Extra, the first debit card that builds credit and earns rewards, announced the results of proprietary credit score analysis which found that over the course of one-year, Extra card members that practiced good credit habits while successfully using the product as recommended, experienced an average overall credit score increase of 48 points and were twice as likely to get approved for an auto loan or a credit card.
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The research, which included a comparison of more than 10,000 users separated by extra card holders and a random US consumer sample, was conducted by Brandata using data from Experian. The study is the latest in Extra’s ongoing research into how cardholders can grow their credit scores, gain access to additional credit products and become better overall credit users.
“We seem to be in an era now where tech-bro negligence is at an all time high, which was one of the main reasons why conducting a study like this and providing proof points for Extra’s first of its kind product is more important than ever,” said Cyrus Summerlin, Co-Founder & Chief Brand Officer of Extra. “As an uncertain economy continues to affect customers, I would love to see a reset in fintech startup culture that celebrates impact made, more than just money raised. Let’s set the bar for merit a little higher, that would be better for everyone, especially consumers.”
“What I really respect and appreciate about Extra is how the company prioritized research, product development, and customer feedback before all else. It’s something that you don’t see in the fintech space often enough,” said rapper Nas, an investor in Extra.
Key Cardholder Behavior Boosts Credit Scores
Among other findings, the study revealed the behaviors that allowed cardholders to experience the best credit rebuilding results from Extra.
Successful Extra cardholders use the product as recommended; have no 30-180 day delinquencies reported in the last 6 months of membership; have no trade lines with a maxed out balance ratio >= 100 in the last 3 months of membership; and started their Extra membership with a credit score of 650 or less.
Those who began their Extra journey with a credit score of 500 or less saw additional benefits, with credit scores raised an average of 99+.
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Extra Cardholders Twice As Likely to Achieve New Credit Goals
Compared with average consumers, Extra cardholders were more than 2x as likely to take out an auto loan or lease during their Extra Membership (26% of Extra members vs. 12% average consumer), nearly 3x more likely to take out a mortgage (11% vs. 4%), and 1.5x more likely to open a credit card (63% vs. 43%).
Despite opening more accounts, Extra cardholders are less likely to exhibit negative credit outcomes than average consumers.
Not only are Extra cardholders more likely to have opened more (and a majority) of their accounts in the past year, they also are more likely to demonstrate positive credit behavior. 77% of successful Extra cardholders had the majority (51% or more) of their trades never delinquent or derogatory, compared to just 45% of those in the random sample cohort. Similarly, 90% of successful Extra cardholders had zero trades where the payment behavior or history is worse in the most recent six months, compared to the six months before that. This cohort also had zero total trades presently 30 days delinquent reported in the last six months.
Extra is committed to bringing clarity and transparency to an industry historically defined by fine print, and to continue innovating ways for consumers to build credit smartly and safely.
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