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The way to financial health generally involves increasing credit scores and getting rid of debt. Most often, solutions for both require more income, less spending, and paying on time. As is the case with most things, this is much more complicated to accomplish than it is.
Enter AI
Advanced algorithms aren’t able to and won’t give you money or even remove your debt problems. But AIs can aid you manage your financial habits and help you create positive, long-lasting adjustments.
From 24-hour monitoring of your account to providing (not-so) gentle encouraging words, these are the ways AI can assist you in improving your credit score as well as manage your debts.
Personalized financial advice
AI excels in the area of data crunching and can provide more understanding and valuable insights. Naturally, it’s a great instrument to study your financial data and create individual insight.
Based on your specific situation depending on your situation and AI platform you choose to use the insights you get could include:
- Debt payoff strategies
- Strategies to boost your income
- Strategies for saving
- The most beneficial credit products that can increase your credit score
If used with care, these tips could lead to more prudent spending habits, lower debt levels, and better credit scores. In the end having a good credit score is mostly about decreasing debt and making timely payments.
Assistance with budgeting and tagging
There are many budgeting tools that are designed equally, but AI tools provide you with an advantage when it comes to creating and adhering to a budget.
AI-powered budgeting applications go far over “one-size-fits-all” financial advice. They make use of the personal insights that we have mentioned earlier to help you build a budget that is suited to your lifestyle.
Utilizing sophisticated algorithms and data from your financial history and the future apps, such as Cleo:
- Analyze and collect your expenses and income data
- Sort and visualize your cash flow
- Make suggestions for adjustments to your saving and spending routines
- Offer automated savings tools
- Help you organize, track and monitor your spending. This is also known as budgeting!
When you consistently cut back on the amount your income it will allow you to pay off debts and increase your credit score in the process. Additionally, since AI continuously learns as your financial situation changes software can help you stay in the right direction effortlessly.
Reminders for bill payment
Another great thing about AI is that it’s extremely punctual. If you know a bit regarding your flow of cash (namely the date your pay arrives and your bills are paid to), Cleo can schedule future reminders for bill payments.
Because your credit history is the entirety of your score on credit, you cannot afford to delay the deadlines! (Not to mention that paying your debts is the only guaranteed method of reducing the burden of debt.)
And we don’t stop at debts. We also keep an eye on your bank accounts and inform that you’re nearing an overdraft penalty. (No they won’t harm your credit score. However, they can be irritating.)
AI-powered credit product recommendations for products that are based on AI
These days, a variety of financial products make use of AI in order to assist you manage your credit and make better decisions.
For instance, apps such as Credit Karma deploy AI to assist you in locating the most favorable interest rates and deals on credit cards in relation to your credit background.
Of course, it’s important to ensure you’re able to prove that the new loans actually contribute to your goals. (Especially in the event that you’re struggling to pay the debt you already have!)
Simulations of credit scores
Credit score simulators powered by AI, such as CreditHQ (currently in development) are a fairly new technology. They make use of AI and some inputs from users, to predict how specific actions can affect your financial situation and credit scores.
An app, for instance, could help to understand the effects of credit scores of:
- A loan is a borrowing option against. credit card
- Short-term vs. long-term debts
- Wedding planning
- The beginning of the first family
- A house purchase
- Your income can be increased or decreased
Although these apps are, in essence they are theoretical, their ability to predict your choices can assist you in making better, more deliberate decisions.
Tracking progress
After you’ve made changes to your financial practices (or even if you’re on the right track) It’s crucial to be aware of your improvement. The ability of AI to continually learn and grow is useful also in this area.
Apps such as Cleo aren’t “one and done” your financial situation; we keep track of your accounts while they are in read-only mode.
Through a bird’s eye perspective of your finances and earnings, we’ll identify potential dangers like lifestyle inflation, or forgotten debts. If you do stray from your goal, we’ll be on hand to help you get back on the right track.
Gentle (or less-than-gentle) nudging
Everybody needs a bit of encouragement at times. AI-powered financial apps can help keep your debt and credit goals on track by providing positive – or, if you want to be more extreme, negative reinforcement.
Naturally, given that Cleo is a roaster and encourages users, we are experts in this field.
Are you ready to hear how a f*ck you did on your bank account this week? Do not worry, Cleo noticed your 5 visits at Taco Bell, too.
Are you having a rough day and require a boost to avoid the urge to shop? You can ask Cleo to get you hyped up and she’ll also see your credit card balance decrease by five percent!
Debt negotiation and committing errors
AI can provide guidance and monitoring AI can also assist you manage debt and improve increase your score on credit.
The Cleo’s Haggle It tool is one example of AI-powered negotiations. With just a few details it can create letters to address all kinds of financial challenges. A simple letter and a bit of luck can help you reduce your interest rates, wipe away debts that have been accumulated or even eliminate negative credit items from your report.
Yes, there’s no guarantee. However, anything that increases your scores or decreases your debt is good for your financial future!
Fraud detection
Okay, this is not an act you perform and more something that occurs to you.
In the present, a lot of financial institutions employ some form of AI to check accounts for suspicious activities. They range from purchases that are not authorized which could affect your credit score, or even indicate of a full-blown identity theft.
It’s not possible to do anything using that (other to use apps that employ amazing AI technology) It’s just pleasant to know you’re more secure.
Create credit, and repay debts, Cleo
Badass applications like Cleo are in the forefront of figuring out the way that AI applied correctly can assist you to improve your score on credit, control your debt and manage your financial situation. With its intuitive analytical, saving, suggestion and security options that you’ll be foolish not to be in the news on a daily basis…
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