You’re in the right place if you’re trying to raise and/or boost your credit score. We have researched and curated a list of the top-rated credit-building apps available to do so.
When deciding whether or not to grant you a loan, lenders will take a look at your credit score. The loan terms they are ready to offer depends on your credit score. Your credit score may significantly impact your life, despite being only a three-digit number.
Thankfully, you can rely on credit-building apps to manage and increase your credit score.
As soon as you start looking for an apartment, take out a loan or apply for a credit card, you learn how important having a good credit score is. Having a good credit score, which starts at 670 on the FICO scale, is the only way to get the best terms on your loans. Good credit generally means lower interest rates, which allows you to pay less over the life of your loans than someone with poor credit.
If you don’t yet have a good credit score, there are many ways you can start building it. One of those ways is using a credit builder app. These apps help you track your score, take out loans to build your score, and provide the education you need to build and maintain good credit.
Key Takeaways
- The average credit score in America is 716.
- 8.3 percent of adults in the U.S. have no credit or are credit invisible.
- Credit card debt, a major credit score factor, is $5,988 on average.
- Alaska has the highest credit card debt on average, while Wisconsin has the least.
What is a Credit Building App?
Now more than ever, you can improve your credit score by applying for credit cards and using apps and services that help develop credit. Credit-building apps are designed to help people build their credit and obtain access to better financial services. Typically, these applications give consumers access to credit monitoring services, which notify them if their credit reports change. Even individualized credit counseling and loan offers are available through some apps.
These apps offer a user-friendly platform to monitor their credit history, comprehend their credit score, and make wise financial based decisions. The features of a credit-building app vary by provider, but most offer the following options:
Credit score tracking
Credit Report Monitoring
Budgeting Tools
- Loan Offers
- Credit Advice
- Financial Literacy Resources
How Credit Building Apps Help Build A Good Credit Score?
Credit-building apps, as their name suggests, work in various ways to help you improve your credit score. Credit-building apps can assist you in establishing and maintaining a good credit score by offering personalized advice and guidance on how to do so. You’ll generally find three types of apps:
Credit monitoring services
- Credit building lenders
- Credit reporting services
The Best Credit-Building Apps
Kikoff
Who this is best for: those who want a small, low-maintenance monthly payment
Kikoff’s main product, the Kikoff Credit Account, is a revolving line of credit that you can draw from like a credit card. You’ll get a credit line of up to $750 that you can borrow from to make purchases from the Kikoff store. Then, you can make online monthly payments and can start to see your credit slowly tick up. When you sign up, there’s no credit check, and you’ll be approved instantly.
The account costs $5 per month to keep open, but the good news is that the $5 is part of your credit line, meaning you will build credit, even if you don’t borrow anything on top of that $5 monthly fee. You also won’t pay any interest or late fees, making it easy to focus on paying down your small purchases. On average, Kickoff reports that their users raise their scores by 58 points.
Self
Who this is best for: those who want Credit Builder Loans
Self offers a Credit Builder Loan, meaning you’ll pay down the small loan, and once you’ve made all your payments, you’ll get access to the money. While you’re making these payments, Self holds your money in a CD, or a certificate of deposit.
You can choose $25, $35, $48 and $150 for your monthly payment, depending on your budget and how much you want to have available to you once you pay off the loan.
GrowCredit
Who this is best for: those who want Credit Builder Loans
- Grow Credit offers accessible and affordable memberships and reports your bill payments to all three credit agencies. It feature makes it stand out amongst the different apps on the list. As a result, it ranks as one of the finest apps available when trying to establish fast credit and remaining on a tight budget. Your spending limit might initially be on the low end.
Still, the Growcredit app will periodically raise the balance and moves you up to a larger spending limit after making a set number of on-time payments.
Kovo
Who this is best for: those who want Credit Builder Loans
- Give yourself the credit you deserve. Sign up to build your credit easily with small monthly payments. Instant approval, no credit check, and no hidden fees. Plus, earn up to 1% on featured loans! The ideal alternative to secured credit cards.
Conclusion
Those are the best credit-building apps we came across in our research. The best credit-building software for you may depend on your individual requirements. You have enough money to put money down on a secured card. Alternatively, you can decide that a modest monthly payment aligns with your financial situation.
You might also desire a mechanism to receive credit for purchases you have previously made. Regardless of the scenario you are stuck in, these apps will surely aid you in improving your credit score.