MOUNTAIN VIEW, Calif.—Credit Sesame has introduced a new solution the company says allows users to build a credit score through purchases on a Credit Sesame prepaid debit card by pairing it with a virtual credit card.
According to the company, users can set the amount they want to allocate toward building credit and Credit Sesame’s computers calculate the debit expenditures to match that amount and reports it to the credit bureaus through the virtual credit card.
“Credit Sesame is aiming at people who don’t have good credit scores, or perhaps any credit score at all: the credit invisible. That amounts to about 44 million Americans,” Forbes reported.
As Credit Sesame explains on its site, “As you make these purchases, an amount equal to the balance on your virtual secured credit card is also set aside in your Sesame Cash account to ensure you can make timely payments to pay off the balance on your virtual secured credit card at the end of each month.”
“We have innovated and brought two products together — a digital bank account and a secured card,” explained Miro Pavletic, general manager, head of global banking for Credit Sesame. “If you don’t have a credit profile you can get onto our platform, photograph your identification like a driver’s license or passport with your phone and we can create a digital account for you.”