US fintech Greenlight launches credit builder tool for teenagers
US-based fintech Greenlight, which operates a family banking app, has launched a new credit builder for teenagers to help them build credit before turning 18.
Greenlight launches credit builder tool for teens
Citing a survey result, Greenlight says 84% of teenagers between the ages of 18 and 19 have zero credit history, limiting their opportunities to get their first job, or buy a car and a home.
Additionally, Greenlight’s research suggests that parents want their kids to learn about credit, but don’t have access to tools and resources, while teens are “stressed” about money and want more financial education.
Using the Greenlight Family Cash Card, a credit card which offers up to 3% cashback, Greenlight says parents can add their teenagers as authorised users of the card to start building and managing credit. The card is available with all of Greenlight’s subscription plans, which start at $4.99 a month.
And they can do it “responsibly” by tracking their balances on the Greenlight app, with parents having the ability to set flexible spending limits and getting real-time purchase alerts. The app also gamifies credit building through Level Up, an in-app financial literacy game, that includes credit lessons for teenagers.
“At Greenlight, we’re committed to helping families build healthy financial futures, and we know credit is a big part of financial wellbeing,” says Tim Sheehan, co-founder and CEO of Greenlight.
“With Greenlight’s new credit builder, teens can easily build credit before they turn 18, setting them up with a strong financial foundation and better opportunities.”
