{"id":278147,"date":"2020-01-24T11:32:10","date_gmt":"2020-01-24T11:32:10","guid":{"rendered":"https:\/\/www.finder.com\/uk\/?p=278147"},"modified":"2025-04-15T09:46:48","modified_gmt":"2025-04-15T08:46:48","slug":"bits","status":"publish","type":"post","link":"https:\/\/www.finder.com\/uk\/credit-cards\/credit-builder-credit-cards\/bits","title":{"rendered":"Our straight-up review of the Bits credit builder"},"content":{"rendered":"

Bits is a credit building subscription service with a store credit card. Until recently, you couldn\u2019t make purchases using your Bits credit card. Now you can\u2026 but only in the Bits store. What you can<\/em> do is build your credit score *ahem* bit-by-bit, in return for a monthly fee that you won\u2019t get back.<\/p>

What is Bits?<\/h3>

Put simply, Bits is one of a handful of new services (including LOQBOX<\/a> and Pave<\/a>) that effectively let you buy your way to better credit.<\/p>

In its own words, Bits describes its credit building service as a \u201cdigital store credit card\u201d designed to help you build or improve your credit rating without the risk of accruing credit card debt. Unlike regular credit-builder credit cards<\/a>, the Bits card is digital-only and can\u2019t be used to make purchases (outside of Bits\u2019 own web store \u2013 with it\u2019s small selection of partner brands) or to get cash advances<\/strong>.<\/p>

It\u2019s 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\u2019ll boost your chances of getting approved in the future.<\/p>

Not sure if you need to boost your credit score? Check yours<\/a> for free.<\/p><\/div><\/div><\/div>

How does Bits work?<\/h3>

Each month, Bits charges a subscription fee to your account, and then automatically uses your subscription payment to pay off that fee. While this sounds counter-productive, the key is that this fixed amount is treated like a regular monthly credit payment, which Bits then reports to Experian<\/a>, Equifax<\/a> and Transunion<\/a>.<\/p>

By paying off this \u201cdebt\u201d in full each month, you\u2019ll be demonstrating your creditworthiness to potential lenders, which is then recorded on your credit history.<\/p>

After a few months, you should start to see your credit score improve, provided you aren\u2019t applying for other credit and are paying off any other bills you have.<\/p>

You can track your card status and payment schedule using the Bits app, and then track changes in your Experian credit score for free.<\/p>

Bits is a digital card, so you won\u2019t receive a physical card and you\u2019ll instead manage your account via the Bits app. You also won\u2019t be able to use Bits to borrow money, get a cash advance or pay for purchases. It\u2019s only intended to be a tool for those looking for a straightforward way to improve their credit score.<\/p><\/div><\/div><\/div>