Each time you make a purchase on a credit card, you automatically add an amount for that purchase into the ClearCred 'savings' account. Then, when you need to pay the credit card amount before it's due (and incurs interest), you pay it from the ClearCred account.
It seems to be a third-party instant savings account, with an app that keeps track of all the amounts and due-dates, in return for your information and likely a cut of the interest as others have alluded to.
You could probably do the same with any other instant savings account and manually keeping track of purchase, without giving your information away.
First paragraph is spot on. But it’s a subscription based app less than $5 and the user keeps all the interest. We will never sell information, I hate that stuff.
Our goal is to have people stick to the money they have and to stop overspending. Additionally, we want to give new credit card users a chance to get used to having a credit card. Credit cards are good, if you spend them like a debit card.
Guess so. And the "store away" account is likely in a money market fund where they either take all returns or a significant chunk of it. If the product is free, you're the product.
Product will be subscription based (<$5) and you keep all the interest, which could pay off subscription depending on monthly spending. Too many fintech’s rely on percentage of volume and it’s not really reliable.
Because it automatically stores-away money for each purchase. Some users enjoy the piece of mind of not having a bill at the end of month, and this provides the funds in order for that to happen. For me, I personally hate budgeting with credit cards and hate seeing my statement at the end of the month cause my checking balance is not accurate then. I would use a debit card more, but I get little protection and no benefits. This app may not be for you and that's okay!