Cheers Credit Builder Review: How It Works and Costs

What Is Cheers Credit Builder?

 

Cheers Credit Builder is a credit builder loan offered through a financial technology company. Banking services for the product are provided by Sunrise Banks, N.A. A credit builder loan works differently from a normal personal loan. Instead of borrowing money and receiving cash upfront, the loan funds are held in a secured account while you make scheduled payments.

​

The main purpose of the account is to establish installment loan payment history that can be reported to the credit bureaus. At the end of the plan, the savings balance is returned to you minus the interest cost associated with the loan.

 

Cheers is not a credit card, debit card, or cash advance app. You do not receive a spending limit that can be used for purchases.

​

How Does Cheers Work?

 

The basic product structure is relatively simple. You select a fixed payment plan, provide the required information, and link a valid U.S. bank account. Cheers states that applicants must be at least 18 years old and have a Social Security number.

 

The account is subject to identity verification and consumer report review by Sunrise Banks. Cheers states that no hard credit check is required to apply. Once the account is active, you make scheduled payments. Cheers reports payment activity to Experian, Equifax, and TransUnion.

 

The money associated with the credit builder loan is held in a Certificate of Deposit structure. Rather than receiving the loan proceeds to spend, you gradually pay toward the account. At the end of the term, the secured savings are returned minus interest. This is why a credit builder loan should not be confused with a personal loan that provides immediate cash.

​

Does Cheers Build Credit?

 

Cheers is designed to help establish credit history by reporting an installment account and payment activity to the credit bureaus.

Making payments on time may contribute positive payment history to your credit reports. An installment loan can also add another type of credit account to a credit profile.

 

However, credit reporting does not guarantee that your credit score will increase. Credit scores consider multiple parts of your credit history. Existing late payments, collections, credit card balances, account age, new accounts, and other information can affect the outcome.

 

Cheers also states that all payment activity is reported. Late or missed payments may be reported as delinquent and could negatively affect your credit. The account is a credit-building tool, not a credit repair service. It does not remove accurate negative information from your credit reports.

​

Which Credit Bureaus Does Cheers Report To?

 

Cheers states that it reports to all three nationwide credit bureaus:

• Experian
• Equifax
• TransUnion

 

The company advertises accelerated initial reporting of the account opening and first payment within 15 days. Credit bureau reporting occurs monthly afterward. An account appearing on a credit report is different from a guaranteed credit score increase. Each credit bureau and scoring model evaluates the information in a consumer's broader credit file.

 

Is Cheers Legit?

 

Yes. Cheers is a financial technology company offering a credit builder loan product with banking services provided by Sunrise Banks, N.A., Member FDIC. The product follows a recognizable credit builder loan structure. Loan funds are held rather than provided as spendable cash, payments are reported to credit bureaus, and savings are returned according to the account terms.

 

Cheers also publicly provides plan costs, APR information, eligibility disclosures, and credit reporting details. Legitimacy does not mean the product is necessary for every consumer. The more important question is whether paying interest for an additional reported installment account makes sense for your credit profile and budget.

 

New applicants should also be aware that Cheers currently says new loan applications are temporarily paused.

​

Does Cheers Give You Money?

​

Cheers does not provide loan proceeds as upfront spending money. This is one of the most important distinctions to understand before opening a credit builder loan. A $600 loan amount, for example, does not mean $600 is deposited into your checking account for you to spend.

 

The money is held in the secured account structure while you make payments. You receive the applicable savings balance at the end of the plan, minus interest.

 

Cheers may therefore make more sense for someone interested in building reported payment history and setting aside money over time. It is not designed for emergency expenses or immediate cash needs.

 

Cheers Pricing and Costs

 

The Cheers website currently displays four 24-month credit builder plans with 25 total payments.

 

The Starter plan is advertised at $7 per month. Total payments are $175, the amount returned is listed as $151.60, and the total interest cost is $23.40. The advertised APR is 15.00%.

 

The Builder plan is $24 per month. Total payments are $600, with $532.70 listed as the amount returned and $67.30 in total interest. The APR is 12.15%.

 

The Achiever plan is $46 per month. Total payments are $1,149.98, with $1,021.69 returned and $128.29 in total interest. The APR is 12.15%.

 

The Max Builder plan is $144 per month. Total payments are $3,600, with $3,197.82 returned and $402.18 in total interest. The APR is 12.15%.

 

Cheers states that it does not charge application, maintenance, or early cancellation fees. These payments should not be viewed as monthly membership fees. They are payments connected to a credit builder loan. The difference between the total amount paid and savings returned reflects the interest cost.

 

Because new applications are currently paused, consumers should verify available plans and loan terms if Cheers begins accepting new applications again.

​

Key Features

​

The primary feature is three-bureau reporting. Payment activity is reported to Experian, Equifax, and TransUnion rather than only one or two bureaus. Cheers also offers automatic payments. Autopay may make scheduled payments easier to manage, although users still need to keep enough money in the linked bank account.

 

The savings structure is another major part of the product. Money is held through the credit builder arrangement and returned minus interest according to the plan terms.

 

Cheers states that funds are FDIC insured up to applicable limits through Sunrise Banks, N.A., Member FDIC.

The product does not include a credit card or spending feature. Its focus is the credit builder installment account.

​

Who Is Cheers Best For?

​

The product may fit consumers with a thin credit file who want to add reported installment payment history. It may also appeal to someone who prefers fixed monthly payments instead of managing a credit card balance. The account does not require purchases or credit utilization management because there is no revolving spending limit.

 

Consumers who want to combine structured savings with credit reporting may also find the product format easier to understand.

The account may provide less value for someone who already has established installment loans and a strong payment history. It also does not directly address high credit card utilization or remove negative credit report information.

 

Anyone who needs immediate access to borrowed money should consider a different product category.

​

Potential Benefits

​

Reporting to all three credit bureaus gives the account the opportunity to establish payment history across all three credit files. The fixed payment structure can also be simpler than a credit card for consumers who do not want to manage purchases, statement balances, and credit utilization.

 

There is a savings component because part of the money paid into the plan is returned. This differs from a subscription where monthly fees are generally spent solely for access to a service. Cheers also states that no hard credit inquiry is required to apply. Avoiding a hard inquiry may matter to consumers who are limiting new credit applications.

​

Potential Drawbacks

 

The product charges interest. You receive less money back than the total amount paid over the life of the plan. The savings are also not intended to function as immediately available cash. A credit builder loan is a poor substitute for an emergency fund if you need money that can be accessed quickly.

 

The advertised plans use a 24-month term. Consumers looking for a shorter scheduled credit-building commitment may prefer a different account structure. New loan applications are currently paused, which is an immediate limitation for anyone researching Cheers with the intention of opening an account now.

 

Finally, taking on a new credit account does not guarantee a higher credit score. The impact depends on the rest of your credit history.

​

Common User Feedback

 

Public consumer feedback for Cheers is still limited compared with larger credit-building companies. This makes it difficult to identify long-term patterns with the same confidence available for products with thousands of reviews. Positive feedback commonly mentions a simple setup process, automated payments, and the combination of credit reporting with savings. Some users also report positive credit score changes, although individual reviews do not prove that another consumer will have the same result.

 

Critical feedback has included concerns about cancellation communication, customer support responsiveness, and credit reporting visibility. Cheers has publicly responded to some negative reviews, including disputes involving cancellation and reported payment activity.

 

Because the public review sample remains small, consumers should be cautious about drawing broad conclusions from either highly positive or highly negative individual experiences.

​

Important Risks and Limitations

 

Late or missed payments are an important risk. Cheers states that payment activity is reported and delinquent payments may negatively affect credit. The monthly payment should therefore fit comfortably within your budget. Choosing a larger plan solely because it involves a larger loan amount may create unnecessary payment risk.

​

Closing an account can also affect a credit profile differently depending on the consumer's overall credit history. Cancellation should not be assumed to have no credit reporting impact simply because Cheers does not charge an early cancellation penalty.

 

The product also cannot guarantee a specific score increase. Consumers with collections, charge-offs, high revolving balances, or other negative information may see different results from someone establishing credit for the first time.

​

Customer Support

 

Cheers lists support by email at support@cheers.credit. The company also provides product information and disclosures through its website. A clearly advertised customer support phone number or dedicated in-app live chat option was not verified at the time of this review.

 

Some limited public feedback has raised concerns about support and cancellation communication. However, the available consumer review sample is currently too small to characterize the overall quality of customer support with confidence.

​

Final Thoughts

 

Cheers is a credit builder loan designed to create reported installment payment history while holding money in a secured savings structure. It reports payment activity to Experian, Equifax, and TransUnion and offers fixed 24-month plans with interest. The product may be useful for someone with limited credit history who wants a structured payment account without managing a credit card. The savings component may also appeal to consumers who prefer to receive part of their payments back at the end of the plan.

 

However, this is not immediate cash or a spendable credit line. Interest reduces the amount returned, missed payments may negatively affect credit, and credit score improvement is never guaranteed.

 

New loan applications are also temporarily paused. If applications reopen, consumers should review the current loan terms and choose a monthly payment that remains manageable for the full plan.

​

Frequently Asked Questions

​

Is Cheers Credit legit?

 

Yes. Cheers is a financial technology company offering a credit builder loan with banking services provided by Sunrise Banks, N.A., Member FDIC.

 

Does Cheers build credit?

 

Cheers reports payment activity on a credit builder installment account. On-time payments may help establish payment history, but a credit score increase is not guaranteed.

 

Which credit bureaus does Cheers report to?

 

Cheers states that it reports to Experian, Equifax, and TransUnion.

 

How much does Cheers cost?

 

Advertised plans range from $7 to $144 per month. The Starter plan has a 15.00% APR, while the other displayed plans have a 12.15% APR. New applications are currently paused.

 

Does Cheers require a credit check?

 

Cheers states that no hard credit check is required to apply. Applicants are still subject to identity verification and consumer report review by Sunrise Banks.

 

Does Cheers give you money upfront?

 

No. The credit builder loan funds are held in a secured account structure rather than provided as spendable cash upfront.

 

Can you cancel Cheers early?

 

Cheers states that customers can cancel without an early cancellation penalty and receive savings accumulated to that point minus applicable interest.

 

Can Cheers hurt your credit?

 

Potentially. Cheers states that late or missed payment activity may be reported to the credit bureaus and could negatively affect your credit.