FinTech Prosper Introduces Credit-Building Card

For years, FinTechs have been disrupting the credit industry. From websites like Credit Karma making it easier for consumers to understand their credit reports to various platforms looking beyond credit scores and utilizing alternative algorithms to determine creditworthiness, there are now several credit-building opportunities available to Americans that weren’t there previously. Now, the marketplace lending platform Prosper has announced the launch of a new and interesting credit card product.

The Prosper Card is an interesting cross between a traditional credit card, a secured credit card, and a debit card. For one, although it helps build credit like a secured card, there is no security deposit required. Meanwhile, one unique element is that cardholders will be able to take advantage of no-fee ATM cash advances (although third-party ATM fees may apply). Plus, in addition to these core credit card features, Prosper card customers will also be able to access educational courses and resources. Since Prosper is not a bank, the card will be issued by Coastal Community Bank.

According to their site, it will offer credit limits between $500 and $3,000. Furthermore, they note that customers will automatically be reviewed for limit increases. While the card will waive the annual fee for the first year if customers opt into AutoPay, it will typically cost $39 per year. Speaking of AutoPay, Prosper cardholders will be able to select their own billing due date.

Announcing the card and the intent behind it, Prosper Marketplace CEO David Kimball explained, “Consumers working to build their credit profile have historically found it difficult to find an attractive entry point and are often forced to rely on costly alternatives. With the Prosper Card, people get access to the affordable credit they need when they need it, as well as tools and resources to help them stay on track with their personal finances.”

Offering a bit of history on the company, Kimball added, “Since launching in 2006, our platform has facilitated $20 billion of affordable credit solutions for more than a million consumers across personal loans and home equity lines of credit, and we are excited to reach even more people with our credit card product.”

Despite lacking flashy rewards or benefits, the Prosper Card could be among the most intriguing FinTech credit card offerings so far. In particular, advertising ATM withdrawals for a credit card is something rarely (if ever) seen, but makes a lot of sense given the core market for the card. With an annual fee of just $39 (after the first year), the Prosper Card could well end up joining the growing list of interesting options for those looking to build their credit.

Author

Jonathan Dyer

I'm a small town guy living in Los Angeles looking to make solid financial decisions. I write for a number of finance websites, including HuffingtonPost and Business2Community. I founded DyerNews.com in 2015 to focus on personal finance and the emerging FinTech markets.

Other Articles by Jonathan Dyer

Credit Bureaus Once Again Extend Free Weekly Credit Reports

An offer that was introduced at the beginning of the pandemic has once again been extended. This week, the three major credit bureaus in the United States — Equifax, Experian, and TransUnion — announced that they'd be continuing their free weekly credit report program for consumers. Now, the feature will be valid until the end of 2023. Prior to the pandemic, consumers were entitled to download a copy of their...

Marriott Bonvoy Unveils New Cobranded Cards From Amex, Chase

In a much-expected move, Marriott Bonvoy has announced the launch of two new cards that will join their cobranded line up. These cards are the Marriott Bonvoy Bevy American Express card and the Marriott Bonvoy Bountiful Card from Chase. Both the Bevy and Bountiful cards earn 6x Marriott Bonvoy Points on purchases at participating Marriott Bonvoy properties, 4x points on purchases at restaurants worldwide as well as at U.S. supermarkets (up...

Small Business Banking App Lili Introduces Lili Academy

Oftentimes, when people think of the "entrepreneur spirit," they assume it means striking out completely on your own. While setting your own course and working for yourself can be key reasons why individuals elect to start a small business, the truth is that there's no shame in seeking some help. Luckily, there are now a number of free resources entrepreneurs can utilize to help teach them important business topics and...