Best Credit Building Apps

Building good credit can feel like a catch-22: you need credit to get credit, but how do you start when nobody wants to lend to you?

Whether you're new to Canada or simply haven't built credit history yet, the right credit building app can transform your financial future.

Let's explore the top credit building apps that can help you establish, rebuild, or improve your credit score – turning what used to be a confusing process into something you can manage right from your phone.

1. KOHO

KOHO's Credit Building offers a safe way to build credit without the risks of traditional credit cards or lenders, helping you achieve the same goal: a stronger credit history.

With KOHO, you could:

• Have better credit in 4 months

• Build credit without a credit card

• See credit scores increase by an average of 31+ points in just 4 months¹.

KOHO reports your payments to Equifax on your behalf so you don't have to worry about it.

2. Borrowell

Provides free credit monitoring combined with credit building and rent reporting.

Features:

• Free credit score and monthly credit report updates

• Rent reporting that can help build credit through rent payments

• Credit builder loan

3. Kikoff

A straightforward credit building approach through a credit line designed specifically for building credit history.

Features:

• Build credit by reporting on-time payments

• Reports rent and utility payments (phone, electricity, gas, water) to help build credit

• Offers a secured credit card

How to choose the right credit building app

Consider these factors when selecting your credit building solution:

• No credit history? → KOHO

• Some credit but want to improve? → KOHO

• Just want to track progress? → KOHO

Your financial situation:

• Limited income: Focus on apps with low barriers to entry like KOHO

• Stable income: Consider broader options including installment loans

• Irregular income: Prioritize flexible solutions without fixed debt payments

Understanding credit building basics

Before diving into apps, understand what actually builds credit:

Payment history (35% of your score): Consistently making on-time payments is the most important factor.

Credit utilization (30%): Keeping balances low relative to limits.

Length of credit history (15%): How long you've had credit accounts.

Credit mix (10%): Having different types of credit (cards, loans, etc.). You can build this over time as your credit improves.

New credit inquiries (10%): Too many applications hurt your score. Focus on building with existing accounts rather than constantly applying for new credit.

Common credit building mistakes to avoid

Applying for too many credit products at once: Each application can temporarily lower your score, and rejections don't help build credit.

Focusing only on monitoring: Knowing your score is useful, but you need actual credit building activities to improve it.

Taking on more debt than you can handle: Building credit through debt that you struggle to repay defeats the purpose and can damage your score.

Expecting instant results: Credit building takes time – typically 3-6 months to see initial improvements, and 12+ months for significant changes.

Ignoring other financial habits: Credit building works best when combined with good overall money management.

Your credit building action plan

Step 1: Start with KOHO's Credit Builder Loan to establish positive payment history safely and affordably.

Step 2: Check the KOHO app to track your progress and learn about credit.

Step 3: Develop good financial habits using KOHO's tools to support your credit goals.

Step 5: Be patient and consistent – credit building is a marathon, not a sprint.

Step 6: Gradually expand to other credit products once you've established a solid foundation.

Transform your financial future today

Building good credit isn't just about getting loans – it affects your ability to rent apartments or get better insurance rates or even applying for a mortgage. The sooner you start building credit responsibly, the more financial doors will open for you.

The best credit building app is one that not only helps improve your score but also teaches you good financial habits that support long-term success.

^{¹Based on users with a starting score of 500 or less and who signed up for credit building in October 2024. Credit Building is not a credit repair tool and does not guarantee an improvement in credit score. Credit scores are based on complex models involving a variety of factors. Consistent on-time payments help improve scores and missed or late payments may cause credit scores to decrease. Outcomes may vary among users.}