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3 min read Published August 09, 2024
Jennifer Gorman 
Written by
Aylea Wilkins 
Edited by
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A good credit score (670 or higher on the FICO scale) makes life easier. It helps you qualify for the credit cards and other loans you want and at better interest rates. Even if you don’t plan to borrow money, good credit can come in handy when renting an apartment or getting a new job.
If you’re among the third of Americans with poor or fair credit — or the 17% percent with no credit score at all — there are many ways to work toward a good score. One of those is to use a credit-building app.
How credit-building apps work
Credit-building apps work in various ways to help you improve your credit score. You’ll generally find four types to choose from:
- Bill payment apps: Apps like StellarFi pay your bills on your behalf, and you reimburse them with your connected bank account. The payments are then reported to the credit bureaus to help you build credit.
- Credit-building lenders: Apps like MoneyLion and Self offer small loans designed to help build your credit. The idea behind credit builder loans is to regularly make small payments to improve your payment history.
- Credit monitoring services: Credit monitoring apps like myFICO let you see your credit score and alert you to changes. Some apps offer suggestions for improving your credit.
- Credit reporting services: Services like Experian Boost help you build credit by reporting payments not typically considered on credit reports, like rent and utility bills.
Top credit building apps for iPhone and Android
Most of the top credit apps are available for iPhone and Android devices. Many also have websites that offer the same services.
Best for people with limited or no credit history
Experian Boost
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Experian, one of the three major credit bureaus, offers an easy way to start building a credit history.
Its free Experian Boost service reports payments that typically aren’t included in your credit score, like your rent, cellphone bill and utilities. You can choose which bills you want to share, and only your on-time payments are reported.
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Pros
- Affects your credit score instantly
- Boosts scores by an average of 13 points
- Free to use
Cons
- Gives Experian access to your personal spending data
- Not guaranteed to improve your score
- Only affects your Experian score (not Equifax or Transunion)
Best for people who pay for monthly subscriptions
Grow Credit
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Grow Credit is an app that helps you build credit through the monthly subscriptions you already pay for. You get a Grow Debit Mastercard to pay for subscriptions, and the payments are reported to the credit bureaus.
You can choose from three membership plans, depending on the monthly spending limit you need. The basic plan is free for the first 12 months.
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Pros
- Available to people with limited credit or no credit history
- Grow Credit claims it can increase users’ scores by up to 44 points
- Supports over 100 subscriptions, including Netflix, Spotify and Disney Plus
Cons
- Highest available spending limit is $150 per month
- Must link your bank account via Plaid when you sign up
- Some subscriptions only available with higher-tier plans
Best for people with no credit score or a poor credit score
Kikoff
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Kikoff offers a few products to help consumers build credit. The main product, the Kikoff Credit Account, offers a revolving line of credit of up to $750 that you can draw from like a credit card.
It only costs $5 per month to keep open, and your on-time payments are reported to the credit bureaus. Kikoff says users with credit scores under 600 see an average increase of 58 points.
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Pros
- Instant approval
- No credit check required
- No interest fees or late fees
Cons
- Funds can only be used in the Kikoff store
- May result in bank fees when your account is debited
- Missed payments may be reported to credit bureaus
Best for people who want to build credit with a small, short-term loan
MoneyLion Credit Builder
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The MoneyLion app offers a range of financial products for consumers, including a credit builder loan.
You can apply for loan amounts up to $1,000. If approved, you pay off the loan over 12 months and have your payments reported to the credit bureaus. After you make all your payments, you receive the loan funds. You can use that money for nearly any purpose, including kick-starting your savings.
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Pros
- Make payments through the MoneyLion app
- No hard credit check required
- Can pay off the loan early without penalties
Cons
- Gives MoneyLion access to your spending data
- Loan interest rate can be as high as 29.99% APR
- Requires a Credit Builder Plus Membership ($19.99/month)
Best for people who want to monitor their FICO score
myFICO
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myFICO gives you access to your FICO score, the most widely used credit score. Its credit monitoring feature alerts you to changes on your credit report, like hard inquiries or newly opened credit accounts.
There are three plans to choose from, with costs ranging from $0 to $39.95 per month. The plans offer different services and update frequencies.
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Pros
- Cancel at any time
- Monitor changes in your credit score
- Paid plans include identity theft insurance
Cons
- Free plan only covers one credit bureau (Equifax)
- No free trial available for paid plans
- Paid plans are relatively pricey
Best for people who want a credit builder loan and a secured credit card
Self
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Self offers credit builder loans. You don’t get access to the money until the end of the loan term, once you’ve made all your payments.
Each payment is reported to the credit bureaus to help establish your credit history. Depending on your budget and how much you want to get back once you pay off the loan, you can choose $25, $35, $48 or $150 for your monthly payment.
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Pros
- Can make loan payments with cash
- Eligible borrowers can get a Self Visa® credit card
- No hard credit check
Cons
- Convenience charges to pay with a debit card
- Fees for late payments
- Interest rates in the double digits
Best for people who want to build credit with regular bills
StellarFi
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StellarFi is a mobile app that lets you get credit for your regular bills, including rent payments, utility bills and car payments. It pays the bills on your behalf, then you automatically repay StellarFi with your checking account. Your on-time payments to StellarFi get reported to the credit bureaus to help you build credit.
The company offers three membership tiers with monthly fees ranging from $4.99 to $29.99.
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Pros
- No hard credit check
- Offers a 30-day trial of its Prime plan for $0.99
- Option to pause and reactivate your membership
Cons
- Only reports to Experian and Equifax
- Reliance on a third party to pay your bills
- Required to link your checking account to the app
Other ways to build credit
Credit builder apps can be a good way to build your credit, but they’re not the only option. Some other ways to build credit include:
- Becoming an authorized user: You can piggyback off a friend or family member’s good credit by becoming an authorized user on their credit card. Their activity will show up on your credit report.
- Catching up on your unpaid bills: When you miss payments, the debt may be sold to a collections agency. This gets reported to the credit bureaus and can hurt your score.
- Considering a secured credit card: Secured credit cards are for people with bad credit or no credit and require a cash deposit to get started. They help you build credit over time, and the best secured credit cards even offer rewards with no annual fee.
- Disputing errors on your credit report: Incorrectly reported balances, duplicated accounts and other errors can drag down your credit score. You can get free weekly credit reports at AnnualCreditReport.com to review your information.
- Working to get or stay out of debt: Your credit utilization ratio is the percentage of your available revolving credit you’re currently using, and it’s one of the most important factors of your credit score. Aim to use less than 30% of your credit limit at any given time.
The bottom line
The top credit-building apps can help you build credit from scratch or repair your credit after past financial troubles. Many feature free or low-cost plans to make credit building accessible on almost any budget.
If you plan to use a credit-building app, think about your goals to choose the right type of app for your situation. Consider the costs of using the app and read the fine print to ensure you know what you’re signing up for.
Frequently asked questions
Credit builder apps offering short-term loans and alternative data reporting can improve your credit score. Their effect will vary depending on many factors, including the app you choose, your current score, and your credit history.
The apps on this list are all offered by legitimate companies. However, if you plan on using other apps, read the fine print carefully. Consider vetting services by reading customer reviews and checking the Consumer Financial Protection Bureau’s complaints database.
If you have no credit history, it can take at least six months of credit activity to get a FICO score. Building credit after a bankruptcy or other significant setback takes longer, but you might see improvements after a couple of years of responsible financial behavior.
