How Do Credit Builders Work From A-Z
How Do Credit Builders Work?
A credit builder is an existing account that adds good credit history to your credit report.
It’s the same concept of having your friends or family add you to their account.
You probably didn’t know that anyone can add you to their credit builder.
There are people with excellent credit willing to add you to their good credit history temporarily.
Once you’re added to the account, the established history will appear on your credit, so you wouldn’t have to spend several years building your credit.
Since the card history transfers to your report, it could give you the boost you need to achieve your own financial goals.
Case Study – How Do Credit Builders Work?
The FICO algorithm uses over 100 data points to calculate your credit score and risk. However, there are five main factors you need to keep in mind.
Each of these factors is like a grade.
And the goal of the credit builder is to increase your credit score grade for each of the five categories.
| Legend |  |  |  |  |  |
| Meaning | A grade | B grade | C grade | D grade | F grade |
Credit Builder Profile – Meet Jada
A credit builder profile is someone without established credit history and less than two negative items on your report. These profiles have the most credit score impact and benefit from adding a credit builder.
| Credit Grade Before Credit Builder | Credit Grade After Credit Builder |
| |
Her overall grade increased from a C to a B. So, she’s was the perfect candidate for a credit builder!
Before Credit Builder
After Credit Builder
Result
Tip: Figuring out the right credit builder is vital. See our next step section below to get started.
Are you ready to get started?
Credit Repair Profile – Meet Lindsay
Credit repair profiles have several negative and positive items on their report.
| Credit Grade Before Credit Builder | Credit Grade After Credit Builder |
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So, her profile is unlikely to benefit from a credit builder because she has a handful of negative accounts.
Tip: If you fall in this category, first complete credit repair by removing the negative items from your report.
Combination Profile – Meet Sebastian
A combination profile needs both credit repair and credit builder. These profiles typically have significant bad credit with few positive accounts on their credit report.
They may need to get help from a credit repair company or apply credit repair techniques to improve their current credit situation.
| Credit Grade Before Credit Builder | Credit Grade After Credit Builder |
| |
Before Credit Builder
After Credit Builder
Result
Tip: You should only get a credit builder in the combination credit profile on or after you’ve started credit repair, and you have a short time frame of 3-4 months to get to your target score.
Are you more like Jada, Lindsay, or Sebastian? If you’re still not sure, we’ve got the perfect tool to help you figure it out.
Is your profile a good fit for a credit builder?
How to Buy Credit Builders to Boost Credit Score
Getting started is simple!
- Tell us about your goals
- Answer a few questions about your credit file
- We’ll match you with the 3 best options based on your credit file and budget
- Select an option and checkout securely online
- Complete your account creation process and upload your IDs
We’ll add you to the card and you’ll get a confirmation email for your records.
Keep in mind that you wouldn’t receive a card in the mail, but we’ll add the account to your credit report, and it will show up in a few weeks.
Your credit could benefit from the card age, perfect payment history, and credit limit so you could get to your goals sooner.