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ClearCred: Transform your Credit Cards into Debit Cards
- Finnucane 3y agoSo, instead of paying your credit card directly from your bank, you let Frank hold on to the money? In Frank’s Bank?
- alenrozac 3y agoGuess so. And the "store away" account is likely in a money market fund where they either take all returns or a significant chunk of it. If the product is free, you're the product.
- frankdigiac 3y agoProduct will be subscription based (<$5) and you keep all the interest, which could pay off subscription depending on monthly spending. Too many fintech’s rely on percentage of volume and it’s not really reliable.
- Finnucane 3y agoPaying directly from my bank account is free. Why would I pay for that?
- frankdigiac 3y agoBecause it automatically stores-away money for each purchase. Some users enjoy the piece of mind of not having a bill at the end of month, and this provides the funds in order for that to happen. For me, I personally hate budgeting with credit cards and hate seeing my statement at the end of the month cause my checking balance is not accurate then. I would use a debit card more, but I get little protection and no benefits. This app may not be for you and that's okay!
- jaimehrubiks 3y agoI don't understand what it is for
- mobiuscog 3y agoI think... Each time you make a purchase on a credit card, you automatically add an amount for that purchase into the ClearCred 'savings' account. Then, when you need to pay the credit card amount before it's due (and incurs interest), you pay it from the ClearCred account. It seems to be a third-party instant savings account, with an app that keeps track of all the amounts and due-dates, in return for your information and likely a cut of the interest as others have alluded to. You could probably do the same with any other instant savings account and manually keeping track of purchase, without giving your information away. Equally, you could just not use a credit card.
- frankdigiac 3y agoFirst paragraph is spot on. But it’s a subscription based app less than $5 and the user keeps all the interest. We will never sell information, I hate that stuff. Our goal is to have people stick to the money they have and to stop overspending. Additionally, we want to give new credit card users a chance to get used to having a credit card. Credit cards are good, if you spend them like a debit card.