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The catch-22 predicament postured by the credit-scoring market has long been blamed for disallowing financially-responsible people, who do not have the means to prove it, from accessing credit. There are 64 million of these “thin-file” consumers who deal with such difficulties with obtaining charge card and loans, according to Experian.

Facilitating the shift from “thin-file” to “creditworthy” has long been the goal of alternative credit reporting company eCredable, which has struggled to get traction among customers. However, the brand-new technique to partner with prepaid card companies can enhance the company’s exposure and, at the exact same time, raise customer awareness of eCredable’s advantages.

“The # 1 function that a prepaid debit card user desires is the capacity to develop credit,” said Steve Ely, CEO of eCredable, in an interview. “We will have the ability to share their payment task with partnered loan providers, who report to the standard credit bureaus.”

Currently, through eCredable, consumers can tape-record their repayments for expenses, rent and other monetary obligations.

Every month, a consumer is accountable for noting that a bill was paid on time. On the other hand, a report card is generated to help track their credit rating, which varies from A to F. When customers wish to submit their eCredable to a loan provider, they pay $20 to validate each costs.

ECredable deal with partnered loan providers that’ll utilize the company’s credit rating to give out customer loans and report these loans to the 3 significant UNITED STATE credit bureaus – Equifax, Experian and TransUnion.

And, eCredable imposes a “pre-approved offer” policy.

“We wish to be able to state to a customer, ‘Concerned eCredable. Make an A or a B and you’ll qualify for these items,'” stated Ely. “We are not making use of the model that states, ‘Get an A or a B and call this company and see what takes place.'”

Partnerships on the way

The partnership with prepaid card companies suggests that these companies will market eCredable’s advantages and draw in thin-file customers that have much greater value.

Here’s the win-win-win proposition: customers can get loans to assist develop credit, companies will get cardholders who hold their prepaid cards longer and pack more cash to pay their costs, and eCredable gains exposure while customer payment activity can be pulled immediately from their cards.

Today, eCredable is partnered with 2 lenders. Among them is RoadLoans, an online car lending division of Santander. The most is Churchill Home loan, which provides home loans and refinancing – with the promotion of personal finance guru Dave Ramsey.

The business will quickly partner with a loan provider to offer installment loans. In October, eCredable is scheduled to launch a partnership with private-labeled retail credit card company, Ely stated. The partnership with a prepaid debit card issuer is likewise slated for next month.