Brands and FinTechs may help credit-challenged customers repair credit histories and raise FICO scores with the aid of Bond Financial Technologies’ new customized secured card solution.
embedded finance platform According to a press release, Bond is introducing a Credit Builder Card that will make it easier for FinTechs and other companies to provide their customers with a protected credit card.
The secured card solution was developed so that the brand could smoothly design it internally and adjust it to the demands of its business. It is issued by the bank that sponsors the bond, Evolve Bank & Trust, and is supported by the Mastercard network.
Nearly 35% of Americans, according to Bond CEO and Co-Founder Roy Ng, have subprime credit scores, which range from 580 to 669, or have insufficient or nonexistent credit files.
It’s not only a minuscule minority of people in this circumstance. A substantial section of the population is everyday impacted by this issue. Additionally, he said that millennials account for 40% of subprime ratings.
Secured credit cards, per the press release, may assist consumers in establishing credit histories, which may be crucial when applying for expensive loans like mortgages or auto loans.
Due to a cooperation between Bond and Bloom Credit, all transactions made using Bond’s Credit Builder Card will be reported to standard credit bureaus. The technique may be used by individuals to create and raise their FICO scores, which 90% of lenders use to evaluate a borrower’s creditworthiness and risk factors.
Sherri Haymond, executive vice president of Mastercard’s Digital Partnerships, asserts that “it’s critical to provide consumers and businesses with reliable, usable, and empowered payment solutions that meet their needs today and achieve their long-term objectives.”
