Intuit, a developer of multiple leading FinTech services, has acquired SeedFi, which is the partner behind Credit Karma’s Credit Builder solution.
Intuit is the global technology platform behind tax software TurboTax, accounting tool QuickBooks, email automaton service Mailchimp, personal finance app mint and credit scoring service Credit Karma.
The Credit Builder solution helps low, or no-credit borrowers build credit while saving money. It offers a line of credit and a secured savings account enabling members to build their credit while building up savings.
By combining SeedFi’s Credit Builder technology, with Credit Karma’s relationships with credit bureaus and others in the credit ecosystem, Intuit hopes to move with greater speed and scale to help Credit Karma members make financial progress.
Late last year, Credit Karma entered a partnership with SeedFi to offer Credit Builder to its members. This enabled clients to make regular payments, starting from $20 per month or $10 per paycheck. By reporting these payments to the credit bureaus, members took steps toward improving their financial health.
The duo claims this partnership helped members increase their credit scores by an average of 21 points in 30 to 45 days. This acquisition will accelerate the development of this service.
Credit Karma SVP and GM Poulomi Damany said, “Credit Karma Money was built to change consumers’ relationship with money and help them develop responsible financial habits, like staying on top of their bills and spending within their means.
“With Credit Builder, we are able to differentiate ourselves as one of the best accounts for building credit. We have long standing relationships with credit bureaus and others in the credit ecosystem, and SeedFi has built great technology, so when combined, we will move even faster and build products to help more members, including those who need it the most.”
Credit Karma was recently hit with a $3m fine from the FTC for ‘tricking’ Americans with supposedly false ‘pre-approved’ credit offers.
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