Meet StellarFi, the app that builds your credit while paying your bills
StellarFi announced on Tuesday that it is now available to all consumers. The Credit Builder app makes your bill payments on your behalf, then reports the successful payment to the three major credit bureaus to help you build your credit. Eligible bill payments include rent payments, streaming subscriptions, utilities, and more.
StellarFi offers three different membership levels for users: $4.99 monthly subscription, $9.99 subscription, and $19.99 subscription. The middle tier allows consumers to add an unlimited number of bills that StellarFi will pay on their behalf. There are no other fees for users to worry about, the company said.
No credit check is required to create an account, just a valid bank account and social security number to verify your identity.
“[Bills] could be your use [payments]your rent, Netflix… And, what we do is we quickly analyze [the bills]and we create an account for you and issue a payment on your behalf and withdraw money from your linked bank account to reimburse us,” said Lamine Zarrad, CEO and Founder of Stellar. ZDNet.
Since StellarFi takes risks on behalf of the user, it is able to report the successful payment to major credit bureaus as a positive payment, and thus improve the user’s credit.
By allowing payments consumers are already making to build credit, the company hopes to help consumers have greater access to capital to disrupt the paycheck cycle some people may find themselves in. Eliminating the risk of missing a payment provides a safety net for consumers.
And later, the company said that some customers will be able to delay withdrawing funds for invoices from their account for 45-60 days if they cannot immediately cover the purchase.
“StellarFi believes everyone is creditworthy. Anyone who pays rent should be able to get a mortgage. The company’s mission is simple: financial inclusiveness. StellarFi solves today’s arbitrary process of accessing capital,” said Angela Yee, founding partner of StellarFi and co. -host of The breakfast club — a nationally broadcast radio show on Power 105.1 — said in the press release.
Earlier this month, StellarFi partnered with the National Foundation for Credit Counseling as part of its ongoing goal to support consumer financial wellbeing. Users can follow a link in the StellarFi app to schedule an appointment with a certified credit counselor to learn more about credit and improve their financial literacy.
Also: Mint brings financial literacy to consumers and underserved communities to help improve financial habits
The app launched today along with its bill payment tool, but the company plans to expand the app’s functionality. Future plans include creating a credit marketplace where consumers can access offers below market rates once they have improved their credit profile through bill-paying ability.
“What we’re going to do is help people connect with offers below market rates. Because we’re raising their profile, we see ourselves as a credit market, long-term,” Zarrad said.
“[You can] link all your bills, put [them] on autopilot, Stellar will pay [them] for you and build your credit, generating rewards [to lower your bills] because you get points for every invoice paid through Stellar. And on top of that, you will be able to select what you need. If it’s a mortgage, we’ll give you access to mortgage deals, home improvement loans, everything you need as a homeowner. If it’s a car, you’ll be able to access credit to buy a vehicle,” he said.
The company also plans to implement financial literacy games in the app. By playing a game, users will develop their knowledge of financial literacy and earn rewards. The rewards can then be used to reduce the cost of their bill payments. Additionally, the company plans to support financial literacy in schools for K-12 students as well as college students.
If you want to sign up for StellarFi, you can do so on its website.