Millennial/Gen Z credit-builder beware: Compared with a more established credit card, an alternative card from a fintech is more likely to experience frequent changes to its terms and features.
Getting a first or second chance to build credit with a credit card has been easier in recent years because financial technology companies have created alternative options.
But while many of these relative newcomers can indeed help you build credit, it’s worth noting that the journey might sometimes be bumpy as the company behind the card continues to scale.All credit card companies, traditional and nontraditional, are allowed to make changes to your account terms, although depending on what exactly is changing, they must follow certain guidelines.
For example, a relatively new credit card company might rebrand, meaning any number of features may change. CreditStacks announced a namesake credit card in 2018, but by 2020, the company and card were going by the name Jasper, sending out redesigned cards and expanding the pool of applicants who might qualify. It later pivoted to being a cash-back card for people with good credit.Grow Credit launched a credit card in some states in 2019, eventually taking it nationwide in 2020.
Jamie Howard, an e-learning director based in Tennessee, was among those cardholders. He was told that he’d have to pay an $8 monthly charge or opt out and have his account closed. “A chronic problem with fintechs is the lack of human customer service,” Saunders says. “One of the ways they can make things more cheaply is by cutting out brick-and-mortar branches, cutting out live customer service, relying on chat and other automated or electronic channels. That works well until it doesn’t.”
Indonesia Berita Terbaru, Indonesia Berita utama
Similar News:Anda juga dapat membaca berita serupa dengan ini yang kami kumpulkan dari sumber berita lain.
Harriette Cole: I’m starting to believe the rumor about my exPlus: I want to read, but books cost money.
Baca lebih lajut »
US Representative Warren Davidson: 'CBDC Corrupts Money Into a Tool for Coercion' – Bitcoin News'CBDC corrupts money into a tool for coercion & control. Thankfully, there is no legal way to implement CBDC in America without legislation,' US Rep. Davidson stated.
Baca lebih lajut »
'Top dog in Asia': Nikkei's stellar rise starts drawing big moneyA tailwind behind Japanese stocks is strengthening as large foreign funds who have been avoiding the market for decades start to reach into pockets deep enough to take the Nikkei back to its 1989 peak.
Baca lebih lajut »
How to Make Money by Losing $300,000 a Year on Slot MachinesA new class of niche celebrities have turned the once-solitary experience of playing casino slot machines into a spectator sport with millions of viewers. “Line it up, buttercup.”
Baca lebih lajut »
The way the money flows is the difference between work and schoolAfter getting fired from one job and nearly canned from another, I finally learned the key difference between work and school
Baca lebih lajut »