Cred, a new venture founded by Kunal Shah and funded by Sequoia Capital, Ribbit Capital, and other angel investors, will soon launch a platform that allows users to pay credit card bills. Kunal Shah is the co-founder of Freecharge, an online bill payment platform that was sold to Snapdeal in 2015.
The new platform to be launched by Cred, the company that received the country’s largest initial funding of $25 million, will not only enable credit card payments but also inform customers about the hidden charges in their credit card bills. The company, in its initial stages, will offer its product only to those individuals who have a high credit score, preferably above 750. Those with lower credit scores will be waitlisted.
The aim of the company is to reward individuals who have a high credit score and who make sure they pay their credit card bills on time. The platform will offer exciting offers and discounts to users who make credit card bill payments on time and maintain a high credit score. Users who do not make timely payments or whose credit scores drop will have to exit the platform.
Cred has currently partnered with Furlenco, Airbnb, Ixigo, BookMyShow, CureFit, FreshMenu, and Urban Ladder to provide offers and discounts.
The company wishes to aid customers in lowering interests, lowering charges, and reducing the cost of insurance payable by them. The company will set up a considerably large base of customers through credit card payments and slowly expand to other sectors and services such as insurance.
A credit score is a statistical number that evaluates a person’s creditworthiness based on the credit histories. About 2-3% of people in the country, who have high credit scores, are not aware of the advantages of having a decent credit score. Cred aims to make such people understand the benefits of having a good credit score.
Sources: LiveMint and ET Tech