How to Use AI to Improve Your Credit Score and Tackle Debt

Ways AI can help you enhance your credit score and manage your debts 🤖

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The path to financial wellness typically goes through improving credit scores and tackling debts. Usually, the solutions for both involve more income, less spending, and making on-time payments. But as usual, that’s easier said than done.

Enter AI.

No, advanced algorithms can’t and won’t hand you cash or *poof* get rid of your credit woes. But AIs can help you take charge of your financial habits to make positive, lasting changes.  

From 24/7 account monitoring to offering (not-so) gentle encouragement, here are ways AI can help you enhance your credit score and manage your debts.

Personalized financial recommendations

AI excels at data crunching to offer a deeper understanding and helpful observations. Naturally, it’s the perfect tool to analyze your financial history and generate personalized insights.

Depending on your situation and the AI platform you use, these insights could include:

  • Debt payoff strategies
  • Ways to increase your income
  • Savings strategies
  • The best credit products to improve your score

Used wisely, these insights may lead to smarter financial habits, lower debt balances, and higher credit scores. After all, building good credit is mostly a function of lowering debt and making on-time payments.

Tailored budgeting assistance

Not all budgeting tools are made equally, but AI tools give you an advantage in developing and sticking to a plan.

AI-powered budgeting apps go beyond “one-size-fits-all” financial advice. They use those personalized insights we mentioned above to help you credit a budget that fits your life.

Using advanced algorithms and data from your financial past and future, apps like Cleo:

  • Gather and analyze your income and expense data
  • Categorize and visualize your cash flow
  • Suggest changes to your spending and saving routines
  • Provide automated savings tools
  • Help you rearrange, track, and control your spending – AKA, budgeting!

By consistently spending less than you make, you’ll be able to pay off your debts and build credit over time. And since AI continually learns as your finances evolve, apps can keep you on track effortlessly.

Bill payment reminders

Another handy fact about AI: it’s insanely punctual. With a little information about your cash flow (namely, when your paycheck comes in and bills go out), Cleo can schedule upcoming bill payment reminders.

Since your payment history comprises a full third of your credit score, you can’t afford to miss these deadlines! (Not to mention, making payments is the only surefire way to knock down your debt load.)

And we don’t stop at debts. We also watch over your bank balances and alert you when you’re close to a pesky overdraft fee. (No, they don’t hurt your credit. But they are annoying.)

AI-powered credit product recommendations

Nowadays, many financial products use AI to help you monitor your credit and make smarter choices.

For example, apps like Credit Karma deploy AI to help you find the best interest rates and credit card deals based on your financial history.

Of course, you’ll want to make sure that any new debts will actually help your goals. (Especially if you’re already struggling to manage the debt you have!)  

Credit score simulations

AI-powered credit score simulators like CreditHQ (currently under-development) are a relatively novel technology. They use AI, plus a few user inputs, to project how certain actions could impact your finances and credit scores.

For instance, an app may help visualize the credit score impacts of:

  • Taking out a loan vs. a credit card
  • Short-term vs. long-term debts
  • Getting married
  • Starting a family
  • Buying a house
  • Increasing or decreasing your income

While such apps are, by definition, theoretical, the ability to forecast your options can help you make more intentional, well-informed choices.

Progress tracking

After you’ve tweaked your financial habits (or if you were already on track), it’s important to keep an eye on your progress. Fortunately, AI’s ability to continuously learn and improve comes in handy here, too.

Apps like Cleo don’t just “one and done” your finances; we keep an eye on your accounts in read-only mode.

With a birds’-eye view of your financial habits and income, we can alert you to potential dangers like lifestyle inflation or forgotten debts. And when you stray from your goals, we’re right there to get you back on track.

Gentle (or not-so-gentle) nudging

Everyone needs a little encouragement sometimes. AI-powered financial apps can keep your credit and debt goals on track with positive – or hell, negative – reinforcement.

Naturally, as Cleo both roasts and encourages users, we consider ourselves experts in this space.

Need to be told what a d*ck you were to your bank account last week? Don’t worry, Cleo noticed your 5 trips to Taco Bell, too.

Have a bad day and need some encouragement to ward off the need for retail therapy? Just ask Cleo to hype you up – she also saw your credit card balance drop by 5%!

Negotiating debts and errors

AI doesn’t just monitor and guide you – it can also help you negotiate debts and even your credit score.

Cleo’s Haggle It tool is one example of AI-powered negotiation. With a little information, she can generate letters to tackle all kinds of financial problems. A letter and some luck may see you lower your interest rates, wash away old debts, or even remove negative items from your credit report.

Sure, it’s not always a guarantee. But anything that raises your scores or lowers your debts bodes well for your finances!

Fraud detection

Okay, so this is less something you do and more something that happens to you.

Nowadays, many financial institutions use some kind of AI to monitor accounts for fraudulent activities. These range from unauthorized purchases that could lower your credit score to indicators of full-blown identity theft.

You can’t exactly do anything with that (other than use apps with kickass AI tech) – it’s just nice to know you’re extra-protected.

Build credit and pay off debts with Cleo

Badass apps like Cleo are at the forefront of discovering how well-applied AI can help you boost your credit score, manage your debts, and take charge of your finances. With intuitive analytical, saving, recommendation, and security features, you’d be a fool not to get roasted on the daily…


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

Still have questions? Find answers below.
How can AI help improve my financial habits?
What makes AI-powered budgeting apps different from traditional budgeting tools?
Can AI really help me negotiate my debts and fix credit report errors?
Are there AI tools to predict how my actions might impact my credit score?
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