This article explains how extra payments, early payoffs, and withdrawals work on CreditStrong accounts.

Prepayments (Paying More Than the Minimum)

There is no prepayment penalty if you choose to pay off your credit-builder loan early.

That said, when building credit, the most important factor is making consistent, on‑time monthly payments. Paying early or paying extra does not replace the need to make your scheduled monthly payment.

How extra payments work

Some customers choose to make principal‑only payments by:

• Making an additional payment after their regular scheduled payment, or
• Making a manual payment for more than the minimum amount due

Extra payments:

• Reduce your loan balance faster
• May shorten the overall life of the loan
• Do not count as future monthly payments

A minimum payment is still required every statement period, even if you’ve paid extra in the past.

Paying Off Your Loan Early

When your loan balance reaches $0, the loan is considered paid off.

What happens next

• The savings account holding the loan proceeds becomes eligible to be unlocked
• The loan will be reported to the credit bureaus as “Closed” with a $0 balance at the beginning of the next reporting cycle
  • Installment account reporting occurs at the beginning of each month
  • Revolving account reporting occurs near the end of each billing period

For details on how the savings account is closed and how funds are transferred, please see our article on closing your account.

Important notes about payoffs

• You are not required to pay off the loan in a single lump sum in order to close your account.
• Electronic payments are strongly recommended for payoffs. Paying by mailed check may result in additional review time.
• If you mail a payoff check, the linked savings account may be temporarily restricted for up to six months while the payment is reviewed.

Because CreditStrong loans are secured, if you choose to stop making payments, the collateral savings balance can be applied to the remaining loan balance. In that case:

• The account will still be reported as closed with a $0 balance
• Any remaining eligible savings will be handled according to the account terms

Withdrawals

During the loan term

While your loan is active:

• The collateral savings account is locked to secure the loan
• Loan funds are not available for withdrawal

After payoff or account closure

Once your account is paid off or closed:

• The savings account must be closed
• The entire available balance is transferred to the payment method on file
  (Partial withdrawals are not available)

Revolv savings accounts

If you’re looking to withdraw funds contributed to a CreditStrong Revolv savings account, please review our article on Revolv Savings Plans, as those accounts follow different rules.

Need help?

If you’re unsure how a payment, payoff, or withdrawal will affect your account or your credit reporting, our Support team is happy to help explain your options!