Ava vs Kikoff | The Best Way to Build Your Credit Score

Summary

This video compares two innovative credit-building services, Kickoff and Ava, helping viewers understand which option best fits their needs. Kickoff offers a $750 credit line usable for financial literacy content, rent reporting, and a secured card, reporting to Experian and Equifax. Ava provides a credit Builder loan and virtual card that report to all major credit bureaus, enabling rapid credit score improvements, automated rent reporting, and low credit utilization. While Kickoff is ideal for those seeking educational tools and a secured card, Ava delivers faster, hands-off results. The video also highlights Ava's $1 trial offer and provides guidance for choosing the right service.

Takeaways

• 😀 Kickoff helps rebuild credit with a $750 credit line used exclusively for purchasing financial literacy content, with a $5/month subscription and no interest or hidden fees.
• 😀 Kickoff offers additional features like rent reporting and a secured credit card for an extra fee, which can help further boost credit scores.
• 😀 Ava offers two products: a Credit Builder Loan and the Ava Card, which helps users build credit through fixed monthly contributions and reporting of bill payments to the credit bureaus.
• 😀 Ava's Credit Builder Loan allows users to contribute $25, $50, or $100 per month for 12 or 24 months, with a goal of building credit while saving money.
• 😀 74% of Ava users see a credit score increase within 7 days, with an average increase of 45 points, thanks to quick reporting to all three major credit bureaus.
• 😀 Ava's Credit Builder Loan comes with no hidden fees or interest, making it one of the best value-for-money credit-building options.
• 😀 Ava's virtual card helps report bill payments (e.g., Netflix, Prime) to the credit bureaus, with no interest, no deposits, and no credit check required.
• 😀 The Ava Card also has a low credit utilization feature that helps improve credit scores by setting a spending limit lower than the available credit limit.
• 😀 Ava charges $9/month for its credit builder service, but users can take advantage of a $1 trial and use the promo code 'Apple' for a discounted price.
• 😀 Kickoff may be more suitable for users looking for a non-credit card approach and those interested in financial literacy resources, whereas Ava is better for quick and passive credit score improvements.

Q & A

What is Kickoff, and how does it help in building credit?

Kickoff is a service designed to help individuals rebuild and improve their credit by offering a $750 credit line that can only be used to purchase financial literacy content on their website. It charges a $5 monthly subscription, with no hidden fees or interest. Kickoff reports to Experian and Equifax and includes additional features like rent reporting and a secured credit card for those who want them.

What are the unique features of Kickoff compared to other credit-building services?

Kickoff stands out for its focus on financial literacy content, offering a small credit line that is strictly for purchases within their store. It also offers rent reporting at no additional charge, which is beneficial for individuals looking to improve their credit through their rent payments. Additionally, it offers a secured credit card with a one-time deposit.

How does Ava’s credit-building service work?

Ava offers two main products: a Credit Builder loan and the Ava card. The Credit Builder loan involves making fixed monthly contributions, which are reported to credit bureaus as on-time payments. Ava also offers a virtual card that allows you to report everyday bill payments (like Netflix or Spotify) to credit bureaus, improving your credit without hidden fees or interest.

What is the cost structure of Ava's services?

Ava’s Credit Builder service costs $9 per month. However, the Ava card itself is free to use. Ava also offers a $1 trial for new users, allowing them to experience the service before committing. The annual cost of the Credit Builder can be reduced to $72 if paid yearly.

How does the Ava card help build credit?

The Ava card helps build credit by reporting payments for services like Netflix, iCloud, and Spotify to all three major credit bureaus. There is no interest, no deposit requirement, and no credit check. Additionally, Ava sets a low monthly spending limit to encourage low credit utilization, which benefits the user’s credit score.

What is the Ava Credit Builder loan process?

To use Ava’s Credit Builder loan, you first apply and choose a monthly contribution amount (either $25, $50, or $100). You then select the duration of the loan (12 or 24 months). At the end of the loan period, you have access to the total amount you contributed, while your on-time payments are reported to the credit bureaus to help improve your credit score.

How quickly can you see results from using Ava's services?

Ava’s services can lead to a rapid increase in your credit score. 74% of Ava’s users see a score increase in 7 days or less, and on average, users see an increase of 45 points. This fast impact is possible due to their quick reporting system, which updates the credit bureaus within 7 days of signing up and within 24 hours of every on-time payment.

What are the differences in credit bureaus reported by Kickoff and Ava?

Kickoff reports only to Experian and Equifax, whereas Ava reports to all three major credit bureaus: Experian, Equifax, and TransUnion. This broader reporting scope with Ava can have a more widespread impact on improving a user's credit score.

What is the advantage of Ava's rent reporting feature?

Ava’s rent reporting feature allows users to report their rent payments to all three major credit bureaus at no extra cost. This can help improve a person's credit score by adding positive payment history, which is especially useful for renters who want to boost their credit without using traditional credit cards.

Which service is better for someone who wants a quick and passive way to improve their credit score?

Ava is likely the better choice for someone looking for a quick and passive way to build credit. The Ava card and Credit Builder loan are both designed to work in the background, automatically improving your credit score without requiring constant attention. Kickoff, while effective, may not provide as rapid or passive a process.