NerdWallet Introduces Its First Consumer Credit Card

Published 4 months ago

The financial guidance platform, NerdWallet, Inc., has recently launched its first consumer financial product, NerdUp by NerdWallet, a secured credit card. This new product aims to aid users in building and improving their credit responsibly.

Addressing a Gap in the Market

NerdWallet spotted a significant deficiency in the market. Many Americans are unable to build and improve their credit due to restrictive secured card terms such as annual fees, high minimum deposits, and hard credit checks. An October survey by NerdWallet conducted by The Harris Poll revealed that nearly one-fourth of Americans (23%) state that a lack of credit or poor credit hinders them from achieving their financial goals.

Inability to access credit prevents many Americans from making key financial transactions such as buying and renting a home, buying or leasing a vehicle, saving for retirement, and furthering their education.

NerdUp: A New Way to Build Credit

In collaboration with Bond, NerdWallet is offering the NerdUp secured credit card. This free card is uniquely designed to expand access for consumers who want to build their credit history. It removes barriers typically associated with traditional secured credit cards.

NerdUp does not require a hard credit check, making it accessible to many consumers. It does not charge annual or monthly fees and requires a low, flexible minimum deposit of $100, significantly lowering the barrier to entry.

Users earn 1% cash back on purchases, which is automatically added to their deposit account, enhancing their credit limits and buying power. Unlike the average credit card interest rate which is now well over 20%, NerdUp offers a 0% interest rate as users pay off their balance each month.

A Win-Win-Win for Consumers, Card Issuers, and NerdWallet

NerdWallet CEO and Co-Founder, Tim Chen, believes that NerdUp can create a win-win-win for consumers, traditional card issuers, and NerdWallet. The company leverages its existing distribution channels to reduce costs, passing lower costs on to consumers with a secured card that requires a low minimum deposit, no annual fees, and no credit check while also offering cash back rewards.

By offering this product, NerdWallet aims to unlock opportunities for consumers and partners. As users improve their credit, they may qualify for more products and services. NerdWallet aims to connect them with offerings from their partners, expanding their base of eligible consumers.

About NerdWallet and Bond

NerdWallet’s mission is to provide clarity for all life’s financial decisions. They provide consumers with trustworthy and knowledgeable financial information to make smart money moves.

Bond, on the other hand, enables any company to become a fintech. It focuses on high-value-add products such as consumer and commercial charge cards.