You probably already know that good credit opens doors. It shows you to be someone trustworthy to repay loans. Good credit can secure you that apartment lease, get you lower interest rates, the best credit cards. It takes time: the sooner you start, the more flexibility and possibility you’ll have.
Our goal at Kikoff is to give you fair, effective, and simple pathways to help you meet your financial goals. And our latest Credit Account is a credit-builder designed to do exactly that.
We help you with three crucial factors that determine your credit: payment history, credit utilization, and average account age. We wanted to make the Credit Account as transparent and straightforward as possible–no fees, no interest. Building your credit should be easy!
Sign up for a Kikoff Credit Account
You’ll be instantly approved so you can get started that same day. We don’t do a credit check. We definitely don’t do a hard pull on your account, which could negatively impact your score.
Quick note–if you’re an existing account holder with us and want to join the Kikoff Credit Account, you’ll still need to sign up for this!
Buy something on credit
You’ll have a $500 credit limit to use in the Kikoff store, and you’ll make your payments with your Kikoff Credit Account. This credit account is only valid in the Kikoff store, with no physical card.
Pay $2 back every month
Every on-time payment you make will help you build your credit. It only takes one click each month.
We’ll guide you through setting up a repayment plan for your purchase, to make sure you stay on track with building your payment history. We’ll also tell you how much remaining balance you have at any time and how many months left you have.
Payments will be due around three weeks after you make that first purchase. Then they’ll be on the same day of the month, every month. We report to major credit bureaus Equifax and Experian.
So when will Kikoff show up on your credit report? It depends! We report payments at the end of each month, and after that it can take up to two weeks to be processed. So if you make your payments at the beginning of the month, it’ll take a bit longer for Kikoff to appear on your credit report. But don’t worry–you can always keep track of your score just by signing into your Kikoff account.
The Credit Account addresses three key areas that affect your credit: payment history, credit utilization, and average account age. These are all part of a wider range of factors that determine your score. (We highlighted the ones Kikoff helps you out with below!)
Payment history makes up 35% of your credit score. It specifically looks at whether you’ve paid past credit bills on time. This is the single most important factor in your credit score.
How Kikoff helps: When you pay back $2 every month, we’ll report each of those payments to the major credit bureaus. We’ll send you reminders to make sure you make your payments on-time. Each one builds your payment history–and your credit.
You might be wondering how the Credit Account is different from any other card that you pay back every month. We’re designed to maximize credit. We encourage long payment history in addition to low credit utilization, which brings us to our next section…
Another piece of the credit score puzzle is credit utilization. This makes up 30% of your credit score. It’s the ratio of how much credit you’ve used to how much you can use, or your credit limit. The lower this ratio, the better for your credit.
How Kikoff helps: The Kikoff Credit Account is designed for low utilization rates. Our e-books start at only $10, which means that buying one on credit could run you a utilization rate of only around 2%.
And finally, the length of your credit history accounts for 15% of your score. The older your accounts, the better. The Credit Account doesn’t expire, so keeping it open will continue to increase the average age of your accounts.
A quick note–when you initially open a Credit Account, you may notice that your account age drops. Depending on the number and ages of your other accounts, that may even impact your credit. But remember that this drop is only short term! Starting a brand new account can bring your average age down. If you keep that account open, though, the average will go up even more than you started with. Opening a Credit Account gives you a long term positive with age.
More questions? Check out our FAQ page!