a subset of Divvy’s main platform that focuses solely on credit building.
How Does Divvy Credit Builder Work?
Accept the Credit Builder program application
A credit score is something that affects everyone. However, many people do not know how it works or what factors into the calculation. Having a good credit score opens up opportunities like buying a home, getting approved for loans, and even getting better interest rates on mortgages. Knowing your credit score can help you make smart financial decisions to improve your life.
Typically, the credit builder program begins with an application process. A business owner must first apply for a Divvy line of credit. If for some reason, the business is unable to qualify due to a low credit score, the owner will be directed to apply for a credit builder loan. Businesses that qualify for a credit facility but have not been directed to a credit builder program have the option of enrolling in the program. This is accomplished by sending Divvy a message on its website.
How To Apply
Apply for a Divvy line of credit here.
Apply for a Divvy Credit Builder loan here.
Providing Your Documents
If you are eligible for the Divvy Credit Builder program, the next step is to confirm that all documents required by the lender are provided. To accomplish this, business owners must check their email on a regular basis. If additional documents are required to verify the business you own in addition to those provided, you should receive an email from the company. However, if you happen to miss it, there is a simple way to check it out.
Navigate to https://apply.divvy.co/auth (If you have trouble with that link, try this one then click on “Start Application” then click on “Already have an account? Log in here”) in your web browser. This should take you to a page where you must enter your business email address into the box. After providing this information, a code will be sent to your email, which you must enter in the box provided. After successfully entering this code, you will be taken to your Dashboard, where you will find the requested documents listed. You can upload these documents to the same portal.
When you qualify for and accept Divvy’s Credit Builder program, a single card will be shipped to the physical business address you provided on the application. It typically takes 7-14 days for this to arrive.
Credit builder loans work by making a series of payments on the loan and then after you have made all of those payments, they will release the money to help build your credit. The best part is that these are unsecured loans so there is no need to put up any collateral. It’s an easy way for people who do not have perfect credit or even established credit can get into great financial shape.
Load your Card with Funds
The next step after a successful application is funding. Funds can be loaded onto Divvy cards via wire or ACH transfer, and once the account is funded, the business owner(s) is free to spend the money as they see fit. It should be noted that there is no limit to the amount that can be loaded onto a card, though it is recommended that at least $1 be loaded at all times. It is also worth noting that it may take up to four days for funds to be processed and available for spending in your Divvy account after loading.
Monitoring your Credit History Report
A credit history report is a document that tracks your financial activities and displays the information of your account. This may include how much you owe, if you pay on time or late, whether there are any outstanding balances, and so on. Your credit history report will also show the inquiries made on said report as well as any public records such as bankruptcy or tax liens.
On a monthly basis, Divvy reports credit account activity to credit bureaus. This means that all of the money you spend each month will be reported to the bureaus as on-time payments. Only D&B and SBFE receive credit activity reports from Divvy. And it should be noted that the reported activity only affects the business account and not the business owner’s personal account.
Helpful Business Links
Divvy Business Credit Card: Fast and flexible business credit when you need it.
Divvy Business Credit Builder: A program to help businesses build their credit.
Swipesum: Find the cheapest credit card processing solution that is best for your business.
Toptal: Hire ex-Google, Apple, and SpaceX freelancers online.
99designs: Create graphic design contests with top talent from around the world.
Carbon Easy: Grow your business by carbon offsetting with Paying Green®.
Divvy claims to make money from interchange fees charged to vendors whenever a Divvy card is used to make a purchase. Although the company claims that it does not charge any fees or impose any hidden charges on its customers through its credit builder and credit programs, some charges have been discovered to be levied by them. These fees are not publicly listed on the company’s website, which is unfortunate. Some of the fees discovered to be charged include:
- Cross-Border Fees: 0.90 percent of total transaction volume when the account user is located in the United States, 0.20 percent when the account is located in Canada.
- Late Payment Penalty: 2.99 percent of the outstanding balance or $38, whichever is greater.
- Currency Conversion: fees are calculated at 0.20 percent of total transaction volume.
Divvy Credit Builder Reviews and Complaints
Divvy has received mostly positive feedback from business owners. However, as with all popular financial service companies, there is always a negative comment from a certain segment of the consumer population. The majority of Divvy Credit Builder’s negative reviews are about technical support.
The lender can be reached at:
Email: [email protected]; phone: 435-731-5078; and live chat on the website.
Divvy Credit Builder Alternatives & Competitors
- MoneyLion: Unlike traditional credit-builder lenders, MoneyLion provides faster access to cash. You will, however, be required to pay a monthly membership fee in addition to your regular loan payment each month.
- Self (previously Self Lender): Many people recommend Self because it reports your payment history to all three major consumer credit bureaus each month, ensuring that your credit score improves.
Frequently Asked Questions (Faq)
Here are some of the most frequently asked questions about the Divvy Credit Builder Program
Does Divvy Credit Builder have an effect on personal credit as well?
No, Divvy Credit Builder only reports activity that may have an impact on your business’s credit.
Which credit bureaus will receive a report on my credit?
Your payments are reported to D&B and SBFE by Divvy Credit Builder. SBFE is a non-profit trade organization that does not offer credit scores or credit reports. SBFE, on the other hand, reports your payment history to credit bureaus such as Dun & Bradstreet, Equifax, Experian, and Lexis Nexis Risk Solutions.
What amount will be reported to the credit bureaus if I spend a different amount each month?
The amount you spend each month repaying your loans will be reported to the bureaus as on-time payments.
How frequently will Divvy Credit Builder report on my credit?
Your payment activity will be reported to credit bureaus on a monthly basis.
Divvy Credit Builder Review Final Thoughts
If your credit is less than stellar when you’re preparing to start your new company don’t panic, because the Divvy Credit Builder program can definitely help. When it comes to building up your company’s credit, Divvy is arguably the best player in the market because it provides services at a low cost and with clear terms. So, check out Divvy as soon as you can, and get your company ready for launch.
Thanks for reading our Divvy Credit Builder review.