What is the Cleo Credit Builder card*?
The Cleo Credit Builder Card is a secured charge card, which helps your credit score go ⏫**. With a minimum deposit of only $1 and no hard credit checks, the builder card lets you build credit, while you make daily purchases.
*The Credit Builder Card is issued to WebBank, Member FDIC
**Cleo AI cannot account for all variables in your financial life or changes to reporting practices. Increases or specific changes to your credit score are not guaranteed.
How does it work?
The Cleo Credit Builder Card is a very simple and impactful concept:
You put cash into your security deposit, and this increases your credit limit
You then buy/pay for things as you normally would & Cleo can help you pay off your card each month when you sign up for carefree credit building (it’s your choice how you pay!)
Cleo reports your account status to Experian, TransUnion and Equifax
Cleo helps you build up your score over time
Does Cleo charge any fees for using the Credit Builder Card?
There are no specific fees attached to making purchases with the card.
There is a $2.50 fee for accessing a card cash advance at an ATM, in addition to fees charged by the dispensing ATM or bank.
The Cleo Credit Builder Card is only available if you are a member of the Cleo Builder Subscription plan, where you pay a monthly fee to access all the features associated with the plan, including the opportunity to apply for the Cleo Credit Builder Card.
What’s the difference between the Credit Builder Card and a normal credit card?
With normal, unsecured credit cards, a financial institution is lending you money (aka your credit limit) and you pay monthly interest rates on however much you've borrowed. Lenders will typically decide your credit limit by looking at your credit score and different aspects of your credit history.
However, your Cleo Credit Builder Card is a zero-interest card. The amount of the security deposit will become your credit limit. The more money you put in the security deposit, the higher your credit limit will be. The entire balance on the card must be paid off at the end of each cycle.
What is the credit limit on the Credit Builder Card?
Your credit limit is set based on the funds that you add to your security deposit, via the Cleo app.
e.g, If you add $200 to your security deposit, the credit limit on your card will become $200 in addition to the amount you already deposited.
Tell me more about this security deposit?
Your security deposit is held with our bank partner, WebBank