There’s a lot of talk concerning chatbots and “AI-powered” applications right now. As a writer for credit cards, I was looking to break through the jargon and help you find ways to build credit using artificial intelligence.
I also had a conversation with an expert about how AI can level the playing field for ordinary people.
“I was simply fascinated by the reality that all of my American classmates had credit cards and I’d not seen it in the country I grew up in,” Chen says.
She learned how to use credit responsibly by requesting the student credit card at she turned 18. When she was 21, she had enough credit score to afford the car she wanted and to rent an apartment.
In the present, she is co-founder and CEO of Kikoff, an AI credit-building tool called Kikoff. Chen hopes to improve access to financial services for all Americans and especially for people with low incomes, as well as those with language barriers or with disabilities.
Table of Contents
1. Make use of AI to comprehend your credit report
Then, you can tap into the analytical capabilities of AI to unravel your credit past.
Begin by getting a free version of your credit score at AnnualReport.com. Next, go to ChatGPT or the chatbot you prefer and upload the report using an inquiry like “Can you look over the credit score of my client and suggest areas that could be improved?”
I compared it to the help of my Experian credit report and here are some things that it analyzed for me.
- Credit utilization: Although I only had the smallest amount on two different credit cards, I’d booked flights to international destinations using my travel credit card and as I accessed the report at the beginning of my billing cycle, my utilization of credit was much higher than the suggested 30 percent. ChatGPT recommended that I pay off the card in the middle of the cycle for me to get my use to a lower level. After I made the payment I saw a small improvement on my score.
- Credit age: I’d shut down several accounts with a good payment history, which reduced my credit score. (This occurred before I became certified as a Credit Counselor. Now I’m aware!) I listened to ChatGPT’s advice to not close any other accounts and to keep them active by paying modest fees.
- Improvement in credit score: ChatGPT projected my credit score to increase over the coming six months, which suggests I’ll achieve my desired score before the beginning of 2026. This is helpful if I intend applying for a mortgage or loan soon.
It is also possible to perform this using an app such as Kikoff. “It takes a long time even for a knowledgeable consumer to comprehend and digest every aspect of your credit file,” Chen explains. “We make use of AI to break down the data and then present it to customers in a highly digestible manner, as well as provide an extremely concise list of steps they should do.”
2. Make use of AI to increase your credit score
Certain AI-powered apps and tools can assist you in improving your score on credit.
For instance for instance, the Cleo application makes use of AI to track your spending and provide financial advice. You can even communicate with “her.” Additionally, Cleo customers applying for Cleo Card can utilize it to establish credit at a low riskdue to the security deposit feature and autopay feature which makes it impossible to make payments.
While credit score simulators aren’t brand new however, you can take it one step further by using chatbots. You can try prompts such as “If I can pay off my student loans by 2028 and have all my existing accounts open What will my credit score look like in the future?” or “How many points would my credit score be affected in the event that I decide to apply for a credit card during the month?”
3. Make use of AI to identify the errors in your credit report
A study conducted in 2024 conducted by Consumer Reports and WorkMoney found that more than 2 out of 5 people (44 per cent) have at least one mistake on their credit reports. It is possible to use the AI chatbot to identify and correct any errors on your credit report that could affect you credit scores.
Use the prompt below: “Can you thoroughly check my credit report to ensure that there are no mistakes?” When I did this, ChatGPT returned the following observations:
- Name variations: My name is displayed slightly differently on certain loans, using either my name as a full-time job or nickname as well as often the middle initial of my name. Although it doesn’t directly impact the credit rating of my score, it might if the credit bureau misread my file with that of someone else.
- The hard inquiries: I received one difficult inquiry in my credit file however, there were several recent soft inquiries from issuers that sent me preapproval letters. ChatGPT (mistakenly) identified the inquiries as hard inquiriesbut I was happy to receive the notification, as I’d have to file a dispute should they be.
- Telephone number: I found two phone numbers in my report that were not my own. ChatGPT explained that it could be due to a file mismatch or a warning signal of fraud. It also suggested that I contest the report with Experian and create an alert to detect fraud.
ChatGPT also provided me with the option of writing an email or a dispute letter in my name, along with all the information required, to rectify any errors.
4. Make use of AI to bargain directly with the card issuer
It is not widely known that collection agencies and lenders are usually willing to talk with debtorssince getting the money back is more beneficial than nothing at all. But, not all are at ease with the discussion. This is where AI comes in.
Kikoff utilizes voice recognition to talk to a bank and collector in the name of a consumer. For instance when you have a debt of $4,000 on your credit card, Chen says the AI agent can get the amount reduced to $2,400 which you can pay over time in installments.
According to Kikoff the negotiations are successful 77 % of the time. the clients have cut their debt by a mean of 30.
It may sound odd to let a machine deal with you. When I asked if the debt collectors and lenders are open to the idea, Chen said it depends: “Some companies are very flexible about this concept, and they’ll be working using Voice AI.”
She also explains that in the near future, AI might be the normthe lenders will utilize the company’s AI operators, which means that discussions are likely to involve AI against AI.
If you struggle when talking on the phone, be it due to language barriers or handicap An AI negotiator may change the game.
5. Make use of AI to create an arrangement for repayment of debt
If you’re a credit card holder this could increase your credit utilization, and eventually cause missed payments which can hurt your score on credit.
However, debt repayment can be a challenge to manage by yourself. You’ll need to establish an outline of your budget, decide which credit card to pay first, and then figure out a time frame for repayment. AI can help.
You can input all of details about your debt into chatbots, such as your current balances as well as APRs. You can then ask it to offer an option for repayment of your debt. You may also request assistance in determining other crucial details, like the amount of you can earn in a month.
If you’re planning to utilize a tool, such as the balance transfer card or credit card for debt consolidation this tool can help you evaluate costs and decide the one that is right for you.
How can you ensure that your data is safe while using AI
Credit reports are confidential documents that contain personal identifiable data (PII). If you are using AI to analyze your credit score, you should take these steps to ensure that your information remains secure.
- Turn off sharing of your data: Chatbots will have a setting that lets you choose whether or not you want them to utilize your data to train models. For instance, ChatGPT calls the setting “Improve the model for all users,” which you can turn off. The idea is to inform your AI platform that you don’t wish to have your data used in any way outside of the context of.
- Black out PII: Editing software can be used to erase personal information in your credit reports such as your full name addresses, Social Security number, date of birth, account number and any other data that is specific to you.
- Create the multi-factor authenticating (MFA): After you’ve established an account through chatbots or an AI application, you’ll be able to configure MFA or two-factor authentication by adjusting the settings. This will make it more difficult for hackers to gain access to your account, particularly in the event that your password has been compromised.
The most important thing is the bottom line
A good credit score isn’t just a matter of flexing your credit but a signal that you’re financially stable. Just ask Chen.
Alongside being chief executive, Chen is a single mother of two sons. “For every single mom to have this type level of protection from financial stress is extremely crucial,” she explains. Any tool that helps you establish credit, such as AI is worth looking into.
