How to Build or Maintain Credit in 2023 and Beyond

Tech has come a long way and is almost inextricably intertwined with our day-to-day life. Thus, it is natural that even in the field of personal finance, especially in the field of credit building, tech has a major role to play in 2023 and beyond. Increasing a low credit score can seem like a complex undertaking requiring much effort. Fortunately, several tech tools and apps out today can simplify the process. There is something for everyone, from secured credit cards to credit monitoring apps.

1. Access your credit report online

A problem is easier to solve the more you are aware of it. Deciding how to raise your score will be easier if you know where your credit really stands. It's simpler than ever to do this in the digital age. You can view your credit score for free online on a number of well-known websites. Opting for a free Experian credit report is also a smart idea.

Credit Score

Your credit score will be between 300 and 850 points, with 850 being the highest possible number. Your debt and payment history are taken into account. It also considers what kind of debt you have, such as school loans or mortgages. This figure ultimately aids lenders in determining whether you are eligible for their loans and, if so, the interest rate.

FICO score

A FICO Score of 670 or higher is considered to be good credit. Your access to the most advantageous, least expensive loan and credit card possibilities will increase with your credit score. Additionally, having good credit might benefit you in other ways, such as by simplifying renting an apartment.

How is it used?

Lenders generally use a person's FICO Score to determine credit approvals, conditions, and interest charges. The bank or lender will likely check your FICO Score when you apply for a mortgage, an auto loan, a credit card, or a new line of credit. A person's FICO Score is regarded as an accurate and trustworthy indicator of their propensity to make timely loan payments.

Lenders assume less risk when FICO Scores are routinely used, and you have quicker and more equitable access to the credit you require and can handle. Based on the data in your credit reports, FICO Scores employ special algorithms to estimate your credit risk.

If you consistently pay your rent on time, include that information in your credit report to increase the volume of good information shared with the credit bureaus. You can accomplish this by registering for a service like Experian Boost, which is a free service that adds qualified rent payments to your Experian credit report.

Credit utilization rate

Your credit utilization rate is often used as a major component in calculating your credit score. The amount of revolving credit you currently utilize divided by the total amount of revolving credit you have available is your credit usage rate, also called the credit utilization ratio. Put another way, your existing debt is divided by your credit limit. Typically, it is stated as a percentage.

Your credit utilization rate is frequently taken into account by credit scoring models when determining your personal credit score. Depending on the scoring model being utilized, they can have an impact of up to 30% on a credit score, ranking them among the most significant elements. A low credit utilization rate shows you are not utilizing all your available credit. By not overspending, you're doing a good job managing your credit, according to most credit scoring models. Limiting your expenditure can help you raise your credit score.

Credit mix

The variety of credit accounts you have, such as loans, credit cards, and mortgages, is referred to as your credit mix. It's one aspect that's typically taken into account when determining your credit ratings, though the weight it receives will depend on the credit scoring model being utilized. Lenders and creditors prefer to see that you have a diversified credit mix, i.e., that you have been able to handle a variety of credit accounts over time appropriately.

Benefits of a good credit score

Good credit scores can make it simpler for you to obtain additional credit or a higher credit line when needed, such as getting an auto loan, mortgage, and credit card with favorable terms and interest rates.

Expert's comment

Michael Chen, Growth Director of Notta, says, “With online credit monitors, consumers can track their credit scores and keep up with changes that can affect their scores. This can help them stay on top of their credit score and look for any potential errors or discrepancies that may hurt their score.”

Assess your situation by looking into your credit score

Beyond only your score, your credit report includes additional data as well. It serves as a history of your finances or, in other words, your credit history, listing all of your debts and the amount you have paid toward them. It will also contain your credit score.

How it can benefit you

Going through the report can help you raise your credit score. You can assess the situation by looking into your credit history to see if there are any errors and where you can improve.

2. Using a secured credit card linked with an app

Using a secured credit card is one of the ways to improve credit. Those with bad credit or no credit can raise their score with these cards. Provided that they use their secured card responsibly. Many of these credit cards are linked to practical apps that can be used to help you reach your financial objectives. As you establish credit, these apps assist you in maintaining control of your account.

Gather as much information as you can

A secured credit card with one of these apps is what you should look for. Before providing your data, thoroughly review the features of the secured card. Check if the card issuer charges a yearly fee, the interest rate that would apply if you carried a debt, and if the credit card issuer does a credit check when you apply.

The benefits of a secured card

The application process for some cards does not involve a credit check. If you're looking to get a card to start developing your credit and reach a good credit score, getting a secured credit card can be really helpful. Once your card and the app are downloaded, you'll be prepared to budget your money, pay your bills on time, and build credit.

3. Apps that help you monitor your credit

It's crucial to access your credit report and score and keep track of them at all times. Applications that notify you of changes to your credit score can help you with that. If you look online, you'll find websites that can provide you with a free credit report. You can see these changes using monitoring apps.

Security features

When things don't seem quite right, they also let you know. For instance, they can inform you if a new credit account is opened in your name.

The caveats

It's crucial to remember that these services are only intended for collecting information. They are powerless to stop someone from exploiting your personal details to apply for a card or steal your identity. Nonetheless, they do notify you when your credit score changes. Then you can evaluate if you made the changes or if someone else utilized your data improperly.

Expert's comment

Brenton Thomas, CEO of Twibi, says, “Consumers should take advantage of current technologies, which include using online tools to monitor their credit scores, working with apps to compare rates and fees for financial products, and implementing digital payment tools.”

4. Apps that help you dispute problems in your credit score

Does your credit monitoring software notify you of a mistake or unauthorized usage of your credit? If so, you should consider getting a mobile app that will assist you in resolving such concerns. Credit restoration is the main focus of specific resources and organizations. These organizations collaborate with attorneys and other experts to review your credit history and report.

How disputes are raised

After reviewing your information, they can submit letters of dispute to the credit reporting bureaus for further investigation. These applications can have information on your credit report erased when it is found to be false.

5. Budgeting apps connected to your bank account

A low credit score can also be overcome by altering your spending patterns. Your repayment history for loans is taken into account when calculating your score. Your credit score may suffer if you frequently use the maximum amount that is allowed by your card's credit limit. You should try to reduce your spending so that the amount stays below your card's credit limit.

Use a budgeting app to stay within your budget

Change isn't always simple, but technology may make it easier. Using a budgeting app connected to your bank account is one solution to these problems. The software can assist you in maintaining your goals after you've chosen a budget.

How budgeting apps help

Your savings and checking account, as well as your credit cards, can be connected to these budgeting apps. They can instantly display the amount you've spent in each of your several spending categories. How closely you are adhering to your monthly budget will soon become apparent. This might help you see exactly where your money is going and where you can reduce spending to save money.

Take advantage of automated payments

You should also consider setting up automated payments to ensure your dues, like utility bills and rent payments, are paid right on time. Chen says, “Take advantage of automated payments. Set up automated payments for any bills or debts to ensure you pay on time. This can help to improve credit scores by showing a consistent and reliable payment history.”

Expert's comment

Making on-time payments is crucial when it comes to raising your credit score. Chen says, “Use credit cards responsibly by making sure they keep their total credit card debt within a reasonable amount relative to their total income. They should pay off their credit card balances each month in full to ensure no late payments occur.” You should also try not to use up the credit limit of your credit card.

6. Debt calculators and debt planners

Once your budget is established, use a debt planner and calculator software to focus solely on debt. You are able to see all of your debt here. Furthermore, these programs may estimate how long it will take to pay off each debt.

How debt planners help

Take student loan bills as an example. Depending on your current payment arrangement, they might just show you how long it will take to pay them off. Say, if you add an extra $50 every month, debt-planning tools can even assess how the timeline and interest would vary based on the changed repayment amount.

Getting a credit builder loan is an excellent idea for building credit

Unlike regular loans, credit-builder loans are unique. In the case of a conventional loan, you can be given the money you need upfront and have to pay it back over time. In contrast, if you take out a credit-builder loan, you would make regular payments to the lender, and then, after the loan's term is through, you would have access to the total amount.

You have the chance to demonstrate your ability to consistently make on-time payments by applying for a credit-builder loan. Also, it might aid in credit development because payment history is a crucial component in determining credit scores.

Do you need to have a good credit score to get a credit builder loan?

An application for a credit-builder loan does not require good credit. However, you might be required to pay an upfront fee.

How does it work?

According to the Consumer Financial Protection Bureau, your lender will open a savings account or certificate of deposit (CD) with a loan amount generally of $300 to $1,000. (CFPB). The approval odds are also high in this case, even with a low credit score. The loan could earn interest depending on the account and the lender.

Typically over the period of six to 24 months, you'll make installment payments on the loan—with interest. Your lender must notify at least one of the three main credit bureaus each month of the specifics of your payments, including whether they were made on time. Your lender will release the funds to you if all of your payments have been made on time at the loan's end. You'll have to ensure that you'll make timely payments; otherwise, it may affect your credit score.

Local credit unions and community banks offer credit-builder loans. You'll also find many Online lenders, financial technology firms, and apps that focus on assisting people in building credit and restoring their credit.

Beware of fraudsters

For a charge, several for-profit businesses assert that they can get damaging material removed from your credit report. Yet, the truth is that if the information in your file is accurate, no organization can legally delete it. Instead of spending money on credit repair, lower your debt levels and make on-time payments to your creditors to raise your credit score.


It's simple to follow the routine of always paying with a credit card. Whether you prefer the comfort of not carrying cash or are all about getting incentives when you spend, it can be a quick and easy method of payment. How about your other credit card usage patterns? Do you use your credit card in a way that improves or damages your credit? Whether they have access to the newest electronic tools, customers should ask themselves these questions.

Brenton Thomas quite succinctly says, “Consumers should pay their bills on time, avoid taking on too much debt and use credit responsibly. Finally, consumers should look for tools and resources to help them manage their finances and build credit, such as budgeting apps, credit counseling, and financial coaching.”

Using your credit card appropriately can be useful for establishing, repairing, or maintaining your credit. Making sure that your credit card use improves rather than harms your credit can be achieved by paying your bills on time, paying more than the required amount, only utilizing credit that you actually need, not exhausting your credit limit, and monitoring your credit.

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