Personal finance startup Truebill, which offers tools to help people manage their finances, is launching a credit card in early 2022.
Truecard is designed to help users raise their credit scores.
“What is a credit card that actually helps people? It would give them control of their transactions and it would help them stay out of debt,” Yahya Mokhtarzada, co-founder and chief revenue officer for Truebill, said in an interview with Policygenius.
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Truecard’s features include SmartPay, which moves cash from your checking account to your Truecard balance as frequently as every day to keep your credit utilization low. A low credit utilization is key to a good credit score.
The card also allows you to block specific merchants from charging you. Mokhtarzada says Truebill relies on its mountain of transactional data to help stop unwanted recurring charges.
“The reason other people haven’t done it is you really need to spend years building out this recurring charge recognition engine,” he says.
In addition, Truecard will offer up to 5% cash back with more than 14,000 brands.
The idea behind Truecard
Typically, credit card companies earn money by charging interest to cardholders who maintain a balance. For Truebill, this credit card is part of a suite of products that help people manage their money. The card will initially be available only to users of Truebill Premium, which includes tools for bill management, budgeting, and saving, at a cost of $3 to $12 a month (users are allowed to choose their price).
Truebill says it is making the card available to people who might not qualify for other credit cards based on their credit scores, by taking into account other factors, like whether they have a recurring paycheck, and how high their account balances are.
“People who recognize the importance of building credit but don’t want to get into debt will see the appeal of this card,” Mokhtarzada says.
Truecard is set for an early 2022 launch. Prospective users can sign up for a waitlist on the Truebill website. The first 1,000 approvals will get a metal version of the card.
How to manage your credit score
While Truecard can help automate some partsaspects of credit management, there are things you can do on your own to maintain a healthy score. The biggest aspect is payment history, making up 35% of your FICO Score (one of the most commonly used credit scores). Making payments on time is the best way to keep up with this part of your score.
Truecard’s Smartpay feature is aimed at keeping your credit utilization low. This is the second-biggest part of your credit score, but you don’t need a special tool to keep your credit utilization low. Just make sure you’re using too much credit — a budget can help — and paying off balances regularly.
Want to lift your credit score even higher? Read our guide to achieving the perfect credit score.