Bright (often referred to as Bright Money) is a financial management app with an emphasis on helping you pay down your credit card debt, improving your credit score and building your savings.
In this Bright review, I’ll analyze the app from my perspective as a CFP® Professional.
Bright is designed for those struggling with credit card debt, offering tools like automated debt payment plans, personal loans, rent reporting, and credit-building products. While its Debt Payoff Plan is useful for those with stable cash flow, it may not suit individuals with irregular incomes due to its reliance on historical data. The rent reporting feature is beneficial for building credit through past rent payments.
However, other products like debt refinancing and credit building might be less advantageous compared to alternatives, such as a 0% balance transfer card or a secured credit card, depending on your credit situation.
- Provides an optimized plan for paying off credit card debt.
- The 10-day free trial gives you full access to Bright.
- Offers payment protection insurance.
- Only provides assistance with credit card debt (doesn't help with other types of debt).
- Not ideal for someone with a variable income.
- Monthly fee of up to $14.99.
Bright Money at a Glance
Unlike other apps that give you advice about which debt to pay off first or how much to save, Bright’s Debt Pay-Off Plan goes a step further by automatically withdrawing funds from your checking account and applying those funds to your financial goals.
Bright’s main focus is on helping you pay down credit card debt, but it can also be used to build your credit score and/or save towards short-term financial goals, such as building an emergency fund.
Bright’s six core products are:
- Credit Line. A revolving line of credit ranging from $500 to $8,000 that helps you pay down high-interest credit card debt with variable APRs starting at 9%.
- Credit Builder. A secured loan starting at $50 that reports your on-time payments to credit bureaus to help build your credit score without charging interest.
- Debt Pay-Off Plan. An AI-driven debt management plan that automates and optimizes your credit card payments based on spending habits, balances, and available cash flow.
- Smart Round-Ups. A savings tool that rounds up your everyday purchases to the nearest $0.10, helping you save spare change towards your financial goals.
- Rent Reporting. A service that reports your rent payments to credit bureaus, potentially boosting your credit score by adding up to two years of past rent payments to your credit history.
- Personal Loans. A service that matches you with personalized loan offers of up to $10,000.
The company was started in 2019 by Avi Patchava and Petko Plachkov.
Bright’s growth up through 2021 helped it secure $31 million in Series A funding from Sequoia, Falcon Edge and Hummingbird Ventures.
How Does Bright’s Debt-Pay-Off Plan Work?
Bright’s AI technology — which powers its debt payoff recommendations and automates transactions on your behalf — is called MoneyScience.
When you sign up for Bright, you’ll be asked about your goals (either increase your credit score or pay off credit card debt), your gross annual income, your full name and your address. Then you’ll be asked to link your primary checking account.
Tip: Bright asks you to link only your checking account at first. It then pulls your debt balances from your credit report. However, the balances shown on your credit report are not updated in real-time. After the initial sign-up process is complete, you have the option to link your credit card accounts for real-time syncing. This will help Bright pull better data for your recommendations.
When you create a Bright account, you’re opening a savings account, referred to as Bright Stash. Your deposits are held by Evolve Bank & Trust or CBW Bank, both of which are FDIC-insured.
Money from your existing checking account is transferred to this Bright Stash account every 2-3 days, based on what Bright calculates you can afford.
Once transferred, the money is allocated based on what Bright’s algorithms determine is the highest and best use of those funds (according to your financial goals).
If you don’t want the automatic transfers to take place at these intervals (known as Smart Pace) Bright does allow you to choose weekly transfers, transfers each time your paycheck hits, or manual transfers.
To get a sense of how Bright works, it’s best to break down what Bright does to help you achieve specific financial outcomes. Among those outcomes are paying off credit card debt, increasing your credit score and saving towards short-term goals.
How Bright Helps You Pay Off Your Credit Card Debt
Most Bright users come to the app for assistance with paying off debt (and to be specific, credit card debt).
Bright helps with this by analyzing your existing credit card accounts, including your balances, APRs and minimum payment amounts.
Bright also has access to your spending habits, and it uses that information to determine how much you should be paying towards your credit card debt (in addition to which credit card debt should be prioritized).
By default, Bright recommends the debt avalanche method to pay off your credit card bills. This is where you’re paying the credit card with the highest APRs first, focusing only on one credit card at a time. You can see an example of this in the image below:
However, you do have the option to select the order in which you pay off your cards. Therefore, if you want to change to the debt snowball method, or pay off a certain card first, you can.
Learn more: Debt avalanche vs. debt snowball.
By default, Bright uses Smart Pace to determine the frequency of transfers. With Smart Pace, Bright is constantly monitoring your accounts, and may transfer funds into Bright Stash as often as every 2-3 days. If preferred, you can make payments weekly, each time your paycheck hits, or manually.
Bright determines how much to pay towards your credit card accounts by analyzing your checking account balance, upcoming bills, expected non-bill expenses (e.g. food and gas) and the minimum checking account balance you should maintain.
Here’s an example of how this could work:
Current checking account balance: | $2,500 |
Upcoming bills: | $1,000 |
Upcoming non-bill expenses: | $370 |
Minimum checking account balance: | $1,000 |
Bright pays: | $130 |
This isn’t some one-time transfer; Bright makes these small transfers constantly (as often as every two to three days). So if you receive unexpected income beyond your typical paycheck, Bright will put that money towards your debt within just a few days.
Bright Credit
In addition to using MoneyScience to help you pay off debt, Bright offers Bright Credit, which allows you to refinance high-interest credit card debt.
Essentially, this is a revolving line of credit.
You apply for the loan, and if approved, Bright assigns an interest rate based on factors like your credit score. If this rate is lower than your current credit card rates, Bright will pay off your credit card debt using the loan, and then you repay the loan to Bright.
The interest rate can vary between 9% and 24.99%, and the credit limit you can get ranges from $500 to $8,000.
You won’t be charged any late fees, extra fees for paying off your loan early, or any fees for applying or starting your loan.
In theory, this approach saves you money by reducing your interest payments. However, if you don’t manage to pay off the credit line with Bright and accrue more credit card debt, you could end up with even more debt to pay off.
Therefore, this strategy should only be considered if you’re confident in maintaining the cash flow needed to pay off your debt.
An alternative that could save you more money is a 0% balance transfer card.
While these typically involve a small balance transfer fee, you’ll pay 0% interest during the promotional period.
Of course, qualifying for a 0% card requires good credit (around 670 or higher). If a 0% card isn’t an option, Bright Credit could be worth considering, but only after proving you can handle paying down your debts.
There is some risk involved with this approach.
How Bright Can Increase Your Credit Score
There are five factors that determine your credit score: payment history, credit utilization rate, the age of your accounts, new credit inquiries and credit mix.
First, Bright helps you improve your payment history by automatically making the minimum payments to the right cards at the right times. Second, Bright helps you lower your credit utilization rate, which is the amount of credit card debt you’re carrying on any given card compared to the card’s credit limit.
Bright recommends that credit cards have less than a 30% credit utilization rate. If you set a goal to increase your credit score, Bright will prioritize payments to the credit card with the highest credit utilization rate and even make a second payment if necessary.
This is one of the fastest ways to increase your credit score, and is helpful for those who expect to apply for a mortgage or auto loan within the next few months.
Bright Builder
In addition to your debt-payoff plan, Bright also offers a credit-builder product called Bright Builder. This secured line of credit is designed to help you establish or improve your credit score by reporting on-time payments.
You start by depositing at least $50, which acts as collateral for a secured loan of the same amount.
Each month, you’ll make payments — either $10 or 50% of the outstanding balance — which are reported to Equifax and TransUnion, helping build your credit history. Unfortunately, Bright doesn’t report to Experian.
The product has a 0% APR and no fees for application, origination, late payments, or account closure.
Bright Builder is also not available in the states listed below:
- California
- Georgia
- Hawaii
- Maine
- Maryland
- Montana
- Nevada
- New Mexico
- North Dakota
- South Dakota
- Vermont
- West Virginia
The main advantage of Bright’s Credit Builder is that it comes with no fees. However, it only reports to two of the three major credit bureaus.
For a better long-term strategy to increase your credit score, you might consider applying for a secured credit card from a major bank like Capital One or Discover.
These secured cards often allow you to transition into a no-annual-fee unsecured card, which stays on your credit report and contributes to your credit history length (a key factor in your credit score).
Bright Rent Reporting
With an active membership for a one-time fee of $20, Bright will report up to 24 months of past rent payments and your ongoing monthly payments to the credit bureaus.
This can significantly enhance your credit score since on-time rent payments count as positive payment history, which makes up about 40% of your credit score.
Many other companies charge ongoing fees for similar services. For example, a popular alternative Boom charges $3 per month.
To qualify, you must have a valid lease, proof of rent payments, and be a U.S. citizen or permanent resident.
How Bright Helps You Increase Your Savings
The app provides a customized Bright Plan, which is a long-term financial plan that shows each goal Bright will help you with (and when).
Those familiar with Dave Ramey’s Baby Steps will recognize the strategy Bright leverages here — specifically, focusing on one goal at a time with the emphasis on first building a small emergency fund and paying off high-interest debt.
During my testing, Bright recommended the following goals in the order shown below:
- Pay off the highest-interest credit card first.
- Build an emergency fund of $1,000.
- Pay off remaining credit card debt.
- Save for future short-term goals, like a vacation, tuition or wedding.
- Start investing 5% of my monthly income.
- Build target wealth.
Note: For purposes of this review, I didn’t include my emergency fund savings account when setting up Bright, so that I could get a better sense of how the service works when one is in credit card debt.
It’s easy to debate this order based on individual circumstances. For example, if one has a 401(k) match, I’d argue it’s a better idea to focus on maximizing that match before saving for short-term goals.
If you’re past the stage where you’re paying off high-interest credit card debt, this is where creating your own customized financial plan can potentially help you accomplish your financial goals at a faster pace.
With regards to target wealth (item number six in the list above): during onboarding, Bright asks you your desired net worth. Bright then works to build you to a savings rate that would help you achieve that goal.
Bright then uses Smart Round-Ups help you reach your financial goals by automatically rounding up your everyday purchases to the nearest $0.10 and saving the spare change, allowing you to steadily build savings.
Bright vs. Tally
Tally is another useful app for those looking to get out of credit card debt, though it takes a much more aggressive approach than Bright.
Tally gives you a personal line of credit (at a lower interest rate than your existing debt), and uses that credit to pay off your high-interest debt. You then pay off your personal line of credit to Tally. In order to qualify for the line of credit, you need a minimum credit score of 660.
Tally doesn’t focus on helping you build your savings or reach other financial goals — it’s exclusively designed to help you get out of credit card debt.
Learn more in our Tally Review.
Bright’s Reputation
Overall, Bright’s mobile apps have received positive feedback. The app has a rating of 4.7 from 60,481 votes on Google Play and a 4.8 rating from 121,164 users on the Apple App Store. On TrustPilot, it also holds a 4.8 rating.
However, reviews on the Better Business Bureau (BBB) tell a different story, with a user score of just 1.2/5.
Common complaints involve users being unexpectedly charged the annual fee upfront instead of being enrolled in the monthly plan. This has caught many off guard since the membership fee is automatically drawn from your bank account. This unexpected charge can have significant negative impacts on users already facing financial difficulties.
While some users report successfully switching from an annual to a monthly plan and receiving a refund, there are numerous reports of delays in processing these refunds. For those living paycheck to paycheck, such delays can have serious consequences.
Bright Money FAQ
Bright does cost money. There are three payment options ranging from around $7 per month if paid annually to around $15 per month if paid monthly.
Bright is secure in that it uses Plaid to connect to your existing checking account. Plaid is the industry leader in financial information sharing, offering high-level security. Your savings account with Bright is FDIC Insured up to $250,000. To log in to the app, a pin number or face scan is used, so there’s an extra layer of security
Bright is unique in that it has 24-7 chat support. Testing the chat features, I was able to reach support within minutes on a number of occasions. While support staff are knowledgeable about Bright’s software, they are not financial advisers and can’t give you financial advice.
Is Bright Right For You?
Bright is helpful for people struggling with credit card debt who are not sure about the best method for paying off that debt. People in this situation can benefit most from finding a qualified financial adviser, but when you’re in debt it’s hard to make the commitment to pay for advice.
Bright serves as a viable alternative. It uses one of the best strategies for improving your financial life, paying yourself first, and automates that strategy. For those reasons, we ranked it as one of the best debt-payoff apps.
But Bright is less useful for those who don’t carry high-interest debt and may have even started to invest their money. In fact, Bright doesn’t offer any guidance or ask any questions related to tax-advantaged accounts like 401(k)s or IRAs, which would best serve their users in maximizing their investment gains.
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I cannot reach customer service to stop my membership! Numerous calls dropped, emails ignored. My banking account is now in the negative because of this. They took advantage of a 70-year-old woman on social security just wanting to better her credit. I was unaware of the $88 “membership fee” and will inevitably have to cancel my checking account.
I have been using the app for several months and have set up payments to be processed through it. I scheduled a payment for one of my credit cards, and the app indicated that it would be paid before the due date. Although the due date has arrived and the money was withdrawn from my checking account seven days ago, my credit card still shows the payment as due. I’ve tried reaching out to customer service, but I haven’t received a response for five days. The customer service is clearly lacking. It looks like I’ll have to make an extra payment to avoid a late fee, even though I really can’t afford to double up on a payment I hadn’t planned on making. I get paid once a month and usually pay almost all of my bills in the first week of the month.
Customer Service: Unreachable
Customer Service Email: Takes weeks to months to respond to a single request
Ability to Withdraw Money: No
Ability to Cancel Membership Fee: No
This company fails to respond to support requests, does not resolve issues, and prohibits the withdrawal of any funds added to your account. They claim that transferring money from one account to another violates federal regulations, which is entirely incorrect. If you indicate that you no longer have access to an old account because it has been closed, their excuse is that anti-money laundering (AML) regulations prevent them from moving the funds, effectively holding your money hostage.
This is one of the worst scam companies out there. If you have money with them, your only options are to attempt to retrieve it or to file a lawsuit, as you won’t get it back any other way.
In my experience, it is a complete and total scam. You will regret it if you trust these people with your information and bank account. Beware!
Thank you for the comment. Can you share a bit more about your experience? Would be interested to hear more.
Bright money is a total rip off and taking money via ACH debit out of your checking account without your authorization for membership is wrong and should be illegal. This business could have a lawsuit against them for this. This business is very bad news; don’t give your banking information to them as they will abuse it and take your money. Maybe if you have an income of about $5000 a month and need help, it would be different. Not like me with about half that income.