Neu Releases Student-Focused Credit Card

Published 6 months ago

Neu, a company aiming to improve financial wellness among students, has launched a credit card tailored for young people. The Neu Card is designed to help students start building credit early without the fear of falling into debt.

The Neu Card: A Different Kind of Credit Card

Unlike other cards on the market, the Neu Card has no late fees and no compounding interest. It also offers a 1.25% cash back feature, a small monthly subscription fee, and a maximum spending limit of up to $1,000. The card has the highest approval rate for college students among all credit cards, aiming to democratize access to credit. The application process does not require co-signers or credit scores, and international students do not need a social security number.

Credit Card Fears Among Students

Neu collaborated with 3Gem, a market research company, to survey 1,000 students and 1,000 parents of students in college. The survey found that nearly half of students aged 18-24 do not have a credit card due to fears of debt or damaging their credit score. A lack of credit history can make basic tasks like renting an apartment or financing a car challenging for students and recent graduates. Nearly 60% of students who already had a credit card cited building their credit score as the main reason for applying.

A Purpose-Driven Team

Neu’s team, led by entrepreneur Abhishek Agarwal, previously created a similar solution for students in India called mPokket. The Neu Card is their effort to make credit more accessible and manageable for young people.

How to Apply

To apply for the Neu Card, students can download the Neu app from the Apple Store or Google Play. Applicants must be over the age of 18 and provide proof of legal residency in the U.S. Approved users can choose between a $4/month plan with a $200 fixed credit limit, or a $7/month plan with a max credit limit up to $1,000. Both options include no late fees, no interest charges, and 1.25% cash back on all purchases.

Future Plans for the Neu Card

Neu has plans to introduce additional features like increased cash backs and discounts at select retailers and restaurants near college campuses. The team at Neu has actively involved students in the card’s development process, from internships to in-depth research interviews. The company will continue to rely on student feedback through its ambassadors, the “Neu Friends,” who raise awareness of Neu within their college communities and provide direct insights.