The investment not only demonstrates BillGO's determination to support other up-and-coming fintechs, but - perhaps more importantly - it underscores BillGO’s commitment to help consumers gain traction in the financial mainstream.
That’s because Grow Credit is a credit-building service aimed at lowering the barrier of entry for millions of Americans in need of establishing and building credit. Grow Credit’s focus on broadening financial inclusion for consumers closely mirrors BillGO’s core belief that everyone deserves access to a healthy financial future. BillGO is far from alone in recognizing the value Grow Credit brings to the market. In recent months, Grow Credit has partnered with MasterCard as well as several leading financial institutions (FIs) including Sutton Bank, Blue Ridge Bank and MRV Banks.
Nearly one-third of U.S. consumers are now classified as only “fair” and “very poor” credit risks – classifications that can severely impair their ability to obtain affordable mortgages, car loans, credit cards and more. And — for those millions of Americans unable to qualify for traditional loans because of substandard credit scores — high-interest, high-risk alternatives such as payday lenders may be the only option left.
And, unfortunately, what many Americans must learn the hard way is even one late bill payment can have such a negative impact a credit score that traditional lenders are no longer a viable option.
By investing in Grow Credit, BillGO bolsters its commitment to helping consumers improve their financial well-being. Grow Credit is a black-owned startup, that was launched in 2018. It enables consumers with poor- or even non-existent credit histories to take steps to build or repair those histories for free by using virtual cards to pay their bills and subscription-services such as Spotify and Netflix. As Grow Credit customers work to mend their financial track records, Grow Credit shares the balances and payment histories to the leading credit bureaus in an effort to help user credit scores climb. And the strategy appears to be working: Grow Credit’s research shows that customers using their services have seen their credit scores increase by as much as 51 points after only 12 months.
"We are excited that BillGO is investing in our vision and serving as a key collaborator,” says Joe Bayen, CEO of Grow Credit. “In addition to enhancing the modern bill payment solutions it offers FIs and fintechs, BillGO’s support enables our organization to deliver a more effective credit builder program to consumers. This, in turn, enables FIs to serve a larger segment of the underbanked consumer market.”
Not only is Grow Credit helping disenfranchised consumers achieve financial well-being, it also “aims to transform corporations and small businesses into financial inclusion-focused organizations by providing a platform, which reduces employee turnover while simultaneously improving their workforce's credit score, in addition to offering exclusive discounts on popular subscriptions.”
“Credit building is not solved with a single solution,” says Dan Holt, CEO and Co-founder of BillGO. “By investing in Grow Credit and integrating their technology into BillGO, it enables us to broaden the scope of the bill payment tools we offer Americans to help them find their financial footing and succeed in the financial mainstream.”