Bits credit builder review

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.

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.

£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.

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.