DiscoverWSJ Your Money BriefingHow Credit-Builder Cards Let Customers Boost Their Score Without Debt
How Credit-Builder Cards Let Customers Boost Their Score Without Debt

How Credit-Builder Cards Let Customers Boost Their Score Without Debt

Update: 2024-08-30
Share

Digest

The podcast delves into the world of credit builder cards, a new type of financial product offered by fintech companies like Chime Financial and Credit Sesame. Unlike traditional credit cards, these cards don't involve borrowing or repayment. Instead, they operate like debit cards, with purchases reflected as credit. The podcast discusses the potential benefits and drawbacks of credit builder cards, including their ability to boost credit scores and the scrutiny they're facing from regulators. The podcast then shifts focus to the importance of processing speed for AI applications. It introduces Oracle Cloud Infrastructure (OCI) as a solution, highlighting its ability to provide a single platform for infrastructure, database, application development, and AI needs. OCI is presented as a cost-effective solution for businesses like Uber, 8x8, and Databricks Mosaic, enabling them to develop and deploy AI solutions more efficiently.

Outlines

00:00:15
Credit Builder Cards and Fintech Innovation

This segment explores the rise of credit builder cards offered by fintech companies like Chime Financial and Credit Sesame. These cards differ from traditional credit cards in that they don't involve borrowing or repayment. Instead, they operate like debit cards, with purchases reflected as credit. The segment discusses how these cards work, their potential benefits and drawbacks, and the scrutiny they're facing from regulators.

00:07:59
Oracle Cloud Infrastructure: Powering AI with Speed and Efficiency

This segment highlights the importance of processing speed for AI applications and introduces Oracle Cloud Infrastructure (OCI) as a solution. OCI is presented as a single platform for infrastructure, database, application development, and AI needs, offering cost-effective solutions for businesses like Uber, 8x8, and Databricks Mosaic.

Keywords

Credit Builder Cards


Credit builder cards are a type of financial product offered by fintech companies that aim to help consumers improve their credit score. Unlike traditional credit cards, they don't involve borrowing or repayment, but rather operate like debit cards, with purchases reflected as credit.

Fintech


Fintech refers to the use of technology to automate and improve financial services. Fintech companies are disrupting traditional financial institutions by offering innovative products and services, such as credit builder cards, mobile payments, and robo-advisors.

Credit Score


A credit score is a numerical representation of an individual's creditworthiness, based on their borrowing and repayment history. It is used by lenders, landlords, and employers to assess an individual's financial reliability.

Oracle Cloud Infrastructure (OCI)


Oracle Cloud Infrastructure (OCI) is a cloud computing platform offered by Oracle that provides a wide range of services, including infrastructure, database, application development, and AI. It is designed to offer high performance, scalability, and security for businesses of all sizes.

AI (Artificial Intelligence)


AI refers to the simulation of human intelligence processes by computer systems. AI applications are becoming increasingly prevalent in various industries, including healthcare, finance, and transportation.

Processing Speed


Processing speed refers to the rate at which a computer system can execute instructions and process data. It is a crucial factor for AI applications, as they require significant computational power to perform complex calculations.

Q&A

  • How do credit builder cards differ from traditional credit cards?

    Credit builder cards don't involve borrowing or repayment like traditional credit cards. They operate like debit cards, with purchases reflected as credit, and are often tied to a bank account through partnerships between fintech companies and banks.

  • How do credit builder cards help boost credit scores?

    These cards work by reporting on-time payments to credit bureaus, even if the user is not borrowing money. Some cards also allow users to deposit money into an account, which is then reported as credit, effectively \"gaming the system\" to improve scores.

  • What are the risks associated with credit builder cards?

    One risk is that credit scores might be inflated without accurately reflecting consumer behavior, potentially leading to consumers taking on more credit than they can handle. Additionally, while these cards aim to make negative credit activity less likely, it's not completely impossible.

  • Why is processing speed crucial for AI applications?

    AI algorithms require significant computational power to process large amounts of data and perform complex calculations. Faster processing speeds enable AI applications to run more efficiently and deliver results more quickly.

  • How does Oracle Cloud Infrastructure (OCI) benefit AI applications?

    OCI provides a powerful and scalable platform for AI applications, offering high-performance computing resources and specialized AI tools. This allows businesses to develop and deploy AI solutions more efficiently and cost-effectively.

Show Notes

Credit-builder cards from companies like Chime Financial and Credit Sesame are promising customers a higher credit score without ever borrowing or paying back any money. Wall Street Journal reporter Gina Heeb joins host J.R. Whalen to discuss how these cards work. 




Sign up for the WSJ's free Markets A.M. newsletter


Learn more about your ad choices. Visit megaphone.fm/adchoices

Comments 
In Channel
loading

Table of contents

00:00
00:00
x

0.5x

0.8x

1.0x

1.25x

1.5x

2.0x

3.0x

Sleep Timer

Off

End of Episode

5 Minutes

10 Minutes

15 Minutes

30 Minutes

45 Minutes

60 Minutes

120 Minutes

How Credit-Builder Cards Let Customers Boost Their Score Without Debt

How Credit-Builder Cards Let Customers Boost Their Score Without Debt

The Wall Street Journal