Fintech Nexus Newsletter (December 14, 2023): Upgrade launches a new kind of secured credit card
Upgrade continues to break new ground in consumer fintech.
When the Upgrade Card launched in 2019, it was the first credit card ever to marry the benefits of a revolving line of credit with a fixed-rate installment loan.
Yesterday, Upgrade launched another innovative new card product. The Upgrade Secured Onecard is a secured card backed by a savings account that pays more than 5% interest. It is also a generous cash-back card, users earn 1.5% to 3% depending on the category.
Upgrade also offers the ability for users to graduate to an unsecured card if they hit certain milestones. And when they do graduate they can keep the same card, it just transforms into an unsecured card.
The new card is designed as a loss leader of sorts as CEO Renaud Laplanche stated, “It’s not a product that is designed to make money. It’s a way to help consumers build their credit.”
It is also a way to bring consumers into the Upgrade ecosystem who do not qualify for an Upgrade Card or a personal loan today.
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