SAN CARLOS, California, October 18, 2021 (GLOBE NEWSLETTER) – Opportune (Nasdaq: OPRT), an AI-driven financial services and technology company that gives hard workers access to responsible and affordable loans, today shared the results of a new survey that found that Many Americans depend on credit cards as a vital financial tool, a limited understanding of how to obtain and manage cards properly could hamper their access to more affordable credit options.
This is especially troubling because hardworking people, forced to rely on expensive credit card products due to poor or insufficient credit history, often pay more interest and fees than other Americans. In fact, according to the Financial Health Network’s FinHealth Spend 2021 report, financially vulnerable households and vulnerable households spent around $ 90.5 billion on fees and interest – 87% of the total market – for general-purpose credit cards in 2020.
New survey data from OnePoll, collected on behalf of Opportune, uncovered several behaviors that likely contribute to this uneven burden and limit people’s ability to create credit, unlock more affordable credit options, and enter the financial mainstream:
- Those with credit cards have taken an average of two cash advances, which is likely to lower their score;
- Almost a quarter (24%) of credit card holders admitted paying less than the minimum amount owed or making no payment, and 43% paid only the minimum amount owed;
- Thirty-nine percent (39%) of credit card holders regularly use more than 30% of their available line of credit;
- More than two in five struggle to keep up with the credit cards they hold (44%) and a similar amount admits they are so in debt they don’t even know where to start paying them off (41%) .
Unfortunately, despite 54% of them saying they were confident in how to build their credit, the survey showed that people still regularly fall victim to lingering credit myths such as:
- All debt is bad debt (35%);
- Checking your credit report will lower your credit score (24%);
- Debt repayment clears negative history (late payments, missed payments, etc.) (21%);
- Credit scores are the only thing lenders consider (21%);
- Closing a credit card will increase your credit score (18%).
“For consumers without a credit score or who have been badly rated by major bureaus, establishing good credit is often an expensive proposition,” said Matt Jenkins, chief operating officer of Opportune and DG of his personal loan activity. “In addition, a lack of knowledge of how credit works too often creates situations that are even more damaging to the financial health of consumers. The good news is that some lenders are now using artificial intelligence and alternative data to assess the true creditworthiness of hardworking people so they can provide them with affordable and responsible credit that helps them move into the financial mainstream. .
In August 2021, Opportune launched the Oportun® Visa® credit card after a successful pilot that now has more than 75,000 customers. Unlike other card products offered to financially responsible individuals with little or no traditional credit history, the Opportune the card is not guaranteed and offers starting lines of credit up to $ 1,000. The Opportune card builds on the company’s success in providing affordable credit to people outside the financial mainstream to provide on-demand funds and the ability to build credit faster.
Since its foundation, Opportune has successfully granted more than 4.3 million loans and $ 10.5 billion on credit, mainly in small dollar loans, saving clients more than $ 1.9 billion in interest and fees compared to other options generally available to people with little or no credit history. By reporting repayment performance to major credit bureaus, the company has also helped over 925,000 people begin to build credit histories.
The OnePoll survey interviewed more than 2,000 people with poor, no or unknown credit. For additional data, please contact Opportune directly to [email protected] For more information on the Oportun® Visa® credit card, please visit https://oportun.com/whatweoffer/creditcards/.
Opportune (Nasdaq: OPRT) is a financial services company that leverages its digital platform to deliver responsible consumer credit to hardworking people. Using AI-powered models that leverage 15 years of proprietary customer information and billions of unique data points, Opportune granted more than 4 million loans and more 10 billion dollars in affordable credit, offering its clients alternatives to payday loans and auto titles. In recognition of its responsibly designed products that help consumers build their credit history, Opportune has been certified as Community development financial institution (CDFI) since 2009.
Media contactGeorges gonzalez650-769-0441
Source: Opportunity Financial Company
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