FinTech Prosper Introduces Credit-Building Card
For years, FinTechs have been disrupting the credit industry. From websites like Credit Karma making it easier for consumers to understand their credit reports to various platforms looking beyond credit scores and utilizing alternative algorithms to determine creditworthiness, there are now several credit-building opportunities available to Americans that weren’t there previously. Now, the marketplace lending platform Prosper has announced the launch of a new and interesting credit card product.
The Prosper Card is an interesting cross between a traditional credit card, a secured credit card, and a debit card. For one, although it helps build credit like a secured card, there is no security deposit required. Meanwhile, one unique element is that cardholders will be able to take advantage of no-fee ATM cash advances (although third-party ATM fees may apply). Plus, in addition to these core credit card features, Prosper card customers will also be able to access educational courses and resources. Since Prosper is not a bank, the card will be issued by Coastal Community Bank.
According to their site, it will offer credit limits between $500 and $3,000. Furthermore, they note that customers will automatically be reviewed for limit increases. While the card will waive the annual fee for the first year if customers opt into AutoPay, it will typically cost $39 per year. Speaking of AutoPay, Prosper cardholders will be able to select their own billing due date.
Announcing the card and the intent behind it, Prosper Marketplace CEO David Kimball explained, “Consumers working to build their credit profile have historically found it difficult to find an attractive entry point and are often forced to rely on costly alternatives. With the Prosper Card, people get access to the affordable credit they need when they need it, as well as tools and resources to help them stay on track with their personal finances.”
Offering a bit of history on the company, Kimball added, “Since launching in 2006, our platform has facilitated $20 billion of affordable credit solutions for more than a million consumers across personal loans and home equity lines of credit, and we are excited to reach even more people with our credit card product.”
Despite lacking flashy rewards or benefits, the Prosper Card could be among the most intriguing FinTech credit card offerings so far. In particular, advertising ATM withdrawals for a credit card is something rarely (if ever) seen, but makes a lot of sense given the core market for the card. With an annual fee of just $39 (after the first year), the Prosper Card could well end up joining the growing list of interesting options for those looking to build their credit.