How to Use Credit Building Apps to Boost Your Credit Score
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Even though it’s just a three-digit number, your credit score can significantly impact your life. The best credit-building apps can help you improve your score.
Lenders will look at your credit score when deciding whether or not to give you a loan. Plus, your credit score will influence the loan terms they are willing to offer you.
If you want to boost your credit score, you are in the right place. Here are the top-rated credit-building apps to help you improve your credit score.
10 Best Credit Building Apps To Improve Your Credit Score
A credit-building app can fast-track your journey to a good credit score. But with seemingly unlimited options, finding the best app for your situation can be difficult.
Regarding their Trustpilot scores, here are the top credit-building apps to help you achieve your credit goals.
1. Kikoff
Kikoff offers a unique spin for credit builders. You can instantly sign up for a Kikoff credit account. Once approved, you’ll have a $750 line of credit. The catch is that you can only use the credit line in the Kikoff store. After using the line of credit, you must make on-time payments to build your credit score.
Although you can only use the line of credit through the Kikoff store, the saving grace is the lack of fees. There are no administrative fees, annual fees, late fees, or interest charges.
The revolving line of credit can potentially boost your score. Unfortunately, Kikoff will only report your payments to Equifax and Experian. With that, you’ll miss out on positive activity reports to the third credit bureau, TransUnion.
Learn More: Kikoff Review
2. MoneyLion
MoneyLion is another well-rated credit-building app. According to MoneyLion, its Credit Builder Plus product has been proven to build credit. Over half of MoneyLion members report an increase of 42+ points within 60 days, which is a big jump.
You can apply for a Credit Builder Plus loan without a hard credit check. If approved, you’ll receive a portion of the funds upfront. The rest will be stored in a Credit Reserve Account for you to unlock later.
MoneyLion’s biggest downside is the $19.99 monthly membership fee. While building credit is a valuable money move, you might not have the money in your budget for this extra expense.
3. Grow Credit
Grow Credit offers a credit-building opportunity based on your monthly subscriptions. As a Grow Credit customer, you’ll receive a Mastercard that you can use to pay for your subscription services.
There are over 100 available subscriptions to add. A few popular ones include Netflix, Hulu, Disney+, Amazon Prime, and more. Once set up, Grow Credit will report your subscription service payments to the credit bureaus.
You can take advantage of this service for free. Plus, you’ll run into a monthly spending limit of $17. If you upgrade your account, you can choose a monthly spending limit of $50 or $150. That said, you’ll have to pay between $1.99 and $7.99 monthly.
Learn More: Grow Credit Review
4. Sable
Sable offers you the opportunity to build credit through a secured credit card. Depending on your card usage, you may be able to graduate to an unsecured credit card in as little as four months.
To open a secured credit card, you must deposit money up front. But if you keep up with your payments, you’ll receive your security deposit back within a few months. When you use the card, you can manage the entire experience directly from your phone. Unlike a credit-builder loan, this secured card comes with several perks.
For example, you can earn unlimited 2% cash back at certain retailers like Amazon, Spotify, Netflix, Uber, and more. Plus, you’ll get 1% cash back on all other purchases. Since it doesn’t charge monthly fees, you can start building credit without draining your budget.
5. Credit Sesame
Sesame Cash, offered by Credit Sesame, provides a virtual secured credit card. After allocating a certain amount of cash to the card, you can start making purchases. The app will report some of your monthly debit purchases to the credit bureaus to provide a history of on-time payments.
As an added twist, the company will pay you as your credit score increases. You’ll earn $100 if you increase your credit score by at least 100 points in 30 days. Sesame Cash offers a unique way to build your credit score, and the incentive of earning money to improve your score might be just the motivation you need.
6. Credit Strong
Credit Strong offers credit-builder loans with a wide variety of monthly payments. You can choose a credit-builder loan with monthly payments that range from $15 to $110. The options suite means you’ll likely find a loan product that suits your credit-building goals.
Although there is no option to receive any loan funds upfront, you will unlock all your savings at the end of the loan term. If you are trying to build credit, the range of options available through Credit Strong can be enticing.
The only downside to Credit Strong is the cost. Of course, you’ll pay interest on the loan, but you’ll also have to pay a non-refundable administration fee. Combined, these costs can add up quickly.
7. Self
With Self, you can take out a credit-builder loan that can potentially boost your credit score. Self will store your funds in a CD account and report your payments to the credit bureaus as you make payments.
Customers who work with Self may have to pay an interest rate of around 15% or higher. Plus, a $9 administrative fee is required to start the loan.
At the end of the loan, you’ll walk away with the savings you’ve built. However, the savings won’t be the sum of your monthly payment. You’ll have to factor in the interest payments that Self hangs onto.
8. Extra
The Extra debit card allows you to build credit by spending funds in your bank account. After signing up, you will receive a spending limit determined by your bank balance.
Extra will provide the funds as you make purchases and automatically withdraw payment from your bank account the next business day. Extra will report your transactions to Equifax and Experian at the end of each month. Unfortunately, Extra doesn’t report to TransUnion.
Extra is convenient because you won’t have to move bank accounts. Instead, you can connect to one of the 10,000+ supported banks².
9. SmartCredit
The SmartCredit app offers a suite of easy-to-use tools to help you add points to your score. First, use ScoreTracker to see your credit scores over time and get a complete picture of your financial journey.
Second, ScoreBoost™ allows you to maximize your credit utilization ratio within your budget. On average customers add up to +34pts to their score in as little as 30 days with this tool.
Additionally, use their ScoreBuilder®; if you have late payments, credit reporting errors, or other negative marks, they will mail or fax your creditors directly through the platform to potentially get them removed. By consistently using such features, many users have seen positive changes in their overall credit health.
10. Cheese
Do you want to improve your credit score? If so, you can try using the Cheese credit-building app. It helps people who are new to credit or have had credit problems before.
One good thing about using the Cheese app is that it can help you start a good credit history. You can use the app to buy small things and pay them back on time.
Another benefit of the Cheese app is that it helps you manage your money. You can use it to see how much you spend, set up bill reminders, and check your credit score.
Frequently Asked Questions
Before signing up for a credit-building app, it can be a good idea to understand precisely what they are and why their ability to help you with your credit can be beneficial.
What is a credit history?
Your credit history is a long-term record of your credit management. It includes information about your current credit accounts and many from the past.
A good credit history will show a solid record of consistent on-time payments of your debts. A credit history with missed payments won’t look as promising to a lender.
Ultimately, the information in your credit history will be used to determine your credit score.
Why is building good credit important?
With a good credit score, lenders are willing to offer better interest rates. This could lead to thousands of dollars in savings when financing large purchases.
In a nutshell, good credit can unlock a brighter financial future with access to more affordable financing.
When is a credit builder app a good idea?
A credit-builder app can be a valuable financial tool for those with bad or no credit. Credit-builder apps can be an excellent idea if you want to build your credit in a steady and controlled way.
With plenty of options, you can find a credit-builder app that works for your budget and credit-building goals.
Credit Building App Comparison Table
| Company | Trustpilot |
| MoneyLion | 4.7 |
| Cheese | 3.6 |
| Sable | 3.3 |
| Credit Sesame | 3.3 |
| Grow Credit | 2.2 |
| Credit Strong | 2.8 |
| Self | 2.8 |
| Kikoff | 3.3 |
| Extra | 2.7 |
| SmartCredit | 2.0 |
Summary
The best credit-building app for you will vary based on your situation. You might have the funds to deposit into a secured card. Or, you might decide that a small monthly payment fits your financial picture better.
Alternatively, you may want a way to get credit for purchases you are already making. After exploring your credit needs, the right app for you should jump out more easily. Regardless of your choice, you’ll be on the road to improving your credit quickly.
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