Overview
Every credit profile is different, and choosing the right type of credit builder can feel confusing. The good news is that there’s no single “right” answer for everyone!
Here’s a simple way to think about which option may be more helpful for you right now.
When a revolving credit builder may help
A revolving credit builder may be a good fit if:
- High credit card balances are hurting your score
- Your credit utilization is above recommended levels
- You want to increase your available revolving credit without using a traditional credit card
Revolv was designed specifically to help lower utilization, which is an important part of your credit score.
When an installment credit builder may help
An installment credit builder may be a good fit if:
- You don’t currently have any installment credit on your report, such as an auto loan, mortgage, or student loan
- You want to build consistent monthly payment history tied to a fixed loan
- Your credit profile would benefit from adding a different type of account
Installment accounts focus on building payment history through regular, scheduled payments.
Why some people use both
If you only have one type of credit account, either installment or revolving, adding the other type can help improve your credit mix.
Many CreditStrong customers choose to use both an installment and a revolving credit builder at the same time, as long as the payments remain affordable and manageable.
The most important factor
No matter which type of account you choose, the most important thing is to make your payments on time.
Payment history is the largest factor in your credit score. Consistency matters more than the specific product.
Check out our article on your FICO 8 Score Factors to learn more about what drives your score.