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How do CreditStrong installment accounts work?

Overview

CreditStrong installment accounts are cash‑secured installment loans designed to help you build credit over time.
 
When you open an installment account, the loan is originated by Austin Capital Bank. The loan proceeds are placed into a locked savings account in your name, which secures the loan. This loan balance is what drives the credit‑building benefit of CreditStrong installment accounts.
 
 

How the account works

Here’s what to expect once your account is open:
  • The full loan amount is placed into a locked savings account
  • You make fixed monthly payments toward the loan
  • Your payment activity is reported to Experian, Equifax, and TransUnion
  • On‑time payments help build payment history, one of the most important factors in your credit score
Payment history accounts for a significant portion of your FICO® Score, which is why consistent, on‑time payments matter.
 
 

Payments, principal, and interest

Just like any other installment loan, each monthly payment is divided into two parts:
  • Principal, which reduces your remaining loan balance
  • Interest, which is the cost of borrowing and using the service
Interest is calculated based on your loan balance, not as a flat percentage of each payment.
 
You can review current installment product pricing here, or learn more about how interest is applied to your account in our related article.
 
 

When the loan is paid off

At the end of your loan term, once the installment loan is paid in full:
  • The locked savings account is unlocked
  • The remaining savings balance is released to you
  • Funds are sent using the method of payment on file
This completes the credit‑building cycle for the account.
 
 

Important things to keep in mind

  • Installment accounts are designed for credit building, not short‑term access to cash
  • Savings funds are not accessible until the loan is paid off or the account is closed
  • Staying current on payments is the best way to get the most benefit from the account
If you have questions about your specific installment account, payment schedule, or reporting, our Support Team is always here to help!