Kredit Academy, the world’s ‘first’ credit card for the next generation emphasizing education over spend, won $1 million in the 43North start up competition. 43North is a startup program sponsored by Empire State Development that invests $5M annually into seed-stage startups. The startup also received the People’s Choice Award for another $25,000.
“We are very excited and appreciate 43North’s recognition of the need for Kredit Academy and the validity of our platform,” Kredit Academy Founder Evan Leaphart explained. “We founded Kiddie Kredit to help kids understand credit in a way that is relevant to them – through their chores – before they are even old enough to access credit. Kredit Academy is a natural extension of that to teens and beyond.”
Kredit Academy works with credit unions and community banks to issue a white-labeled credit card and digital rewards platform designed to help teens and young adults:
- Form healthy financial habits
- Learn positive credit usage
- Boost their financial literacy
Individuals are issued a secured credit card, with those under 18 having their card co-managed by a parent or guardian, providing a safety net while engaging in real-world experience in credit management. The funds used to establish the credit line in Kredit Academy are held in a high yield savings account, allowing the money to grow over time, and promoting a culture of saving alongside responsible credit usage. The company also has an AI-driven rewards program that issues rewards to users not just based off of spend like traditional rewards programs, but how much they learn in the process.
“Early credit education is critical because credit affects a person’s access to loans, cost of credit and ability to build wealth,” Kredit Academy COO & Head of Education Mike Gross said. “Once you know how to use it effectively, the world can open up for you. If someone doesn’t have to repeat the mistakes we made when we were younger, that’s success for us.”
To learn more, visit www.KreditAcademy.com, or for their preteen solution check out www.KiddieKredit.com.
