How To Build Credit History With The Credit Builder Card

No dumb interest or credit checks involved here ✨

Illustration of card holding a script

You're probably reading this because your credit score isn’t where you want it to be.

You want to build your credit so you can get the best rates for financial products in the future like personal loans and mortgages, but you don’t know how to improve your score without taking out credit cards that usually come with ridiculous interest rates...

So, if you're wondering how to build credit without a credit card, Cleo’s created something that could help.

🥁 🥁 🥁 🥁 🥁 🥁

Let us introduce you to… ✨ The Credit Builder Card* ✨

Everyone deserves a chance at working on their credit, so that’s why Cleo’s created a card which is completely focused on helping you improve your score and to build credit history.

And unlike traditional cards, it actually has your back and you’ll never be charged any of that dumb interest.

💭 What Is the Credit Builder Card and How Does It Work?

With a credit card, you’re spending money that’s not yours, and then having to pay it back monthly which can get out of control if you’re not careful and don’t track your spending.

In fact, around 14 million (6%) of Americans have over 10k in credit card debt... those are some serious numbers right there. And if you’re missing payments or not paying back on time, your score’s going to be hit hard and you’ll be racking up more and more debt.

With Cleo’s Credit Builder Card, you’re in charge of deciding how much money you want to spend. The money you add to your card’s security deposit then becomes your credit limit (FYI there’s a minimum deposit of $1).

It’s pretty simple.

For example, you add $50 to your security deposit, you spend $50 and that’s it. It’s really hard to go over 💸

And with our auto repayment option, you don’t have to do a thing. It’s all set up so it’s pretty much impossible to miss a payment.

✨ Why Should I be Interested?

Building credit can be tricky, that’s why Cleo’s kept it super simple:

💙 The amount you add to your security deposit becomes your credit limit

💙 It can help build your credit and help you to improve your score

💙 No interest

💙 No credit checks

💅 More Info Please
  • You’ll be able to apply for the card once you sign up to the Cleo Builder subscription.
  • You’ll have the option to apply for a cash advance** up to $270 (eligibility requirements apply)
  • You'll have priority support to help you on your credit journey

⬆️ Cool, How Can It Help Build My Credit?

Cleo reports your payment history to the credit bureaus and over time, on-time payments may help your credit score.

If you select the ‘carefree credit building’ option, Cleo will automatically take your payment so you never have to worry about missing a payment.

What Does Cleo Report to the Credit Bureaus?
  • Outstanding balance owed: The balance not paid off from the prior month. If you paid off your last statement in full, your outstanding balance should be $0
  • Payment status: The status of your payment. Your payment status is a reflection of whether or not you paid last month’s statement

    💡(If you have the ‘carefree credit building’ option switched on, you shouldn’t have to worry about the above two points.)
  • Current balance: The amount you have spent during a statement cycle that is owed on the due date for that statement
  • The highest credit: The highest statement amount – also known as the most amount of credit you’ve ever spent

What Doesn't Cleo Report On?

Card utilization: the card doesn’t report percent utilization to the major credit bureaus because it has no pre-set credit limit. That means spending up to the amount of your security deposit will not show a high-utilization record on your credit history as long as your card is current. Cleo also doesn’t report credit limits ✌️

💳 How to Use the Thing

💵 Add some cash to your security deposit: the amount of money you put in your security deposit becomes your credit limit. So actually, transferring cash is important… or you won’t have any money to spend 🥴

You’re fine to spend everything you transfer, as utilization is not reported.

➡️ Add money to your security deposit when you’re paid

➡️ Check your balance in the Cleo app

🛍️ Go Shopping: You heard it right. It's advisable to use your credit builder card at least once a month. There's no need for extravagant spending, the primary goal here is to boost your credit score. To do that, you need to use the card and mfake timely payments to remind those annoying credit people that it exists.

➡️  Use your card at least once a month

➡️  Add bills or subscriptions so you drop the life admin and spend automatically

Black Friday Film GIF by Paramount Movies
Via Giphy

💡 Use your bills: pay your bills with your credit builder card and invest in your credit future while staying on top of things. It’s a win win situation as long as you’re making payments on time 🚀

➡️  Keep carefree credit building on

➡️  Set up bill reminders

➡️  Add your bills to your Cleo budget, she’ll keep you on the straight and narrow

🚦 Track your score: Ok so you’re not going to get the credit score you want overnight but keep on top of it by checking your score regularly. If there are any changes, you’ll be able to see what has happened, why it happened and what you can do to get back on track. Cleo will notify you when your latest credit report is available and any changes affecting your score.

➡️  Keep track of you credit score in the ‘borrow’ tab

➡️  Explore your score over time and see how its changed from month to month

Ps. Cleo’s credit scoring feature is provided through Equifax ✌️

🤔 Why Is Your Credit Score Important?

There are so many reasons why having a ‘good’ credit score of 670 and above is important as certain things in your life will revolve around your credit.

For example:

🏘️ Renting: Landlords may consider your credit score when deciding whether to approve your rental application because they’re assessing the likelihood that you’ll pay your rent on time every month

🏡 Mortgages: Without a decent credit score, you won’t qualify for the best mortgage rates available, which could mean you’ll end up paying more money over the term of your mortgage

💳 Credit cards: If your credit score isn’t good, you’re either won't qualify for a credit card OR, it’ll be way more expensive for you to borrow money

🚗 Car insurance: There are a few factors insurance companies take into consideration that can influence what you pay, including your credit history. 92% of insurers now consider credit when deciding on a quote for your insurance, and around half of Nationwide’s existing customers pay a lower premium based on their credit score

💰Personal loans: You’ll need at least a ‘good’ credit score to qualify for a personal loan

However, it's important to understand that even if you do have a decent credit score, it doesn’t necessarily mean that you’ll qualify for certain financial products as lenders will check your credit history in addition to other factors, such as income and debt.

So, there’s no time like the present to start improving 💅

What Do Our Users Think?

💙 “I highly recommend the credit builder. It really does help. It's straight forward about pricing and what it can do for you. Love everything about the Cleo app!” – Barbara S. Trustpilot review

💙 ”Love this app… my credit score has gone up 30 pts.” – Paul M. Google Play Store review

Testimonial Disclaimer: Review provided by customer to Cleo AI Ltd. d/b/a Cleo. The comment above is related to individual experiences or results. Individual results may vary.

It's Now Time to Start Living Your Best Credit Life ✨

Enjoy this post? Def give it a share or send it along to a friend. You never know, it could make a big difference.
Big love. Cleo 💙

*The Credit Builder Card is issued by WebBank, Member FDIC pursuant to a license from Visa USA Inc. Access to the Card is subject to approval

**Cash / Salary Advance” and “Cashback Rewards” are features of the Cleo Builder Subscription and not the Credit Builder Card.

Still have questions? Find answers below.
Written by

Read more

signing up takes
2 minutes

QR code to download cleo app
Talking to Cleo and seeing a breakdown of your money.