Chime is rolling out a new credit card that helps users improve their credit scores - Business Insider

The card allows users to control how much they spend by transferring funds from a "Spending Account" to a "Credit Builder Secured Account," after which they can charge up to that amount. At the end of each month, Chime's "Safer Credit Builder" feature automatically pays off the credit card balance from the secured account on time, and then reports the payment to major credit bureaus, including TransUnion, Experian, and Equifax.

Results from the Credit Builder Card's yearlong beta-testing phase suggest that the card effectively raised users' credit and could be a potent customer acquisition tool. The neobank started testing Credit Builder in June 2019, and the service grew to reach more than 200,000 enrollees prior to its full launch.

Chime claims that during its test period, users increased their credit scores by an average of 30 points, citing data from TransUnion. It added that the offering helped 95% of members with no credit history establish a credit score for the first time.

The new offering could prove especially useful in bolstering Chime's value proposition among younger consumers, those with lower credit scores, and the underbanked. The Credit Builder Card can be positioned as a convenient and secure way for each of these demographics to address their credit issues, by either helping them establish a credit score for the first time or improve an underperforming score.

And helping these groups could generate a great deal of customer loyalty: Young consumers could make Credit Builder their first credit card and stick with Chime going forward. Similarly, Chime could become the main banking services provider for underbanked consumers looking to establish a credit history and get access to banking services.

Canada Canada Latest News, Canada Canada Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Inside the path to Dun & Bradstreet's $1.7 billion IPO - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web. Check out our article of a SoftBank company IPO tomorrow
Source: BusinessInsider - 🏆 729. / 51 Read more »

Inside Montenegro's Aman Sveti Stefan, where the rich vacation - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web. For each virus headline, two more virus headlines grow. COVID19 is like the mythical monster Hydra. i stayed here back in 2018, it is amazing and worth every penny!!! 🥰🥰
Source: BusinessInsider - 🏆 729. / 51 Read more »

Inside Chinese smartphone giant Vivo's 32-floor tower HQ - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web. They said they gonna built this in Delhi. They betrayed me. vivopakistan you should consider this as well & it's not impossible.
Source: BusinessInsider - 🏆 729. / 51 Read more »

Airbnb adds new rules for users under 25 to crack down on party houses - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web. You need to call them protests.. the virus 🦠 is immune to protests
Source: BusinessInsider - 🏆 729. / 51 Read more »

Depositing stimulus debit card money & paying expenses on rewards card - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web.
Source: BusinessInsider - 🏆 729. / 51 Read more »