Pockit vs Creditspring: Which is the best credit builder?

Improving your credit score is a massive step towards better financial health. And a higher score can help you get approved for finance, mortgages and more.

But how do you pick the best credit builder solution?  Both Pockit and Creditspring rank among some of the most popular credit builder solutions on the market today, but you might be wondering which is better.

While both tools are designed to improve your credit score, if you’ve been looking into Pockit vs Creditspring you’ll know that how they work couldn’t be more different. In this article, we’ll take a deep dive into both options so you can decide for yourself which is the best solution for you.

Pockit vs Creditspring: Credit builders at a glance

The main difference between Creditspring and Pockit is the core model they operate through. Creditspring is a subscription-based credit service that offers interest-free loans, while Pockit credit builder works through the prepaid card model. That means with Pockit you also get a prepaid contactless Mastercard to use at the same time as you build your credit score.

Pockit vs CreditSpring: How they work 

Creditspring offers multiple levels of subscription, each with its own monthly subscription cost and fixed borrowing amount. You subscribe to their service monthly to have access to their credit building loans and you can use these interest-free loans up to two times per year. Creditspring then reports your repayments to the three main credit reference agencies (CRAs) in the UK.

The idea behind Creditspring is to use small, fixed, manageable loans to build a history of on-time payments. 

Loans are repaid over six monthly instalments and Creditspring doesn’t impose late fees for missed payments, though they will report you to CRAs if you miss payments; this can actually harm your credit score. 

Pockit takes a completely different approach and Pockit’s ‘Fast Track to Credit’ solution is integrated into the prepaid card model.

Prepaid cards work just like debit cards only you load money onto them before using them (via cash, salary, or bank transfer). They aren’t linked to a normal bank account but do offer similar functionality like being able to make payments in-store and online, transfer money, and manage your finances.

With Pockit’s credit builder, you make manageable monthly payments of £9.99 or as part of your prepaid card payments. This is then reported to all of the three main CRAs to prove your financial responsibility.

As well as having a card to use as normal, you also get helpful benefits like cashback, savings on utilities, and even access to credit facilities like loans (after 3 months) and salary advances.

Pockit also won’t report any missed payments to CRAs, and will simply downgrade your card to a basic prepaid card if you can no longer afford your monthly fee. You can also cancel at any time.

Pockit vs CreditSpring: Ease of setup

To set up Creditspring you’ll need to ensure you’re eligible. This means you need to make at least £14,000 per year, have proof of income, and no CCJs/IVAs/Bankruptcies. You’ll also need to provide proof of identity and proof of address and pass their credit checks.

Once you know you’re eligible, the account/subscription setup can be done in less than 5 minutes. However, there is a 14-day cooling-off period before you can access any credit facilities, and funds can take up to 24 hours to transfer after the cooling-off period.

Pockit is more straightforward. You can set up your prepaid card and Fast Track to Credit in as little as 3 minutes online. There are no hard credit checks and you’ll just need to provide proof of identity (ID) and proof of address.

How quickly do Pockit & Creditspring improve your credit score?

With Pockit, you can start improving your credit score in as little as 3 months. CreditSpring takes around 6-9 months. 

It’s important to note that with Creditspring, this time period starts once you have begun making your loan repayments. You’ll need to factor in the 14-day cooling off, the up-to-24-hour transfer time, and then the amount of time until the first monthly repayment you make.

Pockit vs Creditspring: Financial help

Pockit offers a wide range of financial tools as part of the prepaid card model. There’s a full mobile ‘banking’ app to manage your money, tons of educational resources and even a built-in budgeting tool to help you keep on top of finances.

Creditspring includes financial advice content along with a helpful financial tracker which you can access through the Creditspring website. 

Pockit vs CreditSpring: Fee structure

Pockit’s credit builder works on a simple flat monthly fee of £9.99 to immediately start improving your credit score. There are no hidden costs whatsoever.

The fee associated with using Creditspring will depend on the level of subscription you get. A basic subscription is £7 per month and higher subscriptions run up to £24. The higher the subscription, the more money you can borrow. 

Step is £7 per month and gives access to two £200 loans, Core is £10 per month and gives access to two £300 loans, and Plus is £14 per month and gives access to two £500 loans. There’s also Extra which is £24 per month and gives access to two £1200 loans.

You’ll also need to factor in the sixth monthly repayments on top of the initial subscription. For instance, a £300 loan with Creditspring’s core subscription, would mean a £50 monthly repayment + £10 subscription fee totalling £60 per month.

Pockit vs CreditSpring: Support features

Pockit offers fast customer support through online chat, an email service and a dedicated help centre on the website or app along with a detailed FAQ section. 

Creditspring has a help centre on their website which they state is the most efficient way to receive customer support, as well as an email address and telephone number.

Security of Pockit and Creditspring

CreditSpring and Pockit are both highly secure solutions. For example, Pockit follows safeguarding which means that your money is stored separately from other funds and you are protected in case anything happens to Pockit as a company. Learn more here.  

Pockit vs Creditspring: rewards and benefits

Creditspring’s rewards include periodic investment offers, along with coffee shop discounts. 

Pockit offers a more comprehensive reward system including 2.5% cashback (terms apply), savings on utilities and in high street shops, as well as access to credit facilities like 0% interest loans and salary advances. 

For instance, you could borrow up to £500 after 3 months of paying your £9.99 per month fee, and easily repay in 3 monthly instalments with a small flat fee.

Choosing the right credit builder account for you

We hope this article has made your decision easier and you don’t need to keep scrolling through Pockit vs Creditspring reviews. Both solutions offer a unique approach to building credit and which is the most suitable for you will depend on your personal financial situation.

If you’re looking for a simple, low-risk approach to credit building where missed payments won’t harm your credit rating, then Pockit is a great option for you. Especially given you’ll also get access to one of the best prepaid cards on the market and great rewards like cash back and savings.

Sign up for Pockit’s Fast Track to Credit today in as little as 3 minutes and start your journey towards better financial health.

FAQs

How should you choose a credit builder?

To choose the right credit builder for your individual case, consider your financial goals and look closely into the features offered by each service. To avoid hidden costs, you should always look for a simple fee structure and a solution that’s easy to opt out of.

How do Pockit and CreditSpring handle missed payments?

Pockit does not charge a fee for missed payments or report to credit reference agencies so there’s no risk of damaging your credit score. As Creditspring is loaning you money, missed payments can be reported to CRAs and negatively affect your score.

What do you need to apply for a credit builder?

To apply for a credit builder, you’ll generally need to provide proof of identification and proof of address. With Creditspring you’ll also need to provide proof of income and be eligible for their services, including passing credit checks.