Credit is an essential tool for building financial health and resilience. The problem with using an individual’s credit rating as a metric for financial trustworthiness is that the on-ramps to establishing credit are deeply flawed.
It is estimated between 45 and 60 million U.S. consumers are unable to access mainstream credit products. This eye-opening statistic makes it that much easier to understand why fintech companies are interested in making the problem of credit invisibility a priority in their product roadmaps. The challenge is that, unlike overdraft fees, it’s surprisingly difficult to build a good wedge product around the problem of credit invisibility.
Credit-Builder Products and Fintechs
Credit-builder products are financial products designed to help consumers establish and develop positive repayment data that can be reported back to the three credit bureaus.
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