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October 3, 2019

Self launches credit card for underbanked Americans

American fintech company Self has rolled out a new Visa-branded credit card for people with poor or no credit history.

Dubbed Self Visa Credit Card, the new offering leverages a unique funding model to offer users with a line of credit without requiring making a direct investment or providing a credit check.

To check the customers’ eligibility, Self uses its instalment loan programme, known as Credit Builder Account, that allows users to build a positive payment history.

Interested customers must have a minimum of $100 in savings progress in the Self Credit Builder Account to apply for the card.

Self CEO James Garvey said: “The traditional secured card model, while well-intentioned, relies on the consumer having equity to put down before they can secure a card, sometimes starting at $500.

“For a consumer who wants to build credit and might not have that capital on hand, such requirements can be prohibitive.

“With the Self Visa Credit Card, we’ve rethought the whole secured card model and come up with a novel approach that allows people to build credit without a lot of money up front or the need for a hard credit pull.

“Our model resembles a savings payment plan, with cumulative credit-building benefits because account holders are also building credit while obtaining access to a secured card.”

Issued by Lead Bank, the Self Visa credit card is accepted across the US at locations where Visa credit cards are accepted.

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