CreditFresh Review: Quick Credit Approvals But Is it Worth the Cost?
Product Name: CreditFresh
Product Description: CreditFresh is a payday loan alternative that offers a quick-approval line of credit targeted at borrowers with low to fair credit.
Summary
CreditFresh is a payday loan alternative that offers a quick-approval line of credit targeted at borrowers with low to fair credit. Available credit limits range between $500 and $5,000, but a hard credit check is required.
Pros
- Credit limits between $500 and $5,000 available
- No collateral required
- Quick approvals
Cons
- No interest charges but very high fees
- You may only qualify for $500
- Only available in 29 states
CreditFresh is an online lender that offers a revolving line of credit to borrowers with low to fair credit. It can be considered an alternative to payday loans or other short-term credit products. Qualified borrowers can access between $500 and $5,000. There are no interest charges, but the monthly fees are very high.
At a Glance
- Lines of credit from $500 to $5,000
- Flexible credit requirements
- Same-day funding (in some cases)
- Available in 29 states
- Very high fees
Who Should Use CreditFresh?
CreditFresh can be an excellent option for the following borrowers:
- Renters: You want the flexibility of a line of credit but cannot qualify through a bank or other traditional lender.
- Borrowing at least $500: Cash advance apps usually only let you borrow up to $500 at once. However, well-qualified borrowers may qualify for a maximum $5,000 borrowing limit with CreditFresh.
- People rebuilding credit: The credit requirements can be more flexible than a personal loan, as your income determines your borrowing amount. Additionally, the repayment period and fees may (or may not) be lower than those of other short-term loans.
CreditFresh Alternatives
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| Product | Credit-Building Credit Card | Credit-building rewards debit card | Online loan marketplace |
| Pricing | $0 Annual Fee | $20-$25 monthly | Varies |
| Credit Limit | Equal to the amount of the security deposit | Tied to your bank account balance | $500 to $100,000 |
| Learn More | Learn More | Learn More |
Table of Contents
CreditFresh is an online platform offering personal lines of credit with a borrowing limit of up to $5,000. This revolving account is similar to a credit card that lets you borrow money up to your credit limit.
The service determines your borrowing amount during the application process. If you’re eligible, the minimum credit limit is $500.
While you draw your funds and make monthly payments through CreditFresh, these FDIC-insured lending partners finance your line of credit:
- CBW Bank (Kansas State Chartered Bank, Member FDIC)
- First Electronic Bank (Utah Chartered Bank, Member FDIC)
States Available
CreditFresh is available in the following 29 states:
- Alabama
- Alaska
- Arizona
- Arkansas
- Delaware
- Florida
- Georgia
- Hawaii
- Idaho
- Indiana
- Kentucky
- Kansas
- Louisiana
- Michigan
- Mississippi
- Missouri
- Montana
- Nebraska
- New Jersey
- North Carolina
- Ohio
- Oklahoma
- South Carolina
- Tennessee
- Texas
- Utah
- West Virginia
- Wisconsin
- Wyoming
Minimum Borrower Requirements
Here are the basic requirements to apply for a CreditFresh line of credit:
- Legal age for your state of residence
- You’re a US citizen or a permanent resident
- Maintain an active bank account
- Earn a consistent income
- Valid contact number and email
The lending service doesn’t disclose a minimum credit score or income to qualify for financing. Instead, the platform reviews your current circumstances to determine your creditworthiness.
How CreditFresh Works
The CreditFresh application process is very straightforward. You apply online and, in some cases, receive your funds from CreditFresh on the same day. Here’s how it works:
Free Online Application
To get started, head to the CreditFresh website to apply online. There is no application fee, and your credit score will not be impacted. The application process takes several minutes and requires that you verify your identity and income.
You won’t need to back a CreditFresh loan with collateral such as a title or home equity loan. However, if you default, a court order may repossess your possessions to cover the balance.
Same-Day Loans
When you submit your application before 3:30 p.m. Eastern Time Monday through Friday, you may receive funding requests on the same day.
However, the cutoff time varies by bank, and your cash may not arrive in your linked bank account. You can spend your money however you wish but must satisfy the monthly repayment guidelines.
Up to $5,000 Credit Limit
Eligible borrowers qualify for a borrowing limit from $500 to $5,000. Unlike a personal loan, where you receive all the funds upfront, make credit line draws only as you need money. This will help to minimize your lifetime borrowing costs.
Unfortunately, first-time borrowers won’t likely qualify for the maximum credit limit until they establish a positive payment history through CreditFresh.
CreditFresh states that long-time borrowers can receive credit limit increases and reduced billing cycle charges.
Minimum Payment Amount
Two factors determine your minimum payment amount each billing cycle:
- Mandatory principal contribution: This payment portion reduces your outstanding loan balance. The minimum is 3% (at least $15) for non-monthly incomes (i.e., weekly or biweekly) and 6% (at least $30) for monthly earners.
- Billing Cycle Charge: This is your only borrowing charge. The fee is a fixed amount and can be between $5 and $613 per month. Your cycle charge depends on your average daily loan balance.
You will receive your payment requirement 14 days before the payment due date.
CreditFresh Rates
You won’t pay the following fees when borrowing money through CreditFresh:
- Application fee
- Origination fee
- Early repayment
The platform also doesn’t charge an interest rate like credit cards and personal loans.
However, that doesn’t mean CreditFresh is a low-cost way to borrow money – quite the opposite, in fact.
Borrowers pay a tiered monthly fee, known as a Billing Cycle Charge that is tied to your average daily balance.
The fee can range between $5 and $613. As a general rule of thumb, the monthly fee is approximately 10% to 15% of your average daily balance, resulting in a high annual percentage rate (APR) that can rival payday loans and similar high-interest loans.
For example, if your average daily principal balance is between $4,750.01 and $5,000.00 for the month and your employer pays you monthly, your monthly Billing Cycle Charge with CreditFresh will be a whopping $613. Extrapolated over a full 12 months, your charges would exceed $7,300.
For reference, here is a screenshot of the CreditFresh Billing Cycle Table:
CreditFresh is clearly selling convenience, but it comes at a steep price. Given the high costs, you may be better off applying for a personal loan through another provider or waiting until your credit is approved and you can qualify for lower APR credit.
CreditFresh vs. Alternatives
Chime Credit Builder
The Chime Credit Builder Visa is a secured credit card with no annual fee or interest charges and no minimum security deposit. Your spending limit equals the balance in your Chime Secured Credit Builder account. To qualify for Chime Credit Builder, you must open a Chime Checking account and set up a qualifying direct deposit of $200 or more. This could be your payroll, gig economy, or benefits income.
Chime provides your monthly payment details to all three credit bureaus, while CreditFresh only reports to TransUnion. Read our full review to learn more about Chime Credit Builder.
Chime is a financial technology company, not a bank. Banking services provided by The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC. The Chime Visa® Debit Card is issued by The Bancorp Bank or Stride Bank pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa debit cards are accepted. Please see back of your Card for its issuing bank.
The Extra Debit Card allows you to purchase from a linked bank account each business day to avoid carrying a balance. However, it reports your card activity to the credit bureaus monthly, like a regular credit card, so you can improve your credit score.¹
You can also earn reward points on purchases.² Monthly plans range between $20 and $25, which can be cheaper than CreditFresh. For more information, check out our Extra Debit Card review.
¹ The Extra Debit Card is issued by Evolve Bank & Trust or Patriot Bank N.A. (Member FDIC), pursuant to a license by Mastercard International. The bank does not sponsor spending limits or credit reporting. Loans provided by Lead Bank. Extra is responsible for credit reporting and reports on time and late payments, which may impact a credit bureau’s determination of your credit score.
² Rewards points only available with rewards plan.
Monevo
Monevo isn’t a lender — it’s a personal credit marketplace that can help you find a loan to suit your needs. If you’re hoping to borrow at least $1,000 at once, Monevo can help you easily compare rates and terms from multiple personal loan lenders. You won’t enjoy the flexibility of making multiple withdrawals like CreditFresh, but your interest fees can be significantly lower.
FAQs
Can CreditFresh build credit?
Yes, improving your credit score through CreditFresh with on-time payments is possible. Keeping a low credit utilization by only borrowing up to 30% of your credit limit can also help.
What are the CreditFresh fees?
The CreditFresh billing cycle charge is a tiered amount between $5 and $350, depending on your average daily balance. This fee is approximately 10% to 15% of your average balance.
Unfortunately, this fee can be higher than the interest charges that credit cards and personal loans charge. Therefore, you may consider these alternatives first to reduce your borrowing costs.
What are the CreditFresh customer service options?
You can contact CreditFresh by phone or online chat to start loan requests and answer your repayment questions. Email support is also available for non-urgent topics.
Summary
CreditFresh can be a quick way to borrow money as you need it when you don’t qualify for a credit card, personal loan, or home equity line of credit. However, we cannot recommend this product due to the extremely high fees (Billing Cycle Charge). In our view, there are other, less expensive ways to rebuild credit.
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About Josh Patoka
After graduating in $50k with student loans in May 2008 from Virginia Military Institute with a B.A. International Studies and Political Science with a minor in Spanish (he studied abroad in Sevilla, Spain for 3 months), Josh decided to sell his soul for seven years by working in the transportation industry to get out of debt ASAP and focus on doing something else with a better work-life balance.
He is a father of three and has been writing about (almost) everything personal finance since 2015. You can also find him at his own blog Money Buffalo where he shares his personal experience of becoming debt-free (twice) and taking a 50%+ pay cut when he changed careers.
Today, Josh relishes the flexibility of being self-employed and debt-free and encourages others to pursue their dreams. Josh enjoys spending his free time reading books and spending time with his wife and three children.
Opinions expressed here are the author’s alone, not those of any bank or financial institution. This content has not been reviewed, approved or otherwise endorsed by any of these entities.
