SANTA MONICA, Calif.--(BUSINESS WIRE)--Grow Credit, a financial inclusion platform committed to building credit and improving credit scores, has developed a new and first-of-its-kind approach to help Americans fulfill their dreams of car ownership while building credit.
Grow Credit’s new "Grow & Drive" initiative provides consumers who are denied a car loan the opportunity to develop their credit score in conjunction with the automotive dealership.
According to Bankrate data, 21 percent of consumers were turned down for a car loan in 2020. To address this issue, Grow Credit has created an initiative for car dealerships to help those rejected for automotive financing loans to build a path to car ownership.
Murphy Auto Group, a Florida-based automotive dealership which owns and operates five franchised automotive dealerships in Florida, Georgia, and South Carolina, is the first dealership in the U.S. to work with Grow Credit on this initiative.
“With car financing APRs approaching pre-2018 levels, car ownership is more attainable than ever, but having to turn away a consumer because of a low credit score is something we never want to do,” said Murphy Auto Group Owner Michael Dennis Murphy. “With Grow Credit’s 'Grow & Drive' initiative, we’re able to provide a viable path to car financing that sustainably builds a customer’s credit. We believe in this product and are super excited by this partnership.”
When an applicant is denied financing on a car loan, they are referred to Grow Credit where they can choose one of five memberships, designed to raise their credit scores. Grow Credit offers five memberships, including a free plan, a $1/mo credit builder plan for college-age students, and a $1.99/mo secured membership.
After obtaining their target credit score, Grow Credit re-engages with consumers to inform them of their financing eligibility status. As an added incentive for enrolling in Grow Credit, participating dealerships may extend a rebate of up to $200 for financing to consumers. The customer can then return to the dealership to secure their financing and drive home in a new car.
Grow Credit helps consumers boost their credit score by leveraging their monthly subscription payment habits with over one hundred supported subscriptions.
“There’s never been an initiative like this that helps both the car buyer and automotive dealership. It’s mutually beneficial for a new car buyer and the dealership that the buyer has a good credit score and feels confident in their purchase. By helping consumers attain a good credit score they can get access to financial products like car loans and credit cards with lower interest rates and better rewards,” said Grow Credit Founder and CEO Joe Bayen.
Grow Credit has been especially popular with those with no credit or poor credit, who want to establish a credit history without the risk of taking on debt. While traditional cards rely on a hard inquiry on your credit reports, with Grow, a soft credit check for identification purposes is only needed, which won't affect one’s credit score. On average, users have increased their score by 51 points after a year of ontime payments when using Grow (individual results will vary). On the free membership, the platform reports a $204 line of credit to Equifax, Experian, and TransUnion, allowing Grow Credit users to demonstrate a positive repayment history to build credit.
For financing institutions seeking to help their customers and potential customers boost their credit scores and build financial security and inclusion, please email Grow Credit at partnerships@GrowCredit.com or sign up at www.GrowCredit.com/Partnerships.
About Grow Credit Inc.
Grow Credit’s innovative credit building service lowers the barrier of entry for millions of Americans who need to establish and build credit. Combining a small-dollar loan with a virtual Mastercard, the service manages subscription payments, such as Netflix, and reports loan balances to the credit bureaus. The MasterCard is issued through Sutton Bank and is exclusively designed to pay subscription payments. Grow Credit is based in Santa Monica and was founded in 2018 by financial industry veterans. For more information, visit GrowCredit.com.