Credit Building > Bits Review: Building Credit Bit by Bit, But Is It Stable?

Bits Review: Building Credit Bit by Bit, But Is It Stable?

1 minute read · Updated 18th April 2024

What is Bits?

Bits is a credit builder, and its credit building plan works through its subscription service. You pay a monthly fee, choosing an amount from £6 to £60, and they charge this fee to a digital credit card and report your payments to credit agencies. The goal is to build your credit history which hopefully will improve your credit score.

The credit building works in two main ways. First, they report your on-time payments. Second, they give you a credit line but expect you to use just a little of it. This can keep your credit use low, which credit agencies like.

They also offers videos and tools in their app to teach you about credit scores and money management.

Can you use the Bits Store Card for anything else?

You can also use the Bits Store Card to shop in their app. This might lead to bigger positive reports to credit agencies, helping your score even more. They also let you apply for a Bits Credit Card. It's a Mastercard you can use everywhere, not just for in-app purchases.

You control how much you spend on both the Bits Store Card and the Bits Credit Card. This influences what they report to the credit agencies each month. The Mastercard also has a feature you can turn on that stops you from spending more than 20% of your limit. This helps prevent overspending so you don't get into more debt, and helps keep your credit use low.

Here are several other things about Bits that it’s worth keeping in mind:

Missing payments on the digital store card, just like a normal credit card, can hurt your credit score.
Spending more than you can afford can also lead to more debt.
Using over 30% of your credit limit can lower your score, even if you pay on time.
You might not get approved for the Bits Credit Card. If that happens, you can only use the Bits Store Card card in their app.
The information you can get in their app is general and not personalised.
To cancel, you must contact them directly. Deleting the app won't end your plan.