Green Dot has unveiled a credit card to allow people with poor credit scores or no credit history to build up a financial record, the company said.
California-based Green Dot, the largest provider of reloadable prepaid debit cards, said its secured Visa card “is designed to help people with no prior credit history or those with poor credit scores build a positive credit history,” according to a statement released on Thursday.
“The customer’s payment performance will be reported to the three major credit bureaus, which, with good payment performance, can help cardholders build a better credit history over time,” Green Dot said.
The company is trying to tap into the market of what it said are “108 million Americans do not have credit scores or have low scores that stand in the way of accessing affordable credit.”
According to the website for the cards, a minimum security deposit of $200 must be made and the amount of credit available on a card is equal to the amount of each person’s deposit. There’s a $39 annual fee and annual interest rate of 19.99%.
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