March 24, 2026
Cheers Credit Builder Loan Review 2026: Worth It?
What Is Cheers Financial?
Cheers Financial is a fintech company focused on helping people build credit through their credit builder loan product. The company was founded with a mission to make credit building accessible to anyone, regardless of their credit history.
Their Cheers credit builder loan is designed for people who are just starting out with credit or recovering from financial setbacks. Unlike traditional loans, Cheers doesn't check your credit score to approve you, making it a solid option if you have no credit or bad credit.
How Cheers Credit Builder Loan Works
A Cheers credit builder loan works differently than a traditional personal loan. Instead of receiving money upfront, you make monthly payments first. After you've paid off the loan, you get access to the funds.
Here's the basic process: You apply and get approved (usually without a credit check). You make monthly payments over a 24-month term. Your payments go into a savings account while you build payment history. Once the loan term ends, you receive your funds plus interest earned on your savings.
This structure means you're essentially saving while building credit. You get proof of on-time payments reported to all three credit bureaus, which helps establish or improve your credit history.
Key Features and Benefits
24-month loan term is Cheers' standard offering. This gives you two full years of on-time payment history reported to all three bureaus, which is a meaningful track record for building credit.
No hard credit check is a major advantage if you have no credit or bad credit. Cheers typically uses alternative verification methods instead of a traditional credit inquiry, so you won't see a ding to your credit score just from applying.
Funds you can access make this different from some competitors. Other credit builders lock your money away as collateral. With Cheers, you get your savings back after paying off the loan.
Credit bureau reporting happens monthly. Cheers reports your on-time payments to Equifax, Experian, and TransUnion, which is critical for building a solid credit history.
Fees and Costs
Cheers charges an interest rate on your loan. The exact rate depends on your loan amount and other factors, but it's typically competitive with other credit builder products.
There's usually an origination fee, which is deducted from your loan amount upfront. This is standard across credit builder loans, so it's worth factoring into your decision.
Monthly maintenance fees are minimal or non-existent with Cheers, making it a fairly transparent product cost-wise. What you see is mostly what you pay.
Cheers Credit Builder Loan
AI-powered credit builder with accelerated reporting to all 3 bureaus, designed to make credit building simple and affordable.
Loan Amount
Multiple plans (starting at $24/mo)
Term
24 months
APR
12.15% (fixed)
Admin Fee
$0
Monthly Fee
$0
Credit Check
No
Average Score Increase
95% of users with fair credit see a 20+ point increase in just 2 months
Who Is Cheers Credit Builder Best For?
Cheers works best if you're new to credit and want to build history from nothing. It's also ideal if you have bad credit and need a fresh start without the judgment of a credit check.
People saving for a goal while building credit find this appealing. Since your money returns to you, you're not losing anything in the process, just gaining credit history.
If you're comfortable with a 24-month commitment, Cheers provides a solid runway to build meaningful credit history and establish on-time payment patterns.
Cheers vs. Other Credit Builders
Cheers vs. Self is a common comparison. Self is one of the largest credit builder platforms, with more flexibility around loan terms. Self reports to all three bureaus and offers similar no-credit-check approval. Both are solid, but Self has slightly more brand recognition and a longer track record in the credit building space. Read our Self Credit Builder review for a detailed look.
The main difference is that Self has been in operation longer and has built a larger user base. This doesn't necessarily mean it's better, but it means more reviews and user experiences exist online. Both products deliver on the core promise of building credit through monthly reporting.
Cheers vs. Kikoff is another popular question. Kikoff focuses on building credit for immigrants and people with thin credit files. It's also no-credit-check and reports to all bureaus. Kikoff's monthly fees are slightly different, so compare exact costs for your situation. Read our Kikoff review for the full details.
Kikoff also includes educational content specifically tailored to building credit in America, which appeals to international users. If you're an immigrant or international student building credit from scratch, Kikoff's added resources might be worth comparing.
Cheers vs. Upgrade is worth mentioning. Upgrade offers credit builder loans plus a secured credit card combo product. If you want both at once, Upgrade bundles them. Cheers requires you to add another product separately, but you get more choice this way.
The main difference between all these products is how they calculate interest and fees. All three are legitimate credit-building tools, so your choice often comes down to which fee structure fits your budget best, UI preferences, and whether you want additional features bundled in.
Pros and Cons
Pros include no credit check approval, legitimate credit building through three-bureau reporting, getting your money back, and transparent pricing with minimal hidden fees. You're essentially saving while establishing payment history, which is hard to beat. The speed of credit improvement rivals specialized products, and there's no judgment in the approval process.
An often-overlooked benefit is that you're forced to save money while building credit. Many people struggle to save, so this structure provides the discipline needed to accumulate emergency funds while improving their credit.
Cons include the fact that you won't get immediate cash (unlike a traditional personal loan), interest costs that reduce your net savings (though it's typically modest), and the need for consistent monthly payments over the full 24-month term. Missing a payment could significantly hurt your credit score, so this isn't ideal if your income is unpredictable or unstable.
Some people find the 24-month commitment restrictive. If you're in a tight financial situation, adding another monthly payment for two years might not be realistic right now. You need to be confident in your income stability before committing.
Additionally, the impact on your credit score depends on other factors in your credit profile. If you have recent negative marks or other financial issues, credit builder loans alone may not be enough.
How to Sign Up for Cheers
The application process is straightforward and takes about 10 minutes. Visit Cheers Financial's website and fill out their application form. You'll provide basic personal information including your name, address, employment status, and income. The form is intuitive and guides you through each step.
Cheers will verify your identity and income through alternative methods that don't involve a hard credit pull. This typically takes a few minutes to a few hours. You may need to provide recent pay stubs or bank statements to verify income, but they're flexible with documentation.
Once approved, you'll select your loan amount based on what you're comfortable committing to over 24 months. Then you'll set up automatic monthly payments from your bank account, which ensures you never miss a payment.
Your first payment is usually due about 30 days after funding. Some users report faster funding (same day or next business day), while others experience a typical 1-3 business day timeline.
The entire process from application to first payment is usually completed within a week.
Building Credit Beyond Cheers
While a credit builder loan is a strong starting point, credit scores depend on several factors working together. Payment history is the biggest piece at 35%, but you'll also want to keep credit utilization low and avoid too many credit inquiries. A comprehensive approach yields better results than relying on Cheers alone.
Supplement your credit builder loan with additional strategies to build credit fast. Open a secured credit card like Self Visa® or Ava Credit Builder Card. Check out our Ava review for more on their products. You can also use Experian Boost to report utilities, or enroll in rent reporting services. These run in parallel with your Cheers loan and compound the improvement.
Consider using tools like Creditship to monitor your credit progress over time. You'll see exactly how your credit score moves as you make on-time payments with Cheers and implement other strategies. Monitoring helps you understand what's working and what isn't.
Don't close the loan account immediately after paying it off. Keep it open indefinitely to maintain your credit mix and payment history, which both help your score long-term. The older your account, the more valuable it becomes to your credit profile.
After your Cheers loan matures and you've built solid payment history (typically 6-12 months of perfect payments), you may qualify for regular credit products like unsecured credit cards or better loan terms.
FAQ
Does Cheers approve everyone? Cheers doesn't do a hard credit check, but they do verify income and identity. Most people get approved, but they're not a guaranteed approval product.
How much does a Cheers credit builder loan cost? The total cost depends on your loan amount and interest rate, but expect to pay a few percentage points in interest plus any origination fee. It's usually between 3-10% of your loan amount.
How much will my credit score improve? This varies based on your starting point and other credit activities. Most people see a 30-50 point improvement within 6 months of on-time payments, though some see more.
Can I get my money before the loan ends? No, that defeats the purpose of the credit builder loan. However, you can access your funds immediately once the final payment is made.
Is Cheers a credit card or loan? Cheers is a credit builder loan, not a credit card. It works more like a savings tool with credit reporting built in.
How does Cheers compare to secured credit cards? Both build credit, but loans typically boost your score faster because they add to your credit mix. A secured credit card requires a deposit but gives you actual credit to use.
Cheers Credit Builder Loan
AI-powered credit builder with accelerated reporting to all 3 bureaus, designed to make credit building simple and affordable.
Loan Amount
Multiple plans (starting at $24/mo)
Term
24 months
APR
12.15% (fixed)
Admin Fee
$0
Monthly Fee
$0
Credit Check
No
Average Score Increase
95% of users with fair credit see a 20+ point increase in just 2 months
Firstcard Educational Content Team - March 24, 2026
