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WSJ Your Money Briefing

How Credit-Builder Cards Let Customers Boost Their Score Without Debt

WSJ Your Money Briefing

The Wall Street Journal

News, Business News

3.81.6K Ratings

🗓️ 30 August 2024

⏱️ 8 minutes

🧾️ Download transcript

Summary

Credit-builder cards from companies like Chime Financial and Credit Sesame are promising customers a higher credit score without ever borrowing or paying back any money. Wall Street Journal reporter Gina Heeb joins host J.R. Whalen to discuss how these cards work. Sign up for the WSJ's free Markets A.M. newsletter. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

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Here's your money briefing for Friday, August 30th. I'm J.R. Whelan for the Wall Street Journal.

0:26.4

Paying your credit card bills on time can boost your credit score, which often is a key to whether

0:31.0

you get a loan or even if a landlord will rent you an

0:33.8

apartment. But what if there was an easier way to raise your score? That's where

0:38.4

FinTech products called Credit Builder cards come in. The big twist with these kinds of cards is that the

0:44.7

customer does not actually borrow or pay any money back like with a normal

0:49.2

credit card. They actually operate a lot like a debit card where a customer just buys something and on the back end it's reflected as credit

0:57.8

We'll talk to Wall Street Journal reporter Gina Heave after the break.

1:12.0

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...

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