Interest money

Credit Karma Money wants to be the best account to build your credit score

Credit Karma launches Credit Builder, a free, no-interest program that can help members with lower credit scores build credit while saving money

OAKLAND, Calif., January 20, 2022–(BUSINESS WIRE)–Credit Karma Money™, a single destination within Credit Karma for spending and saving1, today announced the launch of Credit Builder, a no-fee line of credit to help its more than 110 million members in the United States get credit and save money. At launch, Credit Builder will be available primarily to Credit Karma members in the United States with credit scores of 620 or lower, who are new to credit, or who need help building their credit. It’s the latest in a series of products launched by Credit Karma Money that aims to change consumers’ relationship with money and help them develop good financial behaviors, such as staying on top of their bills and spending on their own. means.

Credit Karma Money members who use Credit Builder, which is powered by the financial health platform SeedFi2, have an initial savings goal of $500, then choose how much they want to contribute to their goal on a weekly, bi-weekly, or monthly basis. Credit Builder keeps the amount borrowed in a locked savings account, through SeedFi, while members make regular payments, establishing a history of on-time payments. Members can track their progress over time, including number of payments made, amount saved, and total score improvement, all within the Credit Karma app. Credit Builder is free and does not charge monthly fees or APR.

“Credit Karma Money is a product for everyone, but it especially helps those with low credit scores or thin records who are otherwise excluded from the financial system,” said Poulomi Damany, Managing Director of Assets and Tax at Credit Karma. “Most consumers with lower credit scores don’t have the ability to prove to lenders that they can be a good borrower, making it harder to get approved for credit and making borrowing more expensive. That’s why we launched Credit Builder, in partnership with SeedFi.Together, we want to give these members a free, low-risk way to prove they can borrow responsibly, while helping them build their credit and to save money.

Behind the scenes, members who sign up for Credit Builder open a line of credit through SeedFi, which does not require credit mining. Then, once a member opens the account, they select the amount they want to save each pay period. Each payment made by the member is then reported to the credit bureaus by SeedFi. It demonstrates positive borrowing behavior by showing a pattern of regular on-time payments, which is one of the key factors in determining a person’s credit scores.

Once a member reaches their initial savings goal, they can choose to access that money or choose to continue saving. If for any reason a member is unable to continue making payments to their account, they can stop the plan free of charge and withdraw any money they may have saved during the period.

“Credit Karma Money challenges the status quo by providing purpose-built checking and savings accounts for people who don’t have perfect credit and don’t always have extra money to save each month” , said Neil McCarthy, partner. Director of Product Management at Credit Karma. “We’ve taken a step forward with Credit Builder. This product gives members a way to improve their credit and save money at the same time. That last part is huge when you consider that nearly half of Not every American has $400 in savings to cover an unforeseen emergency.Plus, members will be able to build their savings muscle by regularly putting money aside for savings, while working to improve their scores.

Credit Karma is an independent third party and is not a bank. The Credit Karma platform makes it easy to open and manage Spend and Save accounts offered by our banking partner MVB Bank, Inc., Member FDIC.

About Credit Karma

Founded in 2007 by Ken Lin, Credit Karma, an Intuit Company (Nasdaq: INTU), is a consumer technology company with more than 120 million members in the United States, United Kingdom and Canada, including nearly half of America’s millennials. Although best known for pioneering free credit scores, company members turn to Credit Karma for everything related to their financial goals, including identity monitoring, applying for cards credit checks, loan research (auto, home and personal), car insurance, savings accounts and now checks accounts through our banking partner, Member FDIC MVB Bank, Inc. – all for free. See how Credit Karma members are making financial progress on TikTok, Instagram, Facebook, and Twitter.

About Credit Karma Money™

Credit Karma Money is a new financial experience from Credit Karma, the personal finance platform already trusted by over 100 million Americans. Credit Karma Money Save accounts are free, interest-bearing savings accounts with no fees, no minimum openings and no pitfalls. Recently launched, Credit Karma Money Spend accounts are checking accounts with no hidden fees. with features like up to two days early access to paychecks and Instant Karma, which incentivizes good spending behavior by giving members a chance to get their money back when they spend the money they already have on their accounts. To open an account, visit CreditKarma.com/checking.

About SeedFi

Launched in 2019 by fintech veterans, SeedFi is on a mission to help people get credit, borrow money when they need it, and improve their financial future. Banking services and personal loans are provided by SeedFi’s banking partner, Cross River Bank, Member FDIC.

  1. Banking services for Credit Karma Money Spend and Save accounts are provided by MVB Bank, Inc., Member FDIC. Maximum balance and transfer limits apply per account, please see per account terms and disclosures for details. MVB Bank, Inc. is not affiliated with Cross River Bank, Member FDIC or SeedFi.

  2. Banking services and line of credit for Credit Builder provided by Cross River Bank, Member FDIC.

See the source version on businesswire.com: https://www.businesswire.com/news/home/20220120005408/en/

contacts

Emilie Donohue
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