Tandem’s new credit card targets people who have non-existent credit histories – TechCrunch

With its regulatory woes at the back of it — and the acqui-hire of fintech startup Pariti — Tandem‘s product roadmap seems to be choosing up tempo.

The challenger financial institution based by way of Ricky Knox has introduced its 2nd credit card lately, this time focused on people within the U.Ok. who have but to increase a credit historical past in any respect. Credit playing cards are already some of the efficient tactics of making improvements to your credit ranking (presuming you might be authorized for one and all the time pay off on time, after all) and it sort of feels that Tandem desires a work of that motion.

Dubbed the “Journey Card,” Tandem says the new credit card is “a way for those who haven’t had credit before to build up a strong credit profile”. The upstart financial institution says it’s tapping right into a local weather the place people are realising the significance of credit rankings for construction a greater long run and the way very important a tight credit ranking is when eliminating additional credit equivalent to a automobile mortgage, loan and different longer-term monetary merchandise.

However, even though the new Journey Card stocks the similar low FX charges when spending out of the country, there are some key variations in comparison to the unique Tandem Cashback Card. These come with no money again, for starters, and what seems to be a better APR in popularity of the upper chance Tandem is taking up.

With that mentioned, each playing cards combine with the Tandem cell banking app, which acts as a Personal Finance Manager (PFM), together with letting you combination your non-Tandem checking account knowledge from different financial institution accounts or credit playing cards it’s possible you’ll have. Very not too long ago the app has launched a plethora of updates (together with virtual statements, ultimately!), and those come with some helpful budgeting gear, which sits neatly along a credit card designed that will help you construct your credit ranking.

Meanwhile, it’s changing into clearer that Tandem sees shopper credit as its “attack vector” within the shopper banking house, as apposed to providing a present account or pre-paid/debit card, even though I wouldn’t be stunned to look the challenger financial institution cross there in the end. It already gives a fixed-saver account, in spite of everything.

Says Ricky Knox, CEO of Tandem: “The integration of credit products into our app is a game-changer for the industry. Our competitors have launched some great pre-loaded and debit cards, but we will own credit in this space”.

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