NerdWallet, Inc. (Nasdaq: NRDS), a platform that provides financial guidance to consumers and small and mid-sized businesses (SMBs), announced the launch of its first financial product for consumers—NerdUp by NerdWallet—a secured credit card designed to help users build and improve their credit responsibly.
NerdWallet identified a major gap in the market “that needed to be addressed: Too many Americans are denied access to build and improve their credit, often because of typical secured card terms, such as annual fees, high minimum deposits, and hard credit checks.”
According to an October NerdWallet survey “conducted by The Harris Poll, nearly one-fourth of Americans (23%) say a lack of credit or bad credit prevents them from reaching their financial goals.”
Approximately 43% say their credit score “has negatively impacted them in the past, according to a September NerdWallet survey conducted by The Harris Poll.”
Lack of access to credit “prevents many Americans from buying and renting a home, buying or leasing a vehicle, saving for retirement, and furthering their education.”
The NerdUp secured credit card, “offered in partnership with Bond, is a free card that is uniquely designed to expand access for consumers who want to build their credit history—combining key features to remove the barriers typically found with traditional secured credit cards.”
With NerdUp, there is no hard credit check, “meaning many consumers can finally qualify for a card. In fact, the national average approval rate for credit cards is approximately 78%—with NerdUp nearly all U.S. adults can qualify.”
No annual or monthly fees—a rare feature for cards that don’t require a hard credit check.
With a low, flexible minimum deposit of $100 (compared to the industry standard of $200-$300 minimums), NerdUp is significantly “lowering the barrier to entry.”
Users earn 1% cash back on purchases, which is “automatically added to their deposit account—an uncommon feature that can boost users’ credit limits and enhance their buying power.”
The average interest rate on credit cards is now “well over 20%, while NerdUp offers a 0% interest rate as users pay off their balance each month.”
With NerdUp, a user’s free credit score is readily available “in their NerdWallet dashboard, along with access to tips and insights through their NerdWallet account.”
By providing this product, NerdWallet aims “to unlock opportunities for both consumers and partners.”
Leveraging its organic reach, NerdWallet intends “to guide consumers on good credit practices through NerdUp’s educational journey, with the goal of helping them to improve their credit scores.”