Bits credit builder review

You can't make purchases using Bits "digital credit card", but you can build your credit score *ahem* bit-by-bit.


What is Bits?

Bits describes its credit builder service as a “digital credit card” designed to help you build or improve your credit rating without the risk of accruing credit card debt. Unlike regular credit-builder credit cards, the Bits card is digital-only and can’t be used to make purchases (outside of Bits’ own web store) or to get cash advances. You also won’t be given a credit limit or rewards.

It’s easier to think of it as less of a credit card and more of a credit-building tool. If no card issuers will approve you for a card today or if you can get approved for a card but only with a high interest rate, the idea is that by using Bits, you’ll boost your chances of getting approved in the future.

Bits app

How does it work?

Each month, Bits charges a subscription fee to your card, and then automatically uses your card to pay off the fee. While this sounds counter-productive, the key is that this fixed amount is treated like a regular monthly credit card payment, which Bits then report to Experian.

By paying off this “debt” in full each month, you’ll be demonstrating your creditworthiness to Experian, which is then recorded on your credit history.

Your credit score should then start to improve after a few months, provided you aren’t applying for other credit and are paying off any other bills you have.

You can track your card status and payment schedule using the Bits app, and then track the changes in your credit score via the Experian app.

Bits is a digital card, so you won’t receive a physical card and will instead manage your account via the Bits app. You also won’t be able to use Bits to borrow money, get a cash advance or pay for purchases. It’s only intended to be a tool for those looking for a straightforward way to improve their credit score.

How much does it cost?

£2, £4 or £8 subscription fee. You can choose a £2, £4 or £8 subscription fee each month, which is then used automatically as your monthly credit card payment. This is non-refundable and isn’t returned to you when you cancel your account.

No interest or other fees.The Bits card doesn’t work as a regular credit card, so you won’t be charged interest and won’t pay any ongoing or annual fees.

Is the Bits card right for me?

If you struggle to get approved for credit products (or if you can get approved but only get offered terrible rates), then signing up to Bits and letting it run for a while could boost your chances of approval and help you access lower rates.

If you’re looking to improve your credit score, but also want the benefits of a normal credit card, you’ll want to compare credit-builder cards.

However, Bits isn’t the only service around that effectively offers credit building without the credit, and there are also other steps you can take to help your credit score.

Bits app

Pros and cons of Bits

  • A straightforward way to build your credit score
  • Easy to apply
  • Easy to manage in the app
  • No risk of debt
  • Monthly fee
  • Can’t be used as, erm.. a credit card
  • Any missed payments will hurt your credit score

Bits app

The Bits app is the easiest way to manage your Bits card. As you don’t get the features of a regular credit card, the Bits app is relatively limited, but you can use it to track and manage your monthly payments, update your billing details and address, and cancel your card.

Is the Bits credit card safe?

Yes, the Bits credit card is 100% secured and locked. You can’t use the Bits card as a traditional credit card, which means there’s no risk of accruing credit card debt, including interest payments and other fees.

How to get the Bits digital credit card

Bits is still in early access and currently out of stock, but you can join the waitlist via the Bits website.

Unlike most credit cards, the Bits card has very simple eligibility criteria, and you won’t need to pass a credit check or meet a lender’s financial requirements to be approved.

To apply for a Bits credit card, you’ll just need to provide the following information:

  • Name and date of birth
  • Email address
  • Mobile number
  • Address

What are my other options?

Like Bits, LOQBOX offers an alternative to those looking to build their credit score. LOQBOX is a hybrid savings and credit account that lets you make a monthly deposit from £20 to £200, which is then treated as a credit repayment for the purposes of your credit rating.


Build your credit history while you save with LOQBOX

  • Save from £20 to £200 a month
  • Build and improve your credit history
  • Once you’ve finished unlock your savings

Credit builder credit cards

Credit builder credit cards are suitable for those with bad credit but still looking to get a credit card. By successfully managing your credit account, you’ll demonstrate your responsibility as a borrower and eventually be eligible for credit cards with better rates, terms and benefits.

Table: sorted by representative APR, promoted deals first
Name Product Annual/monthly fees Initial credit limits Minimum income Rep. APR Incentive Link
TSB Classic Credit Card Mastercard
Min. limit £500, max. limit not specified.
Not specified
Representative example: When you spend £1,200 at a purchase rate of 26.95% (variable) p.a., your representative rate is 26.9% APR (variable).
Tesco Bank Foundation Card
Min. limit £100, max. limit not specified.
Collect 1 Tesco Clubcard point per £4 spent (£4 minimum) in Tesco and 1 Clubcard point per £8 spent (£8 minimum) outside Tesco in each purchase transaction.  Must have available credit to collect Clubcard points. Clubcard points are turned into Clubcard vouchers every 3 months or sooner using Faster Vouchers. Clubcard vouchers can be used in Tesco or with Clubcard Reward Partners to get even more value on dining out, hotel stays and travel.
Representative example: When you spend £1,200 at a purchase rate of 27.542% (variable) p.a., your representative rate is 27.5% APR (variable).
Vanquis Bank Chrome Credit Card
Min. limit £250, max. limit £1,500.
Not specified
Representative example: When you spend £250 at a purchase rate of 29.5% (variable) p.a., your representative rate is 29.5% APR (variable).
Vanquis Bank Aquis Visa
Min. limit £250, max. limit £1,000.
Not specified
You could get a credit limit increase after your 5th statement and further increases every 5 months, up to £4,000.
Representative example: When you spend £1,000 at a purchase rate of 29.84% (variable) p.a., your representative rate is 29.8% APR (variable).
Amazon Classic Mastercard
Min. limit £500, max. limit not specified.
Not specified
Be upgraded to the Amazon Platinum Mastercard if you make at least one transaction a month, make repayments on time and stay within credit limit in the first 12 months..
Representative example: When you spend £1,200 at a purchase rate of 29.95% (variable) p.a., your representative rate is 29.9% APR (variable).

Compare up to 4 providers

Approval for any credit card will depend on your status. The APR shown represents the interest rate offered to most successful applicants. Depending on your personal circumstances the APR you're offered may be higher, or you may not be offered credit at all. Fees and rates are subject to change without notice. It's always wise to check the terms of any deal before you borrow.

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