Managing your credit is all part of adulthood. However, you may not know where to start, how to repair your credit or what can be done to enhance your credit score. Read through the options listed here, looking for the sort of credit builder app or program that’s most appropriate for you. Everyone is different, and while you may get recommendations from friends, family or even professionals, you should do your own research and customize an approach to handling your credit.
What is a Credit Builder Program?
A credit builder program is any app, program or financial tool that aims to help you improve your credit while giving you access to cash or a line of credit. Yes, you want to build your credit, but you want more financial options at the same time.
Moreover, a credit builder program should give you financial information, teach you about credit and much more. Instead of looking into financial tools that should improve your credit, find something that is designed to help raise your credit score, build or repair credit.
How Does a Credit Builder App Help You?
A credit builder app gives you a credit card, loan or line of credit that will then report to the credit bureau. The line of credit is generally very low, but it serves to build up your credit report.
If you act responsibly with this small loan, card or line of credit, you are showing future creditors that you can manage your credit properly. Reporting to all 3 credit bureaus also ensures consistency in your credit reporting because you don’t know which bureau your future creditors might use.
What Type of Credit Builder Should You Use?
Credit builders come in several styles. You don’t need to go for just one credit builder over another. You may choose to use more than one at the same time. Or, you might start using one credit builder, get a handle on your finances and begin looking for another.
Credit or Debit Cards
Credit or debit cards can be used to build your credit in any situation. A credit card with a small credit limit can report to the credit bureaus, and there are even debit cards on the market that report positive results to the credit bureau.
You should be watchful for the fees and interest rates associated with these cards as they vary from bank to bank.
Credit Builder Loans
A credit builder loan could be a line of credit you can access at any time or a lump-sum payment. When you use a credit builder loan, you can spend the money on whatever you wish, make timely payments and get positive reporting to the credit bureau.
Again, you should review rates, terms and fees as these loans vary wildly from one bank to another.
When you work with MoneyLion, you can use a range of financial tools this financial platform provides to its customers. Its mission is to “help the 99% feel 100%” about their finances. To that end, MoneyLion offers several things that make money management a little bit simpler, including:
- Mobile banking on a powerful app
- A credit builder loan program
- Cash advances
- The option to get paid early
- Cashback rewards
- Zero hidden fees
- Crypto and investment accounts
- Financial tracking
Using these products and features, you can easily change your financial future and learn how to manage your money responsibly.
Learn More About Credit Building App
As you search for better ways to improve your credit, remember that you can return to Benzinga at any time for additional financial information. Today, you can work on your credit. Tomorrow, you can focus on investments and much more.
Frequently Asked Questions
Which credit building app is best?
The best credit building app for you is the one that best addresses your needs. There is a specific amount of money you require. You deserve easy access to that money. Plus, you want to ensure that the credit building app reports to all 3 credit bureaus. Combine all these factors to come to the best conclusion.
What app helps you build credit?
There are several programs that can help you build credit. You might choose a credit building card or loan, ensuring that these products report to all 3 credit bureaus. You may also work with institutions that help with rent payments, auto payments and more that help you by reporting to all 3 credit bureaus.