SeedFi Loans [An Honest Review]

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You may have heard of SeedFi, particularly that they’re great for users with not-so-great credit looking to build their way up in the world. Is it true? And what’s the catch?

We’ll be looking into all that and more below. Before we start, you should know that SeedFi offers two main products:

  1. Personal loans
  2. Revolving credit (comes with a savings account)

SeedFi personal loans

Also known as SeedFi’s Borrow & Grow Plan, this is the plan for you if you need money right away, whether it be for personal reasons or for emergencies. You can get up to $8,000, with half of that becoming available to you immediately in your own existing bank account. The rest will be stored in a newly opened SeedFi Savings Account and will only be accessible once you pay off your entire loan.

SeedFi revolving credit

Also known as SeedFi’s Credit Builder Prime, is a product that gives you a line of credit alongside a SeedFi Savings Account as well. The idea behind this product is that it allows you a chance to build up your credit, all the while rewarding you for any money that stays in your savings account through interest accrual.

The great thing about SeedFi’s line of credit is that they don’t charge any interest on it. This is in contrast to the Borrow & Grow Plan, where they will charge you interest on the amount borrowed. You also don’t need to have a credit check to get approved for it.

However, you won’t be able to user more than $500 at a time unless you pay off your line of credit.

As you make timely payments to SeedFi, they will in turn report your payments to all three major credit bureaus. In the meanwhile, you also get a chance to build up an emergency savings fund.

What bank does SeedFi use?

SeedFi partners with Cross River Bank, which is an FDIC-insured bank. You get an account opened with them via SeedFi automatically when you apply for and are approved for Credit Builder Prime.

How hard is SeedFi approval?

In order to get approved for SeedFi, you’ll need a credit score of at least 520 with an income of at least $10K per year. That’s quite the generous minimum requirement, relatively speaking. Compared to other loan companies, SeedFi is lenient, and aims to serve customers that may have not-so-great credit in a way that helps to give them a leg up in life.

Does SeedFi hurt your credit score?

As with any legitimate loan application, SeedFi will perform a credit check that translates into a hard pull. Hard inquiries do affect your credit score, usually to the tune of about 10 points lower, but it is temporary and will last for one year max.

This only applies to the Borrow & Grow Plan. If you’re applying for Credit Builder Prime, no hard inquiry needs to be done.

Can SeedFi help you get a personal loan without hurting your credit?

The hard pull or inquiry will hurt your credit score temporarily. However, if you’re using it to pay off other debt accounts, you’ll also be closing those accounts. Effectively, you are in a way consolidating your debt if you pay off multiple debt accounts and are left standing with the debt you now have with SeedFi. As such, this may also lower your credit score, due to the fact that you are lowering the average age of the accounts in your credit history. This makes up 15% of your credit score profile, believe it or not.

However, it can be worth it, as your payment history makes up a larger 35% of your overall credit score profile and can potentially be vastly improved depending on the new interest rate you’re able to obtain as well as your on-time payment habits.

How much does SeedFi cost?

SeedFi makes their money via interest on the money that they loan to you in the Borrow & Grow plan. The actual APR won’t be revealed until you apply with your information, including your credit score, income, current debt, etc. Also, if you’re late for any payment, you’ll be charged a flat $15 as penalty, but the bright side is that if you’ve completed paying off the loan in the end, you’ll get those penalty fees back in full!

In Credit Builder Prime, SeedFi charges no interest and no fees. The way they make money off of this product is by requiring that you have at least $500 in their SeedFi Savings Account. Any money in a savings account is money that SeedFi can use to their own benefit in a way that makes them money as they see fit. If you aren’t paying for the product, well, then you’re probably the product. But as long as both parties benefit, it’s all good.

Where is SeedFi available?

Unfortunately, SeedFi isn’t available everywhere. It operates in Washington, D.C. along with 36 other states.

  • Alabama
  • Alaska
  • Arizona
  • Arkansas
  • California
  • Colorado
  • Delaware
  • District of Columbia
  • Florida
  • Georgia
  • Illinois
  • Indiana
  • Kansas
  • Kentucky
  • Louisiana
  • Michigan
  • Mississippi
  • Missouri
  • Montana
  • Nebraska
  • Nevada
  • New Jersey
  • New Mexico
  • New York
  • North Carolina
  • Ohio
  • Oklahoma
  • Oregon
  • Pennsylvania
  • South Carolina
  • Tennessee
  • Texas
  • Utah
  • Virginia
  • Washington
  • West Virginia
  • Wisconsin

How long does it take to get money from SeedFi?

For Borrow & Grow, the money becomes available to you within a couple of business days. For Credit Builder Prime, you will be able to access your line of credit as soon as your SeedFi Savings Account sees $500 or more in it.

Can I pay off SeedFi early?

As long as you’ve made at least one payment or have reached the date that your first payment is due, you are allowed to pay off your SeedFi loan early without penalty. However, keep in mind that if your goal is to build your credit, you may want to keep it open, as closing an account due to paying it off early will lessen the impact your on-time payments had on that account as opposed to your on-time payments on a current or open account.

If you are looking to build or repair your credit, check out our DIY guide to credit repair.

Who is SeedFi for?

If you have a sub-par credit score, Credit Builder Prime is a great product, as long as you have $500 or more to your name or are able to get that at some point in the near future. It doesn’t require a single credit check to qualify.

On the other hand, if you need money in a crunch, your best bet is the Borrow & Grow Plan. This gets you money within a couple of business days, and even more money in your SeedFi Savings Account that you can access once you’ve repaid the loan. If the loan has been repaid in full, it’s up to you what you want to do with the rest of the money. You can either pay down something that needs to be paid down, or you can stash it for an emergency fund.

Is SeedFi worth it?

As far as Credit Builder Prime, there really is no downside to it. Savings accounts at most institutions usually yield relatively little, so if you’re main need is a line of credit, it can be worth it to stick it in SeedFi’s Savings Account which unlocks another potential $500 line of credit to your name.

In conclusion

SeedFi has some pretty good products, and if you’re a customer with sub-par credit and would like to build up your credit score for the future you, either of these options can be a good fit for you. Credit Builder Prime is the easiest to qualify for as it requires no credit check, but if you’re in need of cash, it may be worth it to apply for the Borrow & Grow Plan.

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