StellarFi, a public benefit corporation, today announced its credit-building product is now available to everyone. With this news, 132 million Americans — who currently have poor credit or no credit, or are living paycheck to paycheck –– may build their credit rating simply by paying their bills.
StellarFi is the first and only product that reports all bill payments directly to Experian, TransUnion and Equifax, swiftly building a positive payment history for members. Unlike others who report alternative data which deliver varied credit scores, StellarFi assists with credit-building by reporting to the major bureaus noted above to deliver an accurate score that matters to lenders. StellarFi already has more than 40,000 waitlisters who have expressed interest in using the product once available to build their credit scores. Members can access the StellarFi web app on mobile and computer devices. Mobile apps will roll out later this year.
StellarFi is on a mission to disrupt the U.S. poverty cycle, improve financial literacy, and empower people to take control of their respective financial journeys and achieve their goals. Members are not required to have a credit history to use StellarFi. The company also requires no deposits, has no interest and provides easy membership approval — part of the company’s mission to make credit access universal. StellarFi members can dramatically increase their credit scores by paying everyday bills, such as rent and utilities, all on one platform.
Solving the Credit Paradox of Needing Credit to Obtain Credit
“StellarFi is the first and only product that reports an unlimited amount of everyday bill payments directly to Experian, TransUnion and Equifax, quickly building a positive payment history for our members — that’s our differentiator,” said Lamine Zarrad, StellarFi founder and CEO, who is a repeat entrepreneur and a former U.S. Treasury Department bank examiner. “StellarFi prides itself on accessibility: there are no credit checks and no interest rates. StellarFi doesn’t assume people have the extra money to take on debt through secured loans. We’re solving the credit paradox of needing credit to obtain credit by paying and reporting household bills.”
StellarFi users can use their StellarFi account information to directly pay for bills. StellarFi also provides users with the ability to create custom billers, supplying countless options to build credit swiftly due to the frequency and volume of transactions made. By reporting paid bills to three major credit bureaus, StellarFi surpasses competitors that typically report only to one credit bureau. This allows members to get a credit score that matters — one that would qualify an individual for a mortgage or a bank loan, for example.
Potential to Transform the U.S. Credit Landscape via Financial Literacy
StellarFi also provides members with expert-led financial education through the company’s blog — and through the company’s partnership with the National Foundation for Credit Counseling (NFCC) in Washington, D.C., which provides free financial counseling. NFCC is the largest and longest-serving nonprofit financial counseling organization in the country. Additionally, StellarFi offers free financial education resources on its website via its blog, as well as via social media (e.g., Instagram, LinkedIn, Twitter, Facebook).
"StellarFi has the potential to transform the U.S. credit landscape,” said John Gardner, executive in residence at Acrew Capital and former executive vice president at SoFi Technologies. “Against the backdrop of the country’s highest inflation rate in four decades, StellarFi is committed to helping the 4-in-7 Americans who have no financial literacy and the roughly 65% of Americans who are living paycheck to paycheck. Consumer demand for a solution to bad credit is clear: StellarFi’s waitlist totals more than 40,000.”
StellarFi’s system goes above and beyond companies that simply report an individual’s payment history by reviewing bank statements or rental agreements. StellarFi pays member's bills on their behalf, creating a payment cushion for members that gets reported directly as credit. StellarFi provides a range of payment options and can report almost any bill.
“StellarFi is a public benefit corporation that’s committed to providing accessible financial tools to underserved communities who have been excluded from financial health as a result of an outdated credit system,” said Angela Yee, a founding partner with StellarFi and co-host of The Breakfast Club, a nationally syndicated radio show on Power 105.1. “StellarFi believes everyone is creditworthy. Anyone who pays rent should be able to secure a mortgage. The company’s mission is simple: financial inclusivity. StellarFi is solving the current arbitrary process of accessing capital.”
Public benefit corporations are legally empowered to pursue positive stakeholder impact alongside profit. Because of StellarFi’s public benefit commitment to giving financial access back to its members, the company in May awarded about $70,000 for individuals to pay their bills and provide free access to StellarFi.