Credit Sesame Launches Credit-Building Debit Card

Credit Sesame has unveiled a new product that aims to help individuals build and enhance their credit scores through their everyday debit purchases.

The new Sesame Credit Builder is a Mastercard debit card designed to eliminate obstacles for those with limited credit history and equip them with the tools to establish a positive payment history, the financial wellness platform said in a Wednesday (Aug. 16) press release.

Unlike traditional secured credit cards, Sesame Credit Builder does not necessitate a credit check, an initial security deposit or any interest charges. Users can simply make purchases or pay bills with their debit card and earn the credit that makes it easier for individuals, particularly those with low or limited credit history, to develop a stronger credit history.

Enrolling in Sesame Credit Builder takes only a few minutes, enabling individuals to commence building their credit immediately, the release said. The card is free to use, although fees may apply to the Sesame Cash account.

By utilizing their debit card for everyday expenses such as coffee, phone bills, utilities and subscriptions, users can establish a positive payment history. Credit Sesame said individuals with a positive credit payment history have experienced an average credit score increase of 35 points.

Credit Sesame Founder and CEO Adrian Nazari noted the significance of a good credit history for everyone’s financial well-being. For the nearly two-thirds of U.S. households living paycheck-to-paycheck and relying on credit for day-to-day expenses, a good credit history is essential, Nazari said.

Mastercard has partnered with Credit Sesame for the launch of Sesame Credit Builder, according to the press release.

Tim Montgomery, senior vice president of digital partnerships, North America at Mastercard, said that creating pathways for financial security and access is fundamental to Mastercard’s mission. Montgomery said he sees the Sesame Credit Builder as a tool that can empower consumers to take control of their own financial well-being and enhance their credit.

Underbanked consumers who have been forced to reside at the margins of traditional finance, without access to the financial system and traditional products, have had to rely cash, check cashing or prepaid cards, Nazari told PYMNTS in an interview posted in November 2021.

“In order to get a loan, you have to have credit,” Nazari said at the time. “It’s difficult for many individuals to enter into the ‘system’ and be recognized.”