Credit

The Times Herald (Norristown, PA) - - BUSI­NESS -

that don’t re­quire a se­cu­rity deposit.

How star­tups eval­u­ate ap­pli­cants

Among them is De­serve, which be­gan of­fer­ing cards in 2017. The com­pany has three cards: the De­serve Clas­sic for peo­ple new to credit, the De­serve Edu for stu­dents and the De­serve Pro for peo­ple with lim­ited credit. More star­tups have fol­lowed with their own cards for peo­ple new or newer to credit, in­clud­ing Petal and Avan­tCard.

These com­pa­nies have their own un­der­writ­ing stan­dards to eval­u­ate ap­pli­cants’ cred­it­wor­thi­ness based on fac­tors such as in­come, ex­penses, as­sets, debts and bank­ing in­for­ma­tion. De­pend­ing on the com­pany, you may have to pro­vide ac­cess to your bank ac­count.

“The way you use a debit card or bank ac­count is highly in­dica­tive of how you will use a credit card,” says Kalpesh Ka­pa­dia, CEO and founder of De­serve.

Cards of­fered by such com­pa­nies are an al­ter­na­tive to se­cured credit cards, which re­quire a cash se­cu­rity deposit that’s re­funded when you close or up­grade the card. Your credit limit on a se­cured card will usu­ally be equal to your deposit. The un­se­cured cards from al­ter­na­tive

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