Credit builder: How can a smartphone app help improve your credit?
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While smartphones have the ability to improve our lives in many ways, the opportunity to build a better credit score is undoubtedly one of the best. With the right choice of credit builder app at your disposal, it is now possible to get started on regaining control of your financial future within a matter of minutes.
Your credit score will influence your possibilities when buying a home, taking out a loan, or applying for a credit card. Even if you do not intend to make an application for some time, the best credit improvement app for your smartphone will strengthen your position for when this time arrives. Here’s how they can be used to boost your prospects.
Using a credit improvement app to view your credit report
Before you can build a better credit score, it’s important to ask “What is my credit score?” and use this info as your starting point. Every adult has a financial history and will subsequently be awarded a score by the credit referencing agencies that lenders turn to when deciding whether they can lend money to an applicant.
In the UK, the three main agencies are Equifax, Experian, and TransUnion. While each has its own scoring system, they all work in a fairly similar way to inform lenders on how much of a risk you are in relation to repayments.
Even if a credit score improvement app only provides your score for one of the three referencing agencies, it will give you an idea of how things stand across the board. Meanwhile, the ability to see and contest inaccurate data can be one of the fastest ways to achieve a quick boost to your score.
Utilising a credit improvement app to actively boost your score
A credit builder app doesn’t only give you a clear understanding of your score. The best credit builder app downloads for smartphones also provide a detailed list of the positive and negative factors currently affecting your score. A high-quality service will also propose actionable steps to improve your score, such as reducing your credit utilisation.
Moreover, a top credit improvement app like Credito can actively help you build a better score. The app allows you to set up a 0% APR credit builder account, which once monthly payments are made (via your app subscription fee) results in a recorded payment.
This info is then sent to credit reference agencies, which boosts your score. It is particularly useful for anyone with a low score or limited credit history. The credit card builder app can subsequently help you unlock the best deals on future credit agreements. A personal credit coach will also make further suggestions to maximise your credit score.
Using a credit score improvement app to maintain success
While some improvements can be seen quickly, repairing a damaged credit score is normally a lengthy process. Sadly, bad habits will see the boosted score fall far quicker than you rebuilt it. Thankfully, a credit builder loan app can also help you avoid falling into negative habits that could cause damage.
Credit alerts can be used to protect your score by avoiding problems like missed payments. By prioritising smart habits, your credit score will remain in a better place. Given that a single missed payment can affect your score for six years, getting this right is vital.
If nothing else, having a credit score app on your smartphone encourages you to stay consistent. After all, we all spend hours on our devices daily. Each time you see the chosen credit builder app logo, it will give you the extra motivation to refrain from bad habits and remain on a brighter path.