Credit Building App | Credit Builder Program | MoneyLion (2024)

FAQs

Do credit builder apps really work? ›

There's nothing wrong with giving a credit-building app a try, especially if you can do so for free. Even if you only increase your score by 20 to 30 points, that could be enough to help you qualify for a loan. A higher score could even have a positive impact on your auto insurance rates.

A credit builder loan is worth it if:

You're not in a rush to establish credit or build or raise your credit score. You do not have existing debt. You have reliable income and can make on-time monthly payments.

Most notably, credit-builder loans can improve your credit score. As you pay each month those on-time payments are reported to credit bureaus. Payment history accounts for 35 percent of your score, and as that improves your credit score will follow.

Try to make your payments on time and pay at least the minimum if you can. Paying credit card or loan payments on time, every time, is the most important thing you can do to help build your score. If you are able to pay more than the minimum, that is also helpful for your score.

You can be denied for a credit-builder loan if you have a negative banking history or you don't have enough income to make the monthly payments. You can also be denied for a credit-builder loan if you apply through a credit union and you don't qualify for a membership.

In our examination of 50,000 Credit Strong^® credit builder accounts, we found that the average account holder increased their FICO^® Score 8 by more than 25 points within three months of opening a Credit Strong credit builder account. After nine months the average credit score improvement increased to almost 40 points.

How long does it take to build credit from 0? It generally takes three to six months to get your first credit score, although the time it takes to build good credit is different for everyone. It depends on factors like what your credit scores are now, how you're managing debt and more.

What is the best credit builder? ›

One of the fastest ways to build credit is by becoming an authorized user on someone else's card, like a family member or close friend. You can piggyback off the primary cardholder's credit and establish your credit history.

Credit builder apps that offer short-term loans and alternative data reporting can certainly improve your credit score. How well a credit-building app will work for you depends on many factors including your current score, why you have a low score, the app you choose to work with and the program you choose.

Most credit scoring apps don't create or determine the score they show you, so they might not be more or less "accurate" than others. Apps that show you a FICO^® Score or VantageScore based on one of your credit reports may purchase or be given your report and score and then share them with you.

Building credit takes time, so it's normal to not see any movement at first. Once we start reporting your on-time payments to the credit bureaus, you may see a positive impact in as little as two weeks from your first payment due date, however, it can take up to 3-6 months.