Best Credit Card Offers specially for you

About Us  |  Contact Us  |  Articles  |  News  |  Tips  |   Tools
ADVERTISER DISCLOSURE is an independent, advertising-supported web site which is compensated by the credit card issuers whose offers appear on the site. This compensation may impacts how and where the credit products appear on our site, including, the order in which they may appear within credit product lists. does not review or offer all available credit products.

Startup Aims to Help Millennials Build Credit

[Saturday, December 19th, 2015]

For young people, establishing a credit history can be tricky. It may feel a bit like a Catch-22, where you need to have a credit history in order to borrow money, but you can’t establish that history without borrowing money first.

A new startup company aims to fix that, letting young adults apply for loans even if they don’t have any credit history, with the specific intent of building that history and establishing a credit score.

Called Backed, the startup is a digital lending platform that is now accepting applications in New York, New Jersey, and Florida. They have secured $1.5 million in angel investment funds. “Most existing lenders don’t have the capacity to properly estimate the default risk of Millennials,” said the company’s co-founder, George Popescu. He said that more than 86% of Millennials are declined for a loan or are overcharged when they do get one.

Backed works by allowing young people to use their parents’ credit scores as collateral, effectively letting them “borrow” their folks’ good credit.

The Boomerang Generation

Millennials who move back home after moving out for college or a job have been dubbed “the Boomerang Generation” by the media, and that demographic has grown from 22% to 26% over the last five years, according to data from the Pew Research Center. Sixty-three percent of Millennials don’t have a major credit card, which definitely affects their ability to establish credit and to do many financial things.

A credit card is a necessary financial tool these days, and not having one keeps young folks from having great credit, using credit card rewards, and being able to take advantage of 0% APR financing on purchases, among other things.

Cosigners vs. backers

The difference between having a parent simply co-sign on a loan and using the Backed service is that when someone co-signs, they only are called on if the loan is in default. Backed lets cosigners know right away when any payment is late or otherwise insufficient. That way, parents know sooner when their child is possibly getting in over his or her head.

When cosigners are notified that a loan is in default, they will then be faced with fees, penalties, and interest to cover. Backed keeps that from happening—or at least, it aims to. When a parent or other cosigner is notified of a shortfall, there is a 15-day grace period in which no one’s credit score will be negatively affected, allowing them to resolve the issue without repercussions.

Read also

New Business Card From U.S. Bank Offers Value Where It’s Most Needed
[October 13th, 2018]

Most people are familiar with rewards credit cards that give members bonus cashback in certain categories that change each quarter. But U.S. Bank’s new business credit card will let companies earn more rewards by offering the biggest bonuses in categories where they spend the most each statement period.

Continue reading ››

Propel Card From Wells Fargo And American Express Offers Triple Reward Points
[July 16th, 2018]

Wells Fargo and American Express have announced changes to their no-annual-fee Propel card, making it an even better deal for customers who use streaming video services, order food and go out to restaurants, and travel frequently.

Continue reading ››

New Chase Credit Cards Offer Big Rewards For Travelers
[April 18th, 2018]

There are two new rewards credit cards available for travelers who want to collect extra points when checking in to their favorite hotels. The IHG Rewards Club Premier card and the IHG Rewards Club Traveler card from Chase Card Services offer reward points, free anniversary nights, elite membership stats, no foreign transaction fees, and more.

Continue reading ››
Copyright © 2003-2018 All Rights Reserved strives to keep credit card information up to date and accurate. However, all the credit card information is presented without warranty and can be changed by the credit card issuers at any time. Click the "Apply online" button to see the online credit card application and to review current credit card terms and conditions. Note that can be compensated by credit card issuers when the visitors apply for a credit card through the website.
* The webpage is a free service and an information resource for credit cards and financial products and services available to eligible United States consumers. does not offer any warranties and is not a direct service. There are no guarantees for approval or offers when applying for a credit card. Please refer to the application if you would like more information on each credit card. When you click "Apply" for a particular credit card, please take the time to review the terms and conditions of the product/service at the issuer's website. All logos on the website are property of their respective owners.
Information in these articles is brought to you by Banks, issuers, and credit card companies mentioned in the articles do not endorse or guarantee, and are not responsible for, the contents of the articles.
Disclosure: Not an access card.