7 Best Credit-Building Apps

The average American has a credit score of 717, as reported by the credit scoring service FICO. On the flipside, about 12.6% of Americans have a credit score between 300 and 579, as noted by Experian. If you have bad credit or no credit history, it might be difficult to build your credit history because lenders may not approve you for typical credit-building products like credit cards or loans — but you don’t have to take that traditional path to boost your credit.

Credit-building apps offer an alternative way to help build your credit history. The best credit-building apps feature products like credit-building loans, secured cards with no interest charges, and no hard credit checks. There are even apps that help build credit history with subscription services you already pay for every month.

7 best credit-building apps

• Best overall and for rent reporting: Self Credit Builder
• Best free app: Step Visa Card
• Best for budgeting: Cleo Credit Builder Card
• Best for building credit with courses: Kovo Credit Builder
• Best for building credit with subscriptions: Grow Credit
• Best for security features: Cred.ai
• Best credit-building loan: OnePay Credit Builder

Finder Score	Fee	Minimum deposit to open	Requirements	Credit Bureaus
Best overall and for rent reporting
Not scored yet Self Credit Builder	Not scored yet	From $0 per month	$0		Equifax, Experian, TransUnion	Go to site View details Compare product selection Compare	loading	Why we like it Self easily takes the best overall slot for its stellar and affordable credit-building app, free rent reporting, and no hard credit checks on most of its products. The free rent reporting service reports to the three major credit bureaus, and there's also a feature called 'Lookback,' which reports up to two years of past rent payments for a one-time $49.95 fee. It also offers credit-building loans with its Credit Builder Account and a secured Self Visa® Credit Card — both have no hard credit check. The Self app earns a high 4.5 stars on Google Play and great 4.9 stars on the Apple App Store. Pros & cons Pros No hard credit checks on most services Free rent reporting to all three major bureaus 'Lookback' feature reports past rent payments Cons Debit card payment fees on credit-building loans Utility payments only sent to TransUnion
Best free app
9.4 Excellent Step Visa Card	9.4 Excellent	$0 per month	$0	No age requirements; opt-in available at 18 to report positive credit history to bureaus.	Equifax, Experian, TransUnion	Go to site View details Compare product selection Compare	loading	Why we like it Step offers a free secured card for all ages and one of the best free credit-building apps. There are no membership fees, interest charges or overdraft fees, and there's no hard credit check. The secured card is backed by the Step deposit account, and your credit limit is based on what you have deposited, so you won't have to worry about overspending. With the autopay feature Smart Pay, your owed balance is repaid every month. Step also reports payments to all three credit bureaus. In addition, earn cashback rewards of up to 3%, check out the optional investing platform and earn savings rewards if you meet deposit requirements. App users are also satisfied, showing a 4.6-star rating on Google Play and a 4.7-star rating on the App Store. Pros & cons Pros No monthly, APR or overdraft fees No hard credit check Reports to all three major bureaus Cash back and savings rewards Cons Online only Not designed for emergencies
Best for budgeting
8.8 Great Cleo Credit Builder Card	8.8 Great	$14.99. per month	$1	Requires bank account	Equifax, Experian, TransUnion	Go to site View details Compare product selection Compare	loading	Why we like it Cleo's financial app is full of budgeting, credit-building and savings features. The secured Cleo Credit Builder Card and Credit Builder membership are made for building credit, and costs $14.99 per month if you want the secured card. Cleo has no credit score requirements and doesn't do a hard credit pull, and your balance is repaid automatically by your linked account or with your security deposit. The secured account has a $1 minimum deposit, and your deposit sets the borrowing limit. Also, having the Cleo account and app can unlock the free Cleo Wallet, the Cleo AI chatbot that roasts or praises your money management skills, a savings account with up to 3.33% APY and cash advances for qualified users. The biggest downside is $14.99/mo cost for Credit Builder, making it one of the most expensive options on this list. On app stores, it has a 4.7-star rating on Apple and a 4.2-star rating on Google Play. Pros & cons Pros AI chatbot for budgeting No hard credit check or APR Reports to all three credit bureaus Low $1 deposit requirement Cons $14.99 membership fee required for secured card
Best for building credit with courses
9.2 Excellent Kovo Credit Builder	9.2 Excellent	$10. per month	$0		Equifax, Experian, TransUnion, Innovis	Go to site View details Compare product selection Compare	loading	Why we like it Kovo offers a simple way to build credit while learning new skills. Its credit-building plan is $10 per month for 24 months, and payments are reported to the major credit bureaus to help build credit history. There isn’t a membership fee, interest charges or hard credit checks. Using Kovo’s credit-building plan also means you get lifetime access to a variety of courses on topics like programming, stress management and business planning. It’s also one of the only credit-building apps that reports payments to Experian, Equifax, TransUnion and Innovois; most apps don’t bother reporting to Innovois as it’s a lesser-known bureau. But unlike credit-building loans, you don’t get your payments back at the end, and rewards gift cards require signing up with Kovo’s partners. Pros & cons Pros Plan offers lifetime access to digital courses No credit check or APR Offers gift card rewards Reports to four credit bureaus Cons Not a credit-building loan Fewer offerings than top competitors
Best for building credit with subscriptions
9 Excellent Grow Credit	9 Excellent	From $0 per month	$0	You need a bank account in good standing (60 to 90 days history), an email, phone number, a valid SSN, US permanent residency, and be at least 18 years old.	Equifax, Experian, TransUnion	View details Compare product selection Compare	loading	Why we like it Grow Credit helps build your credit using your existing monthly subscriptions. You'll need an existing bank account and a Grow Debit Mastercard that you'll set up to pay for your subscription services, such as Netflix, Disney+ or Hulu. Grow then reports these payments to all three major credit bureaus, with the balance automatically deducted from your bank account, interest-free. Grow Credit works with over 100 subscription services, and you don't have to pay any monthly fees for a year with its basic membership Build, which reports up to $17 in monthly subscription services. If you want to add more subscriptions, you can upgrade to Grow for $6.99 per month to get $50 in subscriptions reported or Accelerate for $12.99 per month to get $150 in subscriptions reported. But after the first year, the Build plan costs $3.99 per month. As far as the app goes, Grow Credit is highly rated, with 4.8 stars on Apple's App Store and 4.1 stars on Google Play. Pros & cons Pros Works with over 100 subscription services No interest charges or hard credit check Build plan free for 12 months Reports to all three major credit bureaus Cons Build plan may only report up to one or two subscriptions Unavoidable monthly fee after one year
Best for security features
9 Excellent Cred.ai	9 Excellent	$0 per year	$0		Equifax, Experian, TransUnion	View details Compare product selection Compare	loading	Why we like it Cred.ai is a fintech company that provides mobile-only banking and credit-building through its secured Unicorn Card. The card is linked to an external checking account or the Cred.ai free deposit account, and the money in your linked account sets the spending limit. The Unicorn card has no APR, no monthly fees and doesn't require a hard credit check. It also has a Cred.ai Guaranty that stipulates you'll never pay interest charges if autopay is enabled. The Unicorn Card really shines with its flashy security features, like Friend & Foe List, where you create a list of approved and unapproved merchants, and the Stealth Card, which is a temporary virtual card that you can use at unfamiliar places or for free trials. The Unicorn Card is also made of metal, which is always a nice touch. However, there's a soft credit pull to determine eligibility, and it's unclear if Cred.ai can accept checks or cash deposits. Also, while it earns 4.8 stars on the App Store, it earns a so-so 3.1 stars on Google Play due to reported bugs. Pros & cons Pros Five unique security features No monthly fees, APR or hard credit pull Reports to all three credit bureaus Free metal card Cons Soft credit pull Unclear on acceptance of checks or cash deposits
Best credit-building loan
Not scored yet OnePay Credit Builder	Not scored yet	$0. per month	$0	Bank through One and set up $500+ in monthly eligible direct deposits to sign up	Equifax, Experian, TransUnion	View details Compare product selection Compare	loading	Why we like it The OnePay Credit Builder account is a 0% APR credit builder loan. You take out a $300 loan that’s placed in a Credit Builder lockbox for one year, requiring a $25 monthly payment. But you just pay just $1 per month, and the other $24 is paid out of the Credit Builder lockbox. Each installment payment is reported to the credit bureau to build credit history, and you’ll get the $12 you paid out of pocket returned to you when the loan is over. Compared to other credit-building loans, OnePay’s is easily one of the most affordable. There’s also a soft credit check, but no hard inquiry. But on the downside, you must be a OnePay Cash+ account holder to apply, meaning you have set up $500 in direct deposit per month or hold a balance of at least $5,000. On the upside, the OnePay Cash account has no monthly fees or opening deposit requirements. Pros & cons Pros 0% APR Low $1 monthly payment No hard credit check Get the $12 you paid returned to you Cons Requires OnePay Cash+ account Only one term option

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Methodology: How we choose the best credit-builder apps

Finder’s banking experts analyze over 25 credit-building apps and products to find the best. We compare monthly fees, reporting activity, availability and more. Our methodology stipulates that the best credit-building apps must meet this criteria:

• Monthly fee under $15 per month
• No hard credit check or very low credit score requirements
• Annual fee under $50 for secured cards
• Reports to all three major credit bureaus
• Available on both App Store and Google Play

Honorable mentions

These credit-building apps and services fell just short compared to apps like Self, Cleo and Fizz. These apps either didn’t make the cut because they don’t report to all three major credit bureaus, the monthly fees were above our cutoff or their offerings are less flexible than the best.

• Extra. A secured, credit-building card similar to Step, the Extra card is linked to an external bank account instead of requiring a cash deposit. There are no interest charges, but there’s a monthly fee starting at $20 per month. For a little extra per month, you can also earn rewards points.
• Experian Boost®. From the credit bureau Experian itself, Experian Boost® is a free bill-reporting service. It can add monthly bills to your Experian credit report easily and with no fees. However, this service doesn’t add payments to your TransUnion or Equifax reports.
• Boom Pay. The next-best option for rent reporting, Boom Pay, only charges a small $10 enrollment fee and just $5 per year to add rent payments to all three of your credit reports. It’s second-only to Self because of its fee and doesn’t offer utility reporting.

How to choose a credit-building app

Credit-building apps are becoming more popular as people look for alternative ways to build their credit history. While all of the apps may promise credit-building opportunities at some level, here’s how to compare them so you know you’re choosing the right one for you:

• Reporting action. The top credit-building apps will report to all three credit bureaus. This matters a lot, because if a lender were to check your credit score, they may use your TransUnion, Experian or Equifax report to generate your credit score. You’ll want the credit-building app to send positive payment history everywhere for the most benefit.
• Monthly fees. It can be counterproductive to pay a high monthly fee when building your credit history. If you can’t afford the app’s fee every month, you can risk missing a payment, which could harm your credit score.
• Read app store reviews. Reviews on Apple’s App Store and Google Play are the best places to check out an app’s functionality, features and first-hand customer feedback.
• Fees and APR. Many credit-building cards, such as Step and Fizz, don’t charge APR because your balance is being repaid each billing cycle. Not having to deal with interest can help you avoid high-interest debt and, of course, save you money in the long run. Just watch out for monthly membership fees – those can add up.
• Credit checks. If a credit-building card or app requires good credit, then you may struggle to qualify for the product. The best credit-building apps don’t have hard credit checks that harm your credit score or have lenient credit score requirements so you can get your foot in the door.

Do credit-building apps work?

Credit-building apps are worth it if you can responsibly manage them. These apps can offer credit-building loans and secured cards with no interest charges and add bills to your credit reports that otherwise wouldn’t be there, like rent payments or your Netflix subscription.

The biggest benefit you can gain from credit-building apps is the payment history. Payment history makes up 35% of your FICO credit score, so making on-time payments every time can greatly improve your credit history. Keeping credit card balances under 30% of their borrowing limit and having different types of credit can also help improve your credit score.

Just keep in mind that credit-scoring models are complicated, and everyone’s credit history is different. If a credit-building app promises a certain point increase, consider that a red flag because it’s never guaranteed.

Bottom line

Credit-building apps can offer alternative methods for building a positive credit history. Since many of these apps don’t have hard credit checks, you can start building credit without needing good credit to be approved.

If you’re unsure about your ability to manage a credit-building app, consider alternative ways to build your credit history.

Frequently asked questions

• Are there any other credit-building apps like Self?

  Self offers rent reporting, utility reporting, credit-building loans and secured credit cards. Some apps like Self with similar products include Kikoff, Chime Card™ and MoneyLion.

• Are credit score apps accurate?

  Whether a credit score app is accurate depends on what credit scoring model the app is using to show your credit score. There are two main credit-scoring models: VantageScore and FICO Score. Lenders typically reference your FICO credit score when you apply for new credit, as it's the oldest and most established model. If you want to know what credit score lenders will see, we recommend checking your FICO credit score.

• What app gives you a real credit score?

  Plenty of apps offer real credit scores, and some offer "educational" scores, which are more like educated guesses. A popular app is myFICO, which can show your real FICO credit score generated from any of the three major bureaus.

• How can I build credit fast?

  Building your credit history from scratch is typically faster than improving a poor credit history, but there are plenty of ways to build credit fast. Removing negative marks from your credit reports can quickly improve your score. And if you have no credit history, adding active credit accounts can mean a quick boost if you maintain a positive payment history.

To make sure you get accurate and helpful information, this guide has been edited by Alexa Serrano Cruz as part of our fact-checking process.

Written by

Bethany Hickey

Banking editor

Bethany Hickey is the banking editor and personal finance expert at Finder, specializing in banking, lending, insurance, and crypto. Bethany’s expertise in personal finance has garnered recognition from esteemed media outlets, such as Nasdaq, MSN, Yahoo Finance, GOBankingRates, SuperMoney, AOL and Newsweek. Her articles offer practical financial strategies to Americans, empowering them to make decisions that meet their financial goals. Her past work includes articles on generational spending and saving habits, lending, budgeting and managing debt. Before joining Finder, she was a content manager where she wrote hundreds of articles and news pieces on auto financing and credit repair for CarsDirect, Auto Credit Express and The Car Connection, among others. Bethany holds a BA in English from the University of Michigan-Flint, and was poetry editor for the university’s Qua Literary and Fine Arts Magazine. See full bio

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