The amount of adults in the U.S. with a low credit score or no credit at all is larger than one might think. According to the CFPB, approximately 26 million U.S. adults are “credit invisible,” defined as those without a credit history, and another 19 million have no credit score due to a thin-file or out-of-date information.
For those with a credit score, a report published in April 2021 showed that 15.5% of adults in the U.S. have a FICO score between 300 and 599. A poor credit history or credit invisibility limits access to better interest-rate loans and credit products.
In an effort to address the underserved and credit invisible market, Super—formerly Snapcommerce—recently launched the SuperCash card issued by MRV Banks. Consumers will fund the card using a linked bank account, which will then allow them to earn 10% cashback rewards on purchases at SuperTravel, 5% on SuperShop, and 2% wherever else that Mastercard is accepted.
Similar to other credit-builder cards, it does not require a credit check, and the company will report payment behavior to the bureaus in order to help customers build their credit history. The company has accompanied the release of the product with a new consumer report examining credit access and the impact it has on consumers.
The card will be a new entry into a competitive market including fintechs like Extra, Sequin, Grain & Zoro, all who offer similar solutions aimed at improving credit access.
Overview by Ben Danner, Research Analyst at Mercator Advisory Group.