SAN FRANCISCO, Calif.: (November 17, 2021) — Financial wellness platform Credit Sesame today launched the general availability of its new credit builder banking technology, an all-in-one bank account that allows consumers to build their credit with their money and debit card purchases.1 With the new AI-backed Sesame Cash account, consumers can easily establish credit and grow it by making everyday purchases, such as groceries or subscription services, ultimately helping to close the credit chasm and create broader financial inclusion for the 45 million Americans who are invisible to the credit system.
Since its beta launch, more than 8,000 Credit Sesame customers have started using the credit builder technology. Once customers allocate a portion of their Sesame Cash funds to credit building, a trade line of credit of equal amount is reported to the three credit bureaus, which will establish credit for them and can have an immediate positive impact on a customer’s credit score. Early users increased their score by an average of 35 points, and some have increased their score by more than 120 points. The new Sesame Cash is particularly beneficial for those with a thin credit file who have previously struggled to build credit with traditional loans. In its beta stage, over 90% of Credit Sesame customers with a thin credit file (scores between 0 and 300) established an average score of 607 within 30 days of using credit builder banking. A credit building service like this can be life changing — opening new doors such as lower interest rates on auto loans, qualifying for a mortgage to buy a home, or renting in their neighborhood of choice.
“Coming from a family of immigrants, I understand how challenging access and education around credit can be for those who fall outside of the system,” said Shazia Virji, GM, Credit Services at Credit Sesame. “By creating the opportunity to build credit through debit, Credit Sesame is increasing financial inclusion for marginalized groups by setting them on a path to build credit and take hold of their financial futures, which can open new and better opportunities for individuals and their families.”
Credit Sesame’s credit builder banking service is a direct response to consumer behavior and need in the market. A recent Credit Sesame survey found that 40% of credit invisibles would like to be able to use debit purchases to build credit. Those interested can create a free Sesame Cash account online, and the company will report the cash consumers have set aside for credit building, along with aggregated purchases, utilization, and on-time payments to major credit bureaus, establishing a baseline of credit and fast-tracking good behavior into building a better credit score. Active Sesame Cash users also get free daily credit score refreshes2 so consumers can closely monitor their progress and cash rewards3 when their credit score increases.
Additional new features include:
- With Sesame Cash, users can allocate all or a portion of their funds to credit building, which is then reported to all three credit bureaus establishing a line of credit for the consumer and their credit report;
- AI-backed technology that monitors and manages the user’s transactions with their Sesame Cash debit card for optimal source of funds and credit utilization in order to maximize credit growth and savings;
- An all-in-one platform that provides education, tools and optional opt-in for auto payment of credit usage to help consumers develop good credit habits and the opportunity to build positive payment history.
“Your income and money matter for your credit and credit building, especially if you use debit for purchases, and we need a more inclusive and accessible credit system,” said Adrian Nazari, CEO of Credit Sesame. “Now with our credit builder technology, we do both. Credit Sesame makes it easy for consumers to add their money, including their income and everyday purchases to their credit report and history with a click of a few buttons and get the credit they deserve. We’re proud to lead the way in offering inclusion and better credit to consumers with no extra fees and no separate card — only better credit with debit. This changes everything.”
About Credit Sesame
Credit Sesame is a financial wellness platform, leveraging the latest technology, AI and analytics to help consumers achieve better financial health and stability and create better opportunities for themselves and their families. Credit Sesame has helped millions of consumers improve their credit scores, increase their approval odds, lower their cost of credit and save money. Strong credit health leads to better financial health and stability, and with Sesame Cash, Credit Sesame helps accelerate consumers’ credit and financial wellness in one place. Credit Sesame is funded by leading institutional and strategic investors. It currently operates in the U.S. and Canada. For more information on Credit Sesame, visit www.creditsesame.com and follow on Facebook, Twitter and LinkedIn.
1 Sesame Cash is a prepaid debit card issued by Community Federal Savings Bank (CFSB). Building credit with Sesame Cash requires you to also open a virtual secured credit card with CFSB that is reported to the credit bureaus. Use money from your Sesame Cash account to create a virtual secured credit card. Your debit card purchases are then added up to create a balance on your virtual secured credit card. As you make these purchases, an amount equal to the balance on your virtual secured credit card is also set aside in your Sesame Cash account to ensure you can make timely payments to pay off the balance on your virtual secured credit card at the end of each month, allowing you to build a positive payment history. Credit Sesame does not guarantee credit score improvement. Any predicted credit improvement from the use of your virtual secured credit card assumes that you will maintain healthy credit habits, including paying bills on time, keeping credit balances low, avoiding unnecessary inquiries, appropriate financial planning, and more.
2 This is a limited time offer. To be eligible for daily credit score refreshes, a minimum deposit, every 30 days, must be made into your Sesame Cash account. Daily refreshes will appear within 24-48 hours of deposit. Please review the full program terms for more details, including the minimum deposit amount for this program term.
3 This is a limited time offer. To be eligible for cash rewards, a minimum deposit, every 30 days, must be made into your Sesame Cash account. Rewards earnings are available for credit score improvements of ten points or more within a 30-day reward cycle. Improvements are calculated from your baseline credit score, as determined by Credit Sesame. Please review the full program terms for more details, including the minimum deposit amount for this program term.