This press release originally appeared on PR Newswire, September 17, 2015.
SimplyCredit, a financial technology startup, today announced the company raised $1.5 million to build a new credit product that allows consumers to refinance their existing credit card debt at lower rates using a one-stop payment management platform. The series Seed round was led by XSeed Capital and Blumberg Capital, with additional capital coming from private investors.
SimplyCredit customers will be issued a new line of credit, at simple interest, to pay off existing and newly occurring credit card balances. Through the payment platform, SimplyCredit will make monthly payments directly to credit card companies on behalf of their customers, consolidating balances into a single revolving line at one low interest rate. Customers in turn make a single monthly payment to SimplyCredit and the revolving line. SimplyCredit’s customers retain all of the conveniences and rewards their credit cards provide while avoiding the fees and complicated — even predatory — terms. Key features of SimplyCredit’s product include no fees of any kind, no penalty pricing and simple interest rates (versus the industry-standard compounding interest).
“The credit card companies’ only real innovations over the last few decades have been around finding ways to make more money from consumers,” says Karthik Sethuraman, co-founder and CEO of SimplyCredit. “Credit card companies have mastered the art of keeping people in debt forever. Conventional wisdom says that you have to take out a personal loan and cut up your cards, which just doesn’t work in practice. That’s why we are introducing a new product that not only offers lower rates with fair and transparent terms, but is squarely aimed at helping consumers break free from their onerous credit card obligations without giving up their cards.”
While SimplyCredit will focus on consumers with good credit scores to start, those with less than stellar credit can still get access to the payment platform. For these customers, SimplyCredit will optimize their credit card payments using an algorithm designed to minimize interest charges and improve credit scores.
“Despite recent regulation, credit card terms are still often unfair, complicated and opaque, and consequently, exploit consumers,” said Michael Borrus, founding General Partner of XSeed Capital. “More regulation isn’t the solution. Rather, innovative services like SimplyCredit permit consumers to manage their credit transparently and effectively, or to get out of debt, without giving up on the cards and rewards they love.”
The SimplyCredit service is available today through an invitation-only program. To request an invitation, visit www.SimplyCreditInc.com.
About SimplyCredit
SimplyCredit is transforming credit to be fair and transparent by introducing a new credit product. Through the SimplyCredit platform, a user’s credit cards will be paid off in full, automatically, every month, consolidating the debt into a single line of credit with a single monthly payment. There are no fees and no penalties — just one low rate at simple interest. Our mission is to give consumers the fairest terms possible with a seamless, exceptional experience. Learn more at www.SimplyCreditInc.com.