How Kalpesh Kapadia “DESERVE” Helps Credit Invisible

How “DESERVE” Helps Credit Invisible… Obtaining credit is a crucial milestone on the path to financial independence and recognition for every student in school. For example, you need to have an established, successful credit history if you want a mortgage down the line. You’re likely to start building your college credit. That move is considered impossible for a group of consumers called “credit invisible.”

Nearly 44 percent of students do not have a credit card, according to survey. Even if they want one, they don’t have a lot of card options for young adults. Most credit cards require a credit file or a FICO score.

 

How "DESERVE" Helps Credit Invisible

There are increasing numbers of college students in the United States, many of them overseas, who are called “credit invisible” which means they do not have the qualifications to be accepted for a basic credit card.

That’s where a Deserve company steps in. By using alternate, forward-looking data, Deserve can increase the likelihood of receiving credit for an “invisible” applicant.

About Deserve

California-based startup Deserve is specialized in supplying underserved but deserving customers in the United States with credit. More specifically, by using alternative data as well as a unique underwriting model, Deserve offers credit card products to these underserved populations. This population includes consumers who are either new to credit or who lack the traditional criteria to successfully apply for credit.

Youth have always been struggling with the financial system. Because the program uses credit history, because they were new to the system, young people are still excluded from credit products. If you’re a U.S. refugee or graduate from overseas, it’s much worse. Kalpesh Kapadia set out to change a distorted culture of youth. He’s Deserve’s co-founderand CEO, offering credit cards to college students at 2,500 U.S. universities.

To do this, he has developed a lending platform focused on analytics that also branches out as a product to power credit cards. We’re talking about how Deserve can support credit-thin files and why he thinks his company is at an advantage when it comes to competing against credit products from Marcus and the new credit card from Apple.

The impetus to create Deserve

I came to study in the United States just over 24 years ago and I came from a history of academic achievement and economic affluence. In my new location, I was regarded as an intangible when I arrived. I studied in the same classroom as my peers in America, and they all had access to credit and loans, but I had none of that.

when I worked on Wall Street for 10 years and had an incorrect statement on my credit office file that put me in a penalty box for seven years due to no fault of my own. I felt that the credit origination, underwriting and management process had been disrupted.

Over the years, many of my friends and family members have come to work and study and have faced most of the same problems.

The Company Mission

Deserve's company mission

Our mission is to give deserving but underserved populations access to fair credit and lead them to financial independence. Connection, activism and freedom are our core principles.

We want to give you access to fair credit, so we don’t want to give you a card with a high interest rate and fees. i and my team wish to lead with activism so we want good credit conduct to be encouraged and rewarded. We focus heavily on credit training and financial literacy. And last but not least, financial autonomy. If you’re a young person and we’re helping you build credit history, then you’re not going to have to rely on loan applications from cosigners.

In general, we want the right kind of behavior to be promoted. Our products have a rail guard to keep you out of trouble. Contrary to this, most banks ‘ business model includes only bringing you into enough trouble to get a lot of money out of you, but without getting into too much trouble you’d charge-off. Our template is the other way around.

We would like to help you get a good credit score; we would like to help you get the reward. We’re all about that.

Why You Should Get It

Not only with this card, but the entire Deserve card program is made specifically for students:

  • There is no annual fee or charges
  • You can get even if you have never had a credit history, which is a benefit other credit cards for college students do not usually offer.
  • Deserve EDU does have a list of restrictions that act as financial guardrails for new credit card holders—namely, you cannot transfer a balance or get cash advances. Among credit cards for students, this is a very important distinction that can help you avoid wallowing in debt.
  • This best college student credit card offers a quick, easy-to-use reward program (no revolving categories to keep track of)
  • You can access the $59 monthly Amazon Prime Student program.
  • There are no foreign transaction charges if you plan to travel during the spring break and take a gap year or a semester abroad.
  • This card also stands out in the $25 relatively mild late fee category.

Drawbacks

Two Discover Student Credit Cards— the Discover it Student Cash Back and Discover it Chrome — both offer an introductory 0 percent APR for six months if you know you have a short-term budget-buster like an upcoming big purchase. Discover also provides you with an incentive to keep your grades up with an annual $20 statement credit available for up to five school years as long as your GPA remains at or above 3.0.

Deserve helps Credit invisible

Discover, however, is less widely accepted outside the U.S., if you plan to study abroad, a consideration.

While many student credit cards require you to be a student in the traditional sense of the word, there is a Capital One student credit card that gives you more flexibility: The Capital One Journey Student Rewards Mastercard does not require college registration for cardholders. When you pay on time every month, the card offers 1 percent cash back and an additional 0.25 percent cash back bonus. Nevertheless, after five months, there is a possible credit-limit hike.

 

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