StellarFi announced Tuesday that it is now available to all consumers. The credit building app makes your bill payments on your behalf and then reports the successful payment to the three major credit bureaus to help you build your credit. Eligible bill payments include rent payments, streaming subscriptions, utilities, and more.
StellarFi offers three different membership tiers for users: a $4.99 monthly membership, a $9.99 membership, and a $19.99 membership. The middle tier allows consumers to add an unlimited number of bills that StellarFi can pay on their behalf. There are no other costs for users to worry about, the company said.
No credit check is required to create an account, just a valid bank account and Social Security number to verify your identity.
†[Bills] could be of use to you [payments]your rent, Netflix… And what we do is analyze quickly [the bills]and we will create an account for you and make a payment on your behalf and withdraw money from your linked bank account to pay ourselves back,” said Lamine Zarrad, CEO and founder of Stellar, ZDNet†
Because StellarFi takes risks on behalf of the user, it can report the successful payment to the major credit bureaus as a positive payment, thus improving the user’s credit.
By allowing payments consumers already make to build credit, the company hopes to help consumers gain better access to capital to disrupt the paycheck-to-payroll cycle that some people find themselves in. Eliminating the risk of missing a payment provides a safety net for consumers.
And later, the company said certain customers could delay withdrawing funds from their accounts for 45 to 60 days if they can’t immediately cover the purchase.
“StellarFi believes everyone is creditworthy. Everyone who pays rent should be able to get a mortgage. The company’s mission is simple: financial inclusiveness. StellarFi solves the current arbitrary process of accessing capital,” Angela Yee, one of the founders from StellarFi and co-host of The breakfast club — a nationally syndicated radio show on Power 105.1 — said in the press release†
Earlier this month, StellarFi partners with the National Foundation for Credit Counseling as part of its ongoing goal to support the financial well-being of consumers. Users can follow a link in the StellarFi app to schedule an appointment with a certified credit advisor to learn more about credit and improve their financial literacy.
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The app launched today with its bill payment tool, but the company has plans to expand the app’s features. The future plans eventually include building a credit marketplace where consumers can access offers below market rates once they improve their credit profile through the ability to pay bills.
“What we’re going to do is help people connect with offers that are below market rates. Because we’re raising their profile, we see ourselves as a marketplace for credit in the long run,” Zarrad said.
†[You can] link all your accounts, put [them] on autopilot, Stellar will pay [them] for you and build your credit and generate rewards [to lower your bills] because you get points back for every bill paid through Stellar. And on top of that you can select what you need. If it’s a mortgage, we’ll give you access to mortgage offers, home improvement loans, everything you need related to being a homeowner. If it’s a car, you can get credit to buy a vehicle,” he said.
The company also plans to implement financial literacy games in the app. While playing a game, users build their financial literacy knowledge and earn rewards. Rewards can then be used to reduce the cost of their bill payments. In addition, the company has plans to support financial literacy in schools, both for grades K-12 and college students.
If you are interested in signing up for StellarFi, you can do so at her website†