Ultimate Guide to Improve Credit Scores in 2024

Create Your Credit Journey

Credit score stuck? You can raise it! Unlike a decade ago, new credit building products are available specifically to improve credit scores for consumers no matter where you're starting.

Good credit scores can bring a financial peace of mind and one less thing to worry about in a volatile economy.

You want to aim for at least a 720 FICO. This score will undoubtedly land you the best rates and terms from lenders.

Building good credit takes time, so give it at least 6 months and don't get discouraged, as consistent positive behavior will ultimately improve your scores.

9 ways to improve credit scores using credit building products

There are several strategies to improve credit scores, including disputing negative accountsusing less of your credit line and making payments consistently on-time (one late payment can tank scores).

We are concentrating primarily on using credit building products as an alternative strategy to improve credit scores.

 

1. StellarFi average score increase is 80 points1

StellarFi offers a credit-building virtual card that you can use to pay your bills such as rent, utilities or subscription services. Once your bills for the month are paid with the StellarFi Bill Pay Card, they will in-turn report those payments to the credit bureaus, Experian and Equifax, as on-time payments. Credit score increase 100% guaranteed within just 3 months, or your money back.

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1. Sign Up: You create a StellarFi account and select a membership tier.

2. Link Bank Account: Securely connect a bank account to be used for bill payments and Stellarfi transactions.

3. Link Bank Account: Securely connect a bank account to be used for bill payments and Stellarfi transactions.

4. StellarFi Pays Your Bills: You'll get a StellarFi Bill Pay Card, which they use to pay your bills on time.

5. StellarFi Pays Your Bills: You'll get a StellarFi Bill Pay Card, which they use to pay your bills on time.

6. Credit Bureau Reporting: StellarFi reports your timely bill payments to Experian and Equifax, building your positive credit history.

2. Self Credit Builder average score increase is 49 points2

It's a secured loan + savings account: Instead of getting a lump sum loan upfront, Self puts the loan amount in a Certificate of Deposit (CD) that you can't access until the loan is paid off. You make monthly payments to build credit history and essentially save money at the same time.

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1. Apply online through Self's website. They'll do a soft credit check, which doesn't impact your score.

2. Choose a Plan: Select a loan amount and term (often 12 or 24 months).

3. Administrative Fee: You pay a one-time administrative fee.

4. The Loan Process: Self's partner bank provides the loan, held in the CD in your name.

5. Make Regular Payments: You make fixed monthly payments towards the loan. Self reports these payments to the three major credit bureaus (Experian, Equifax, and TransUnion), helping you build positive payment history.

6. Loan Maturity and Savings: Once you complete the loan term, the CD unlocks, and you receive your savings minus interest and fees.

3. OneUnited Bank CashPlease Loan

CashPlease is a short-term loan designed to cover unexpected expenses with loan amounts typically ranging from $200 to $1,000. Approval is based on your checking account activity with OneUnited Bank, not your credit score. Payments are automatically deducted from your OneUnited Bank checking account in three installments over three months.

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1. OneUnited Bank checking account holder: You must have an active and established checking account with OneUnited Bank..

2. No credit check: Approval is based on account activity with OneUnited Bank, not your credit score.

3. No credit check: Approval is based on account activity with OneUnited Bank, not your credit score.

4. No credit check: Approval is based on account activity with OneUnited Bank, not your credit score.

5. Credit reporting: Although no credit check is used for approval, OneUnited Bank does report your payment history to credit bureaus. On-time payments can help build credit over time.

4. Current Build Card

It's like a hybrid between a secured credit card and a prepaid debit card. You deposit money into your Current account, and that becomes your spending limit. Since you're using your own funds, there's no credit check to to open the card.

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1. Checking Account. Open a Current banking account to get the Build Card.

2. Fund Your Account: Add money to your Current account. This becomes your available spending balance for the Build Card.

3. Use Your Build Card: You can use the Build Card like a regular debit or credit card for purchases.

4. Reserved Funds System: When you make a purchase, Current automatically puts aside the equivalent amount in a “Reserved Funds” section of your account. This ensures you always have money to cover your spending.

5. Credit Reporting: Current reports your responsible payments to the credit bureaus, helping you build a positive credit history.

5. Grow Credit Account average score increase is 42 points3

Grow Credit provides a secured virtual Mastercard that you use to pay for eligible subscriptions, allowing you to build your credit history without the risk of credit card debt. Approval is primarily based on your bank account history plus there's no risk of debt because you can't overspend or rack up interest, since you're only paying for existing expenses.

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1. Sign Up: Choose one of their membership plans. There's a free plan and paid plans that offer higher credit limits.

2. Link a Bank Account: You securely link a checking account for automatic payments.

3. Choose Subscriptions: Select eligible monthly subscriptions (like Netflix, Spotify, phone bills, etc.) that you already pay for. Grow Credit will initially start with one subscription.

4. Grow Pays Your Subscription: Grow Credit uses your virtual Mastercard to pay your selected subscription directly.

5. You Repay Grow: Subscription cost is automatically withdrawn from your linked bank account, ensuring on-time payment. There is no interest or late fees.

6. Credit Building: Grow reports your responsible payment history to all three credit bureaus (Experian, Equifax, and TransUnion).

6. OpenSky Plus® Secured Visa® average score increase is 55 points4

This secured card is available to most people because there is no credit check required. Approval is based on other factors, making it accessible for building or rebuilding credit. Since the card is secured, you provide a refundable security deposit that becomes your credit limit from $300 up to $3,000. There are no rewards with this card but there's also $0 annual fee.

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1. Application: You apply on the OpenSky website. There's no hard credit inquiry, so your score won't be impacted by applying.

2. Security Deposit: If approved, you choose your deposit amount. This determines your credit limit.

3. Using the Card: Make purchases just like any credit card, staying below your credit limit. Focus on keeping your credit utilization low (ideally below 10% of your limit).

4. Potential Upgrades: With responsible use, you might become eligible to upgrade to an unsecured card from OpenSky, but there's no guarantee.

5. Getting Your Deposit Back: If you close the card in good standing (no balance) or successfully upgrade to an unsecured card, you get your security deposit back.

6. Credit Building: Reports payment history to all three credit bureaus (Experian, Equifax, and TransUnion).

7. Kohl's Store Card

Want to improve your credit score while saving money? If you have fair credit or better and enjoy shopping at Kohl's, their store credit card can be a great tool. Used responsibly, a store credit card can boost your credit score while getting you valuable discounts. Here's how a Kohl's card can help you improve your credit and why it's worth considering.

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1. Application: You apply on the Kohl's website. A hard credit inquiry is pulled.

2. Store-Only Use: The Kohl's credit card is a closed-loop card, meaning you can only use it at Kohl's stores or on their website (Kohls.com).

3. Charge Card Function: It functions more like a charge card where it's generally expected that you'll pay your balance in full each month. However, you can carry a balance if you're willing to pay high interest.

4. Rewards Program: The card is integrated with the Kohl's Cash rewards program.

5. Credit Building: Reports payment history to all three credit bureaus (Experian, Equifax, and TransUnion).

8. RentReporter average score increase is 40 points

RentReporters can be helpful if you have a thin credit file or are working to rebuild credit. They state users can improve credit scores by as much as 40 points in as little as 10 days once your rent payments are reported to the credit bureaus. RentReporters has a one-time enrollment fee and monthly or yearly fees for continued reporting but not all landlords participate with RentReporters.

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1. Sign Up: You create an account on RentReporters.com providing basic information including your landlord's name.

2. Rent Verification: RentReporters contacts your landlord or property management company to confirm your rental payment history or they may link to your bank account for automatic payment verification.

3. Past Payment Reporting (Optional): RentReporters can report up to two years of your past rent payment history for an additional fee. This can boost your credit score more quickly.

4. Past Payment Reporting (Optional): RentReporters can report up to two years of your past rent payment history for an additional fee. This can boost your credit score more quickly.

5. Monthly Updates: RentReporters continues to verify and report your rent payments to the credit bureaus each month.

9. Kikoff

Kikoff is a financial technology company that provides credit-building tools specifically designed for those with limited or poor credit history. Approval for Kikoff accounts isn't based on your current credit score. The line of credit can only be used to buy items from Kikoff's online store but that's okay because there's no accrued interest on account balances.

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1. Sign Up: Kikoff doesn't require a credit check or minimum income for approval. This makes it an accessible option for those building credit from scratch.

2. Option One: You can get a line of credit to purchase an item from their store and make small monthly payments to Kikoff over 12 months. Kikoff reports these on-time payments to Experian and Equifax.

3. Option Two: With the Credit Builder Loan you make 12 monthly payments into a savings-like account. Kikoff reports your on-time payments to build credit history and at the end of the loan term, you receive the funds you deposited, minus minimal fees.

4. Fees: The Credit Account has no additional fees or interest.

More Credit Boost Resources

Disclaimers

1 StellarFi – *Potential increase based on StellarFi member data. StellarFi numbers observed an average of 80 points VantageScore® 3.0 increase during a member’s lifetime. Score increase based on members with an incoming score range of 300-499 pts, who made regular on-time payments, with regular on-time payments. Results may vary.

2 Self – Average outcome for customers who opened a 12 month Credit Builder account in Q1 2021, starting VantageScore 3.0 under 600, who made on-time payments. Other factors, including activity with your other creditors, may impact results.

3 Grow Credit – Data based on 86,567 unique customers with at least one credit score as of October 2023. For customers with multiple credit scores the analysis takes the first score compared to the customer’s highest score observed by Grow Credit. For those with 1 credit score we calculate the score improvement as 0. On average, the typical user achieved their maximum credit score in 8 months. Changes in credit score vary by individual customer behavior and credit history.

4 OpenSky® Secured Visa® – 82% of rebuilders increase their score by 55+ points after just six on-time minimum payments.

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