The Sesame Cash Credit Builder tool is unique as it allows you to build credit with everyday purchases. (1) There are no minimum credit score requirements or credit checks, and it’s easy to get started. Even better, it’s free to use, and you can earn up to $100 if your credit score goes up in 30 days. (2)
What Is Credit Sesame?
Credit Sesame was founded by Adrian Nazari to help consumers rebuild from the last major financial crisis. It was also the first online platform to offer free credit scores. The platform has evolved to feature credit report cards, credit monitoring, identity theft protection, a fee-free debit card, product recommendations, tailored financial content and more.
Create an online account in minutes without putting a credit card on file. Plus, you can start using the tools to improve your credit score and manage your money more effectively.
Improve Your Credit
Factors that Affect Your Credit Score
Credit Sesame provides free monthly VantageScore 3.0 updates from TransUnion. VantageScores range from 300 to 850 – the higher, the better. The credit scoring calculation is as follows:
- Total credit usage, balance and available credit (extremely influential)
- Credit mix and experience (highly influential)
- Payment history (moderately influential)
- Age of credit history (less influential)
- New accounts opened (less influential)
You should also be aware of the FICO score as it’s used by 90 percent of lenders and creditors to make lending decisions. Scores range from 300 to 850 and are calculated using this formula:
- Payment history (35 percent)
- Amounts owed or credit utilization (30 percent)
- Length of credit history (15 percent)
- Credit mix (10 percent)
- New accounts (10 percent)
The Benefits of Having a Good Credit Score
A good or excellent credit score can make your life easier and save you loads of time and money. Here are some key benefits of having a solid score:
- You’ll have access to more credit card and loan products with favorable terms.
- You’ll likely qualify for better interest rates on debt products.
- You could save thousands of dollars on your mortgage over the life of the loan.
- You could be eligible for reward credit cards that offer generous cashback incentives.
- You’ll have access to better housing options, whether you’re looking to buy or rent.
- You could get discounts on homeowners and auto insurance premiums.
- You’ll likely have security deposits for utilities waived.
- You probably won’t have to make a security deposit when you get a new cell phone.
- You may get approved for credit cards with high credit limits.
- You’ll have more leverage when negotiating the purchase price or terms on a mortgage or auto loan product.
- You won’t get turned down for a job based on your credit score.
Sesame Cash Credit Builder
Sesame Cash’s Credit Builder is an innovative credit-building solution. The fee-free prepaid debit account lets you build credit while using your debit card and rewards you with cashback when your score increases. (1)
How Does Sesame Cash’s Credit Builder Work?
Here’s a detailed breakdown of how Sesame Cash’s Credit Builder works:
- Step 1: Download the Credit Sesame mobile app on your iOS or Android device and sign up for a free membership.
- Step 2: Sign up for a free Sesame Cash account. Provide your name, date of birth, mailing address, phone number and the last four digits of your Social Security number to set up your unique profile. You will also be prompted to create a PIN to protect your account.
- Step 3: Add money to your Sesame Cash account and receive your Sesame Cash debit card in the mail. It can be used to make everyday purchases everywhere MasterCard is accepted.
- Step 4: Decide how much you want to allocate from your Sesame Cash balance to start building credit with Credit Builder enabled. Also, set a utilization limit for your Credit Builder account. So, if you start with $200 in your Credit Builder account and set the utilization at 30 percent, you can spend $60.
- Step 5: Credit Sesame uses these funds as a security deposit for a new line of credit and reports it as a virtual secured credit line to the credit bureaus.
- Step 6: Each month, Credit Sesame selects purchases from your prepaid debit card to create a balance on your secured line of credit. Credit Sesame also automatically remits payment and reports to the bureaus monthly to build your payment history.
Improve Your Credit
What Is Credit Builder?
When you open a Sesame Cash account and enable Credit Builder, you’ll get a virtual secured credit card. But it doesn’t work like traditional secured cards that require a security deposit and allow you to make purchases up to the credit limit. Instead, funds from your Sesame Cash debit account are used to set your credit limit, and select purchases from this card help build your credit history.
You’re also allowed to set your own credit utilization and change it at any time to give yourself the best shot at a good or excellent credit score. This means Credit Sesame will only pull purchases within this amount from your debit card to create a balance. You can also increase your security deposit as needed.
How Much Does Sesame Cash’s Credit Builder Cost?
There’s no cost to use Sesame Cash’s Credit Builder. Account Holders do not pay monthly maintenance fees, and there are no minimum monthly balance requirements – just a security deposit to jumpstart your credit building journey.
Get Rewarded for Increasing Your Credit Score
Credit Sesame will pay you $10 when your credit score improves by 10 to 99 points in a 30-day period. The reward increases to $100 when your score goes up by 100 or more points in the same cycle. (2)
How to Get Started with Sesame Cash Credit Builder
Get started with Sesame Cash by creating an online account. It only takes 90 seconds and can be done online or via the mobile app. Even better, there’s no credit check or monthly fees.
You’ll also enjoy an assortment of perks, like daily credit score refreshes (3), direct deposit up to two days early (4), cashback from your favorite retailers (2) and monetary rewards for improving your credit score. (1)