Business

Nubank launches a credit card to add limits focused on unbanked people

The new product allows the transfer of any amount from Nubank's digital account to be used for credit purchases

Photo: Nubank Website
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  • The customer can deposit any amount in his account and the credit function is authorized;
  • The amount used in credit transactions is reserved, that is, it cannot be used for other transactions;
  • The new format is a gateway for those who want to have a credit card.

Brazilian fintech Nubank announced a new credit card whose target audience is unbanked people and who have difficulty getting credit. It works as a kind of prepaid credit card (a kind because the card bill is paid after) in which the customer can add a limit for making purchases on credit by depositing a value in his account – in the Nubank app, the option appears as “add more limit.”

That is, if the customer wants to have BRL 500 to use for purchases on credit, he can deposit that amount in his account and the credit function is authorized. The amount used in credit transactions is reserved, that is, it cannot be used for other transactions, and at the end of the month the customer pays the card bill.

READ ALSO: Nubank raises $400 million and hits $25 billion valuation

According to Nubank, the new format is a gateway for those who want to have a credit card.

“It’s a new way to get credit limits. The goal is to make it easier for people to have a traditional credit card. Financial institutions have analysis systems that end up denying a lot of people and. With the card to add limits, customers they can start building a credit history”, said the company.

For now, the new modality is only available to customers invited to the testing phase.

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