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  • Faisal Khalid

Can a credit building product help me if I’m in default?

Updated: Feb 4

Short answer - no.

Credit building products work best when you don’t have a credit history, or have a limited credit history. Indeed, they also work well if you have had a bad history in the past, but are now on a path to repair. However, if you are currently in default / not paying another credit card or loan, then you shouldn’t expect much impact, if any, from a credit building product.

Being in default affects your credit score in multiple ways, and negates any minimal positive impact that’ll come from a credit building product. So your best course of action is to sort out the default first / get your house in order, and then wait a bit before moving on to a credit building product.

Why does it work this way? More on this to follow in the next blog post.

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