Credit Sesame is introducing a new credit-building feature that allows users to boost their credit scores and improve financial literacy over time.
When using this debit card, Credit Sesame automatically allocates an equivalent sum of money within the user's Sesame Cash account. Subsequently, these allocated funds are used to settle the card's balance at the end of each month. The company then proceeds to report these timely payments to the three prominent credit bureaus, namely Experian, Equifax, and TransUnion, to demonstrate that the user is reliable and financially responsible.
Notably, Credit Sesame does not perform hard credit checks, does not charge interest, and does not require a security deposit. Users must pay a $9.99 monthly subscription fee to use Credit Sesame, and a $3 inactivity fee is incurred if the service isn't used within the first 30 days post-sign-up.
Credit-Building Finance Features
Credit Sesame Debuts the Innovative Card and Credit Analysis Tool
Trend Themes
1. Credit-building Features - Credit Sesame introduces a new credit-building feature that automatically allocates funds to settle a debit card balance and reports timely payments to credit bureaus.
2. Financial Literacy Improvement - Credit Sesame's credit-building feature helps users improve financial literacy and boost credit scores over time.
3. Subscription-based Credit Services - Credit Sesame charges a monthly subscription fee for its credit-building tool, offering an alternative approach to credit management and improvement.
Industry Implications
1. Financial Technology - The credit-building feature by Credit Sesame disrupts the financial technology industry by providing an innovative debit card and credit analysis tool.
2. Credit Reporting - Credit Sesame's reporting of timely payments to credit bureaus disrupts the credit reporting industry, offering users a convenient way to demonstrate financial responsibility.
3. Consumer Finance - Credit Sesame's credit-building feature disrupts the consumer finance industry by enabling users to improve credit scores and financial literacy without requiring a security deposit or charging interest.