NerdWallet launches NerdUp, its first credit card

NerdUp by NerdWallet is a credit card that reportedly seeks to help users build and improve their credit in a responsible manner.

As per the official press release, the platform that provides financial guidance to consumers and small and mid-sized businesses (SMBs) decided to launch a product of this kind as a response to a market pain point. According to a survey conducted by The Harris Poll on behalf of NerdWallet, around 23% of US citizens argue that a lack of credit or bad credit hinders their ability to reach their financial goals. Moreover, the same survey discovered that 43% of respondents have had their credit scores impact them negatively in the past.

Among the key aspects affected by lack of credit access for Americans are home ownership, vehicle ownership, retirement savings, and education.

What features does the new credit card include?

The NerdUp secured credit card – offered as a result of a joint venture with Bond – is designed to expand access for consumers seeking to build credit history.

Moreover, the card does not require a hard credit check – which is expected to enable more consumers to qualify for it. Even more to this point, whilst the national average approval rate for credit cards is approximately 78%, NerdUp reportedly makes it possible for almost all US adults to qualify.

The card features no annual or monthly fees, it has a flexible minimum deposit of USD 100, it offers a 0% interest rate – as users pay off their balance on a monthly basis – and users earn one per cent cash back on purchases – which adds automatically to their deposit account. Additionally, users can easily access their free credit score and receive personalised tips and insights through their NerdWallet account dashboard.

As stated in the official release, as users improve their credit and they become eligible for a wider range of products and services, NerdWallet aims to connect them with offerings from their partners, who can then access a larger base of qualified consumers. Through this strategy, NerdWallet aims to create a financial ecosystem that caters to the financial needs of individuals and small businesses.