Does Current Help Build Credit? Here’s How It Works

Current is a financial technology company offering features to help individuals build or improve their credit history. Establishing a strong credit score is an important financial goal, influencing access to loans, housing, and other financial products. Current aims to support this by integrating credit building into everyday financial management, and this integration helps users work towards a healthier credit profile through responsible financial habits.

Current’s Specific Credit Building Features

A primary feature Current offers for credit building is the Current Build Card. This product functions as a secured charge card, backed by funds held in the user’s Current account. Unlike traditional secured cards that often require a separate security deposit, the Build Card uses the money in your Current spending balance as its limit. This design helps prevent debt accumulation because spending is capped at the amount deposited, ensuring users only spend what they have available.

The card is accessible to all Current members and does not involve a hard credit check, making it suitable for individuals with limited or no credit history. It operates like a typical credit card, allowing users to make purchases. Funds for purchases are set aside from the user’s Current account to pay the card’s balance at the end of each month.

How Current’s Features Report to Credit Bureaus

Current reports account activity for the Build Card to the three major credit bureaus: Equifax, Experian, and TransUnion. This reporting typically occurs around the beginning of each month.

Current reports the account status and the user’s payment history. Consistent and timely payments are reported, which is fundamental for building a positive credit history. The Build Card’s structure helps facilitate on-time payments and positive reporting.

Factors Influencing Your Credit Score

Credit scores are numerical representations of an individual’s creditworthiness, calculated from information in their credit reports. Several factors contribute to these scores, with payment history and credit utilization being the most significant. Payment history, which details whether bills are paid on time, accounts for a substantial portion of a credit score, typically around 35% to 40%. Late payments can negatively impact scores.

Another important factor is the amount owed, also known as credit utilization, which represents the percentage of available credit being used. This factor usually makes up about 20% to 30% of a credit score. Keeping credit utilization low, generally below 30% of the available credit limit, is recommended for a favorable score. Other factors include the length of credit history, new credit applications, and the mix of credit types managed.

Utilizing Current for Credit Building

To effectively use Current for credit building, consistent and responsible engagement with the Build Card is necessary. Activating the card and making regular purchases helps establish an active credit history. Ensuring sufficient funds are available for purchases prevents overspending and supports timely payments.

Making consistent, on-time payments is the most impactful action, as payment history is a primary determinant of credit scores. Enabling the AutoPay feature can help ensure payments are never missed. Monitoring account activity and understanding how your spending translates to reported payment behavior can further reinforce positive habits.