A good credit score (670 or higher on the FICO scale) makes life easier. It helps you qualify for the credit cards and other loans you want and at better interest rates. Even if you don’t plan to borrow money, good credit can come in handy when renting an apartment or getting a new job.

If you’re among the third of Americans with poor or fair credit — or the 17% percent with no credit score at all — there are many ways to work toward a good score. One of those is to use a credit-building app.

How credit-building apps work

Credit-building apps work in various ways to help you improve your credit score. You’ll generally find four types to choose from:

  • Bill payment apps: Apps like StellarFi pay your bills on your behalf, and you reimburse them with your connected bank account. The payments are then reported to the credit bureaus to help you build credit.
  • Credit-building lenders: Apps like MoneyLion and Self offer small loans designed to help build your credit. The idea behind credit builder loans is to regularly make small payments to improve your payment history.
  • Credit monitoring services: Credit monitoring apps like myFICO let you see your credit score and alert you to changes. Some apps offer suggestions for improving your credit.
  • Credit reporting services: Services like Experian Boost help you build credit by reporting payments not typically considered on credit reports, like rent and utility bills.

Top credit building apps for iPhone and Android

Most of the top credit apps are available for iPhone and Android devices. Many also have websites that offer the same services.

Experian Boost

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    Pros

    • Affects your credit score instantly
    • Boosts scores by an average of 13 points
    • Free to use
    Red circle with an X inside

    Cons

    • Gives Experian access to your personal spending data
    • Not guaranteed to improve your score
    • Only affects your Experian score (not Equifax or Transunion)

Grow Credit

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    Pros

    • Available to people with limited credit or no credit history
    • Grow Credit claims it can increase users’ scores by up to 44 points
    • Supports over 100 subscriptions, including Netflix, Spotify and Disney Plus
    Red circle with an X inside

    Cons

    • Highest available spending limit is $150 per month
    • Must link your bank account via Plaid when you sign up
    • Some subscriptions only available with higher-tier plans

Kikoff

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    Pros

    • Instant approval
    • No credit check required
    • No interest fees or late fees
    Red circle with an X inside

    Cons

    • Funds can only be used in the Kikoff store
    • May result in bank fees when your account is debited
    • Missed payments may be reported to credit bureaus

MoneyLion Credit Builder

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    Pros

    • Make payments through the MoneyLion app
    • No hard credit check required
    • Can pay off the loan early without penalties
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    Cons

    • Gives MoneyLion access to your spending data
    • Loan interest rate can be as high as 29.99% APR
    • Requires a Credit Builder Plus Membership ($19.99/month)

myFICO

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    Pros

    • Cancel at any time
    • Monitor changes in your credit score
    • Paid plans include identity theft insurance
    Red circle with an X inside

    Cons

    • Free plan only covers one credit bureau (Equifax)
    • No free trial available for paid plans
    • Paid plans are relatively pricey

Self

  • Green circle with a checkmark inside

    Pros

    • Can make loan payments with cash
    • Eligible borrowers can get a Self Visa® credit card
    • No hard credit check
    Red circle with an X inside

    Cons

    • Convenience charges to pay with a debit card
    • Fees for late payments
    • Interest rates in the double digits

StellarFi

  • Green circle with a checkmark inside

    Pros

    • No hard credit check
    • Offers a 30-day trial of its Prime plan for $0.99
    • Option to pause and reactivate your membership
    Red circle with an X inside

    Cons

    • Only reports to Experian and Equifax
    • Reliance on a third party to pay your bills
    • Required to link your checking account to the app

Other ways to build credit

Credit builder apps can be a good way to build your credit, but they’re not the only option. Some other ways to build credit include:

  • Becoming an authorized user: You can piggyback off a friend or family member’s good credit by becoming an authorized user on their credit card. Their activity will show up on your credit report.
  • Catching up on your unpaid bills: When you miss payments, the debt may be sold to a collections agency. This gets reported to the credit bureaus and can hurt your score.
  • Considering a secured credit card: Secured credit cards are for people with bad credit or no credit and require a cash deposit to get started. They help you build credit over time, and the best secured credit cards even offer rewards with no annual fee.
  • Disputing errors on your credit report: Incorrectly reported balances, duplicated accounts and other errors can drag down your credit score. You can get free weekly credit reports at AnnualCreditReport.com to review your information.
  • Working to get or stay out of debt: Your credit utilization ratio is the percentage of your available revolving credit you’re currently using, and it’s one of the most important factors of your credit score. Aim to use less than 30% of your credit limit at any given time.

The bottom line

The top credit-building apps can help you build credit from scratch or repair your credit after past financial troubles. Many feature free or low-cost plans to make credit building accessible on almost any budget.

If you plan to use a credit-building app, think about your goals to choose the right type of app for your situation. Consider the costs of using the app and read the fine print to ensure you know what you’re signing up for.

Frequently asked questions

  • Credit builder apps offering short-term loans and alternative data reporting can improve your credit score. Their effect will vary depending on many factors, including the app you choose, your current score, and your credit history.
  • The apps on this list are all offered by legitimate companies. However, if you plan on using other apps, read the fine print carefully. Consider vetting services by reading customer reviews and checking the Consumer Financial Protection Bureau’s complaints database.
  • If you have no credit history, it can take at least six months of credit activity to get a FICO score. Building credit after a bankruptcy or other significant setback takes longer, but you might see improvements after a couple of years of responsible financial behavior.