Credit Building Apps - Any Good or a fad ?

jasonwatkins

I've seen a couple in the last few weeks.  There's "Bits" and also "Portify".

Both seem to operate under the same principle that they charge you a monthly fee for something like a "Virtual Credit Card" and then report it back to Credit References as you paying off your balance in full each month in order to increase your rating.

Has anyone had an experience with any of them ?.   I'm interested in trying one as the amount seems relatively small and affordable and if it works then it's certainly worth it.

[Deleted User]

They're generally very easy to spot for what they are, and lenders will not see them as equal to a proper credit agreement.

Get a real credit card, use it sensibly and save your money.

jasonwatkins

Deleted_User said:

They're generally very easy to spot for what they are, and lenders will not see them as equal to a proper credit agreement.

Get a real credit card, use it sensibly and save your money.

I can't just "get a real credit card".   It's not like going to pick up a loaf of bread.   The very reason I'm looking at these apps is because of my credit score.

[Deleted User]

Your credit score is immaterial to anything.  Credit is based on your credit history and current circumstances.

Credit cards are precisely like loaves of bread in that you need the right one for the right purpose. No point buying naan bread if you're making sandwiches.  Equally, you don't go to Amex when you're 19 with a CCJ.

What is in your history which is so bad? Who have you approached for a card so far?

DCFC79

Is your bank account in good standing ?

bradders1983

Whilst people think the 3 digit score is important, companies like this will make money. Shambolic.

jasonwatkins

DCFC79 said:

Is your bank account in good standing ?

Yes, my account is fine and has been for some time.   I've just switched accounts actually for my main account, but I have three in total - all in good standing.
The likely problem is the state of my credit file from way back when when I had some big problems.  While all of my outstanding debts are cleared, there are three that I paid partial settlements on that are in default, and they won't be out of default for between 4-5 years.

DCFC79

jasonwatkins said:

DCFC79 said:

Is your bank account in good standing ?

Yes, my account is fine and has been for some time.   I've just switched accounts actually for my main account, but I have three in total - all in good standing.
The likely problem is the state of my credit file from way back when when I had some big problems.  While all of my outstanding debts are cleared, there are three that I paid partial settlements on that are in default, and they won't be out of default for between 4-5 years.

I wouldn't use the credit building apps you list, time is the best healer.

ceremony

Don't worry about your credit score.

If you have defaults in the last 18 months, most credit card companies won't offer you a credit card because of that. I'm currently in the same boat, but worse off because I have a CCJ from two years ago.

There's an eligibility checker on here and some of the other popular price comparison websites have eligibility checkers for sub-prime cards too, that offer a bit more detail about what the eligibility criteria are. I'd suggest waiting until your most recent default is two years old, and trying eligibility checkers then. If you're still not eligible, wait a few more months and try again.

I reckon it won't be long before Vanquis/Capital One will offer you something, and if you manage that well you'll be able to get something more mainstream off the back of that.