Grain Review

Building credit is tricky and Grain tries to make it a little easier.

On the one hand, lenders want to see a solid history of credit management to lend you money. But on the other hand, lenders are less willing to provide a loan without a history of responsible management. It’s a classic circle that can be challenging to break out.

Fortunately, credit-building apps can speed up your credit journey. Grain is a credit builder app that promises to help you build credit through a digital credit card based on your cash flow.

Let’s take a closer look at Grain to decide if it’s the right move for your credit goals.

Grain LogoDigital credit card based on your cash flow Currently only available on iOS Reports account activity to all three credit bureaus

What is grain?

Grain is an app that gives you a digital credit card based on your income. That’s a fancy name for a line of credit that will be deposited into your checking account so you can use the same debit card with this new line of credit.

Instead of checking your credit score, you can get approved through your cash flow. If approved, Grain will not issue a physical debit card. Instead, the company offers a line of credit on your existing checking account.

Grain’s team says: “We took our own bait and swapped the credit industry’s traps – we’ve spent years paying off large amounts of bad debt at high interest rates, so we’ve built something better. A platform that puts your interests ahead of shareholders’ profits.”

What does it offer?

If you’re looking to build credit, Grain can be a handy option. This is what Grain can offer you.

Revolving credit line

Working with Grain starts with linking your current debit card to the platform. Grain works with over 10,000 banks, so it’s more than likely your bank is on the list.

Once linked, Grain analyzes your cash flow. Depending on the cash flow to your account, Grain may pre-approve you for a revolving line of credit. If approved, you can transfer funds to your checking account to use as you see fit.

Grain will set an automatic minimum payment of 10% of the loan amount. However, you can choose to pay it off immediately to avoid interest charges.

How Grain Works Screenshot

Reporting to all three credit bureaus

Grain reports your credit activity to all three credit bureaus each month. Since you’ve set up automatic payments to track your Grain payments, you should see a history of on-time payments that builds on your credit report.

Of course, missing payments would result in a negative number on your credit score. That’s why it’s critical to make sure your payments are scheduled and going through. Otherwise, your credit score can easily make a mistake.

App for iOS users

As of February 2022, the Grain app is highly rated by iOS users. With over 31,000 reviewers, the app has earned 4.7 out of 5 stars. Based on these reviews, we can safely say that iOS users will have a pleasant experience with the app.

But currently there is no Andriod version of the app for users. As a result, a large number of potential users will not be able to enjoy what Grain has to offer.

Are there any costs?

When building credit through a service, it is very difficult to avoid costs. So it is not surprising that you will have to pay relatively high costs when working with Grain.

You will encounter a 1% financing fee with each withdrawal. While you are using your line of credit, there is a 15% APR (or 17.99% APR if you are not using an automatic payment).

There may also be an application fee of 7.5% of your unsecured credit limit. Plus an annual service fee of 8% of your credit limit.

Finally, there are also late payment fees up to $5.

All these costs can add up considerably. Keep this in mind if you decide to work with Grain.

How does grain compare?

Grain isn’t the only credit-building option for those looking to spend with their debit card. Another good option is Grow Credit, which offers a free way to build credit for those who already pay for subscription services like Hulu or Netflix.

Credit-building loans can be a smart move if you want to try a different approach. Credit Strong offers credit building loans with amounts ranging from $1,000 to $5,000. Instead of a revolving line of credit, a credit-building loan is a unique installment loan. You will receive the borrowed money at the end of the term after you have built up the savings over time.

Ultimately, the best credit-building tool is different for everyone. But if you’re looking for a debit card option that works with your iOS phone, Grain is a good fit.

How do I open an account?

You need to download the Grain app in the iOS app to get started.

After downloading, you must upload documents proving your identity. For example, you can provide your government-issued ID, a utility bill, a bank statement, or a selfie.

Then you link your bank account. Next, Grain scans your transaction history and determines if it can offer a revolving credit. If so, Grain may or may not ask for a deposit to secure the line of credit. And that’s it! It should not take more than a few minutes.

Is it safe and secure?

Yes, Grain uses 256-bit bank-level encryption to protect your information. Plus, Grain is FDIC insured to make sure your money is safe no matter what.

With all these protections, you should feel comfortable working with Grain.

How do I come into contact with grain?

You can contact Grain through their customer support form. Or call the grain helpline at 1-833-755-0809.

Another way to get in touch is through social media. Grain is available on Twitter and Instagram @grain_tech, Facebook @graintech and LinkedIn @grain-technology.

The jury is in agreement on whether you’ll find a smooth customer service experience. The company has rave reviews in the Apple App Store. But it has been rated 1 out of 5 stars by the Better Business Bureau.

Is it worth it?

Grain offers a solution for those who want to build credit without changing their spending method. You can continue to use your regular debit card and still potentially increase your credit through Grain.

A major drawback is the fees. But you will find that most lending services will cost a similar portion of your budget. Another problem with Grain is that it is limited to iOS users. While that may change in the future, Grain is not currently available to Android users.

Ultimately, Grain is a tool that helps you build credit. But you still need to pay on time regularly to reap the most benefits. Take the time to evaluate your finances to determine if building credit is your top priority right now. If so, consider Grain as one of the other solutions such as credit-building loans and other credit-building apps.

Grain Characteristics

7.5% of your credit limit

Uses your existing checking account

Monday through Friday, 8am-5pm (EST)

Web/Desktop Account Access

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