By Brands and FinTechs can help credit-challenged customers rebuild credit histories and improve FICO scores with a new, customized secured card offering by Bond Financial Technologies.
Embedded finance platform Bond is rolling out a Credit Builder Card that makes it easier for FinTechs and other companies to introduce a secured credit card to their customers, according to a press release on Thursday (Aug. 18).
Powered by the Mastercard network and issued by Bond sponsor bank Evolve Bank & Trust, the secured card product was developed to be seamlessly built in-house by the brand and customized to its company’s needs.
See also: FinTechs Build Critical Credit Capability With Secured Credit Cards
In an interview with PYMNTS earlier this month, Bond CEO and Co-founder Roy Ng said that close to 35% of Americans have subprime credit scores — between 580 to 669 — or credit files that are thin or nonexistent.
“We’re not talking about a small sliver of people here. This is a fairly large population facing this issue every day. On top of that, 40% of subprime scores are represented by millennials,” he said.
Secured credit cards can pave a path for consumers to develop a credit history, which can make a difference when it comes time to apply for big-ticket loan items like mortgages or car loans, according to the press release.
Read more: Embedded Solutions Tackle SMBs’ Trade Finance Challenges
Bond partnered with Bloom Credit and all payments paid with Bond’s Credit Builder Card will be reported to traditional credit agencies. The process can help people establish and build up their FICO scores, which are used by 90% of lenders to weigh someone’s creditworthiness and risk factors.
“Now more than ever, it’s critical to provide consumers and brands with trusted, accessible and empowering payment options that meet their needs today and achieve their future goals,” said Sherri Haymond, executive vice president, Digital Partnerships at Mastercard.
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