US-based public benefit corporation StellarFi has launched a new credit building product to help customers build credit rating by paying their bills.
The new offering is aimed at customers who have poor credit or no credit history or those who are living paycheck to paycheck.
StellarFi works by reporting all bill payments such as rent and utilities directly to credit bureaus including Experian, TransUnion, and Equifax.
StellarFi said that more than 40,000 customers have already expressed interest in in using the product.
The company, which aims to disrupt the US poverty cycle, does not require credit history, deposits, and interest to use StellarFi. It also provides members access to an expert-led financial education blog.
StellarFi founder and CEO Lamine Zarrad said: “StellarFi is the first and only product that reports an unlimited amount of everyday bill payments directly to Experian, TransUnion and Equifax, quickly building a positive payment history for our members — that is our differentiator.
“StellarFi prides itself on accessibility: there are no credit checks and no interest rates. StellarFi does not assume people have the extra money to take on debt through secured loans. We are solving the credit paradox of needing credit to obtain credit by paying and reporting household bills.”
StellarFi customers can use account information to directly pay for bills. They can also create custom billers.
Furthermore, the company pays members’ bills on their behalf, creating a payment cushion for members that gets reported directly as credit.