A credit card for US residents with no large upfront deposits or fees, offering a true starting point for credit establishment and creation
For the more than 50 million Americans seeking to establish credit, there’s a frustrating paradox: without established credit, it is almost impossible to get access to credit products; and without access to credit products, one cannot establish a credit track record. Alternatively, those without credit history must set aside hundreds of dollars in security deposits to get a credit card money that could be used for other essential needs. Augie is introducing a fundamentally different approach, enabling consumers to build credit on their own terms without setting aside large security deposits for extended periods, paying card fees, or incurring interest charges.
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“The credit card industry hasn’t meaningfully evolved since its inception, even though how people manage money is completely different,” said Amit Thakur, CEO at Augie. “Even secured credit cards that claim no security deposit necessary can’t actually be used without one. We’ve created something entirely new a secured credit card that lets consumers build credit history on their own terms, aligned with modern financial realities. This flexibility is invaluable for the part of the population that needs this the most.”
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Unlike traditional secured credit cards that require upfront large deposits that cannot be used freely and that are locked-in for the life of the card, Augie has reimagined the model from the ground up. Through proprietary technology that analyzes existing bank account activity, Augie provides a credit card that charges no card fees and that enables users to build credit through their recurring bill payments – all this without requiring setting aside large security deposits or risking overspending.
The card is offered through entities and relationships that users have a relationship with employers who see Augie as a powerful new addition to employee benefits packages, allowing companies to support their workforce’s financial wellbeing at no cost, community banks, debt management organizations, and referring friends and family. Getting started is straightforward: consumers download the Augie app from their preferred app store and request an invite code from their employers, support groups or friends and family who already are on the Augie platform.
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After completing a standard identity verification process and connecting their existing U.S. bank account, Augie analyzes a consumer’s transaction history to responsibly grant credit specifically for recurring payments like streaming services, phone bills, and other subscription-based expenses. There’s a financial education and responsibility component in that consumers are never allowed to borrow more than is in their bank account, and are sent reminders when the payment of a subscription-based bill is imminent.
“With Augie, we will flip the script on how building a credit profile using cards traditionally works. Instead of making people set aside large amounts of money they can’t use for the life of the card, or charging them fees just to build credit, we looked at what they’re already doing – paying their monthly bills – and turned that into a way to establish credit. There is no credit check required to get the card so we feel even people who have been declined by other banks or lenders can benefit from Augie. It’s a completely new approach that puts the consumer’s financial health first,” continues Thakur.
Source – PR Newswire
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