Credit Cards
Finance Site NerdWallet Launches Its Own Credit Card
The personal finance site NerdWallet has announced the launch of its own branded credit card.
About the card:
This week, NerdWallet officially launched their NerdUp by NerdWallet credit card. Created in partnership with the Bond and issued by Evolve Bank & Trust, the NerdUp card is a secured credit card that will help customers build and establish credit. However, unlike many secured credit products, this card will also earn rewards.
To get started with the NerdUp card, there are no hard credit inquires and the card doesn’t carry any annual or monthly fees. Once approved, customers can make their initial deposit of as little as $100 (with a maximum of $10,000). With the product being a secured card, the deposit amount will then serve as the cardholder’s credit limit. Customers will also be able to make transfers in and out of their deposit by using a Plaid-connected account or bank transfer.
With the NerdUp card, users can earn 1% cashback on all purchases. These rewards will be automatically added to cardholders’ deposit accounts. This means that, as they earn rewards, they’ll also be growing their credit limit.
What they’re saying:
Explaining the decision to launch a secured credit card, NerdWallet CEO and co-founder Tim Chen said, “We don’t strive to offer our own financial products, but in this case we saw an opportunity to address a gap in the market. With NerdUp, we believe we can create a win-win-win for consumers, traditional card issuers, and NerdWallet.”
Chen continued, “By leveraging our existing distribution channels to reduce costs, we are uniquely positioned to design and offer a product that passes lower costs on to consumers, with a secured card that requires a low minimum deposit, no annual fees, and no credit check while also offering cash back rewards, helping consumers build good credit behavior and unlock new credit opportunities.”
Additionally, Bond co-founder and CEO Roy Ng said of partnering with the site on the project, “We’re excited to be working with NerdWallet to provide NerdUp. We founded Bond to democratize access to financial services and now together with our parent company FIS, we are excited to partner with NerdWallet as they help consumers build their credit history and improve their financial health.”
My thoughts:
As Chen basically admits, it is a bit odd for a site that recommends financial products to customers to then create its own offering. However, in regards to the NerdUp card, I think I’m willing to give them a pass because the card itself does seem like something that could help consumers. Building credit has long been a catch-22 — and so having a secured card that doesn’t charge annual or monthly fees, offers a flexible deposit option, and even earns rewards seems like a slam dunk.
So, while I might raise more of an eyebrow if NerdWallet tried to compete with its own premium travel card or the like, I think the NerdUp secured credit card sounds like a potential winner for those looking to build or establish credit.
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