StellarFi’s partner with the National Foundation for Credit Advisory
StellarFi announced On Wednesday, he cooperates with the National Foundation for Credit Advisory (NFCC). The NFCC is a non-profit organization that specializes in advising consumers on all aspects of credit. The new partnership gives StellarFi users access to NFCC certified credit counselors to help them learn more about loans and improve their financial literacy.
“We are passionate about helping people overcome financial obstacles by educating them about financially responsible behavior,” said Bruce McClary, senior vice president, NFCC Communications, in a press release. “We are delighted to work with StellarFi to reach out to more Americans who may be in financial distress, help them solve these problems, and give them the best possible life.”
The new partnership is another step towards StellarFi’s goal of making it easier for a wider public to access credit and finance knowledge. Once launched, users will be able to use a link in the StellarFi app to arrange an appointment with an NFCC advisor. However, according to Stellar, everything will be handled in the app in 2023.
“We believe human touch is still extremely important in getting people to pay bills on time, understand how to budget and so on,” said Lamine Zarrad, CEO and founder of Stellar. ZDNet. “You can’t solve it with an app, you need a human who provides context-based, detailed advice. And that is why we have decided to cooperate with the NFCC and we will continue to expand our cooperation with organizations that have a mission in line with our mission: increasing access to credit, improving people’s financial lives ”.
What is StellarFi?
StellarFi, the company’s app which is currently in beta, is a tool that will pay the consumer’s bills and report positive payment activity at all three major credit bureaus (Equifax, TransUnion, and Experian). In this way, the business will help consumers build their credit by simply making payments on time and eliminating the possibility of missing one.
StellarFi will analyze the payment of your bills, create an account, and then make the payment on behalf of the consumer. Upon payment, Stellar will debit the amount from the consumer’s linked bank account. Stellar verifies the balance in advance, so as long as there are funds there, consumers will not miss any of their bill payments.
StellarFi requires a monthly subscription and has three membership levels that offer varying degrees of functionality. There is an entry-level tier which costs $ 4.99, a medium tier which costs $ 9.99, and a top tier which costs $ 19.99 per month. The $ 9.99 tier offers consumers the ability to add unlimited paid bills.
According to the company, there are no additional fees beyond the monthly subscription fee. The company’s website currently offers consumers a free trial of the service and the option to sign up for a waiting list. StellarFi is to be released in June.
In addition: Mint provides consumers with financial literacy, neglected communities to improve money habits
Since the company pays the bills on behalf of the consumer and then withdraws the funds from the consumer’s bank account after the fact, the company bears the risk. StellarFi is then able to report the payment to the credit bureaus as a positive payment, which builds up the consumer’s credit.
According to Zarrad, the difficulty in accessing credit products and capital for consumers is one of the flaws in the financial system that the company is trying to solve. “You must have an excellent credit history. You need to have a certain profile that makes you attractive to the lender, takes the risk out of you and as a result is really ineffective, ”he said.
By offering consumers a way to get credit to make the payments they are already making, Stellar seeks to break the poverty cycle in which some pay-to-pay consumers find themselves. rent payments, whether it is a private individual or a property management company. Stellar will even cover the cost of subscribing to any service the user subscribes, such as Netflix, and then report that payment to the credit bureaus to help build consumer credit.
End of the cycle
Stellar plans to help build a profile of its clients so that they can get more favorable terms on financial products, as well as faster access to capital when they need it.
“It’s not that we wonder how to insure someone, we wonder how a credit score works, we are not naive enough to believe that we are smarter than the industry, or that we have access to some magical set of attributes that no one else has Said Zarrad.
“It’s just that no one is providing users with conditioning training. We have personal trainers for fitness, nutritionists and nutritionists. There are industries that help people become better when it comes to health, but when it comes to financial health, the best thing there is is a budgeting app, ”he said.
By automating essential payments for customers, thus eliminating the risk of missed payments, leading to a negative impact on their creditworthiness, Stellar hopes to pull people out of the payout-to-payout lifecycle faced by many consumers.
“Basically, that’s what we wanted to do. Have an automated way to get you on board, connect to your financial life, and understand what’s going on in your bank account and [see] what bills you pay and then do something meaningful for you. Not telling you what to do, but rather pay the bills. Give access to capital. And if we could pay the bills, we could potentially break the paycheck-to-paycheck and poverty cycle for some people, ”said Zarrad.
When StellarFi goes live, it will include a bill payment utility, but the company plans to expand the app’s functionality later. Work is also underway on a credit market where consumers can access offers below market rates.
Additionally, sometime after the launch of StellarFi, the company plans to take even greater risks on behalf of its clients. Stellar plans to allow some customers 45 to 60 days to delay their bank account withdrawals if they are unable to cover the bill payment immediately.
Also: Juni Learning, Bloom offers a free investing course for students
The company also wants to further foster financial literacy. Stellar plans to gamify financial resources to entice users. This means that users can play financial games and earn badges or rewards that can then be applied to bill payments to keep costs down. Stellar is also looking for opportunities to work with K-12 schools and colleges to foster the financial literacy of students and younger generations.
StellarFi is expected to launch later this month, but interested consumers can sign up for a waiting list now StellarFi website.