When applying for a credit card, banks carefully assess the applicant’s financial history. This analysis is necessary to ensure that the consumer is able or not to approve the card. However, during a pandemic, many financially deprived people who need credit cannot afford this service.
Thinking about it, then Nubank Issued an unlimited pre-approved credit card with many benefits to this group. However, the method is still in the testing phase and has not been released to all fintech clients.
According to Nubank’s CEO, Christina Junqueira, who is currently in Brazil, there are more than 60 million people who cannot obtain approval for any type of credit, due to a “dirty name” or lack of financial track record in the country’s main consulting systems.
How does the unlimited pre-approved card work?
Immediately after purchasing the service, a Nubank customer will receive a credit card with no pre-approved limit. To use it, it is necessary to make a deposit into the application account, in the “Add a limit” option.
When the value is added to the account, it is transferred to the maximum card limit, and is available for online, face-to-face purchase. That is, the amount deposited will be the credit limit in the instrument. In this sense, if the customer deposits 300 R $ into the account, and during the month spent only R $ 250, after the bill is due, he will have a new limit of R $ 50, which gives the remaining amount from the previous limit.
It is worth noting that the deposits are unlimited, as the customer has the independence to add funds as many times as he wants in the account he owns. In this way, traditional fintech account services will be launched, allowing customers to enjoy benefits, such as controlling purchases made with the card.
All actions are done through the Nubank app available for Android and iOS phones.