in consumer applications for financial services
Credit cards can act as a lifeline during lean financial times. An unexpected period of unemployment, a move to a new city, a medical crisis – life happens. But credit cards also entice people to live outside their means without realizing the long-term consequences of their spending.
Many credit card holders mistakenly think they’ll be OK making minimum monthly payments, only to one day realize they’re on the hook for thousands of dollars in interest. Instead of remaining stuck in the revolving door of credit debt, consider taking out an alternative loan to pay off those debts and get back on firm financial footing. Here are the three most compelling reasons we know to drop your credit card debt as soon as possible.
1. Large balances hurt your credit.
Using credit cards for small purchases each month and paying them off right away can boost your credit score because it proves you can manage debt, but large balances do the opposite. Lenders use your debt-to-income ratio to determine whether you are financially stable enough to take on new loans or credit lines. If you’re using more than 30 percent of your available credit and paying only the minimum payments, you appear as a risky borrower and chances of approval drop significantly. Taking a loan to pay off high credit card balances is one way to regain financial control and improve your score. By paying off your high interest debt with a low interest monthly payment loan, you will be back to building positive credit and saving hundreds of dollars in interest, which leads us to number 2…
2. You will likely save money.
Interest rates on credit cards can vary greatly, ranging from anywhere around 11% and skyrocketing up to 79.9% APR. While interest rates don’t affect those who pay off the card balance in full each statement period, they matter to many of us who unfortunately keep an unwanted balance on our credit cards. Interest will accrue on top of your remaining balance at the end of the month and your outstanding debt will increase. This may be a small amount for those with minimal balances, but could add on hundreds of dollars each month for larger sums.
3. Credit card debt spirals quickly.
Having one or two high-interest cards may seem manageable at first. But all it takes is one financial setback to become dependent on those cards and rack up serious debt. It’s natural during significant moments in our lives to incur some amount of debt (emergencies, moving, pregnancy, etc.) But just as important as those moments are, it is equally important during those times not to spend frivolously. “Paying off large credit card balances can really be a challenge, especially if you have multiple cards, payments, and interest rates with no end date in sight,” said Lisa Nestor, research manager at Payoff, a financial empowerment company dedicated to helping people pay off their high-interest credit card balances. Nestor recommends an “organize and optimize” approach to paying down cards, whether that’s using the snowball strategy to manage small debts and work up to the the larger ones, or the laddering method of tackling your highest interest accounts first. Let’s face it, credit cards are a necessity in our lives but they don’t need to control us. Removing high interest debt will not only alleviate a major stressor in your life but can also save you money. It also increases your chances of being able to finance more important milestones – like starting a family, traveling , or buying your first house. Alternative finance is a great option for those who have looming high interest credit card debt. By consolidating your cards into a potentially lower interest rate could save you money, help you save for the future, and build positive credit. However, this method may not be for everyone, it is important before taking out a loan to research the right course of action for your situation.
Disclaimer: The material provided on this site is not intended to provide legal, investment, or financial advice or to indicate the suitability of any Even Financial product or service to your unique circumstances. For specific advice about your unique circumstances, you may wish to consult a qualified professional. Any information or statistical data sourced by Even Financial through hyperlinks, from third-party websites, are provided for informational purposes only. While Even Financial finds these sources to be accurate, it does not endorse or guarantee any third-party content
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Goldman Sachs-backed Even Financial, a digital matchmaker between banks and customers, just bought an insurance startup as life insurers are seeing policy applications boom
Even Financial has acquired LeapLife, a leading insurtech platform. The addition of LeapLife allows Even to immediately commence its insurance capabilities, aimed at simplifying and enhancing the way consumers search, compare, and get matched with insurance policies (LeapLife’s existing platform will continue to operate from leaplife.com). Business Insider wrote an article about it, interviewing our CEO and Founder Phill Rosen.
Even Financial Launches Insurance Offerings With Strategic Acquisition of LeapLife, a Leading Insurtech Platform
Pioneering B2B Fintech Expands its Industry-Leading Financial Services Monetization Platform to Help Insurance Carriers Find and Connect with Consumers New York, New York – April 22, 2020 – Even Financial (Even), the leading API for financial services search, acquisition, and monetization, announced today that it will be launching services for the insurance industry through the acquisition of LeapLife, an insurtech platform and digital life insurance agency. The addition of LeapLife allows Even to immediately commence its insurance capabilities, aimed at simplifying and enhancing the way consumers search, compare, and get matched with insurance policies (LeapLife’s existing platform will continue to operate from leaplife.com). Even and LeapLife now offer the only full end-to-end, multi-carrier digital life insurance marketplace experience. Over the coming weeks, Even will further integrate LeapLife’s technology and insurance offering into its industry-leading API, making turnkey insurance marketplaces programmatically available to a vast network of channel partners — when and where their consumers are most in need — while also enabling the company to expand to other insurance sectors, including homeowners, renters and auto insurance. This adds to Even’s peerless breadth of real-time, personalized financial product offers — an expansive suite that already includes loans, savings, credit cards, and more. “Even’s goal to evolve how financial institutions find and connect with consumers is not limited to loans or credit cards, but applicable to all financial products and services, including insurance,” said Phill Rosen, Even Founder and CEO. “Despite its importance, purchasing life insurance is often an overwhelming and inconvenient experience. With more than $600 billion in premiums paid each year, and only 6% of policies sold completely online, we see tremendous opportunities to help modernize the life insurance industry and offer solutions that solve challenges for consumers and carriers alike.” LeapLife is an established insurtech platform and digital life insurance agency that utilizes data science, deep underwriting knowledge, and proprietary technology, enabling consumers to apply for instant-decision life insurance policies with real-time quotes. LeapLife works with many best-in-class insurance carriers to offer consumers a seamless experience from beginning to end. This approach made Even and Leaplife a perfect match. As a digital insurance broker, LeapLife offers personalized life insurance recommendations based on a consumer’s unique needs. Paired with the Even API, which enables customer acquisition for insurance to be native and programmatic, consumers benefit from a more streamlined, transparent, and highly personalized experience when shopping for life insurance. Just as Even’s 2018 acquisition of Birch (the award-winning credit card rewards app) allowed the company to accelerate its expansion into credit cards, the addition of LeapLife will similarly put Even at the forefront of consumer insurance offerings. Charles Svirk of MassMutual Ventures, an investor in Even, said “The Even and LeapLife teams share a vision that the future of insurance acquisition will rely on the power of data-driven, programmatic distribution. We are thrilled to support them as their industry experience, impressive technology, and trusted relationships will help scale Even’s insurance offering and build partnerships to provide these critical innovations in insurance acquisition.” The Even API and platform solve significant, long-standing pain points in financial services acquisition by seamlessly connecting supply and demand. Even has continued its rapid growth trajectory in 2020, surpassing over $1.5 billion in credit issued through its API and expanding its platform to over 400 partners. Even has secured over $55 million in funding from major financial institutions, venture capital firms, and fintechs to back its goal to evolve the financial services acquisition ecosystem. About Even Financial Founded in 2015, Even Financial is a B2B fintech company that is transforming the way financial institutions find and connect with consumers. By seamlessly bridging financial institutions (including American Express, Goldman Sachs, and SoFi) and channel partners (such as TransUnion and The Penny Hoarder) via its industry-leading API, Even turns any consumer touchpoint into an ROI-driven, fully customizable, programmatic acquisition source for financial product offers with full compliance, security, and scale across loans, savings, credit cards, insurance, and more. Even is backed by leading financial services firms and VCs including American Express Ventures, Canaan Partners, Citi Ventures, F-Prime Capital (Fidelity), Greatpoint Ventures, Goldman Sachs, LendingClub, and MassMutual Ventures. Even is the leading search, comparison, and recommendation engine for financial services. Media Contact: firstname.lastname@example.org
Even CEO/Founder Phill Rosen quoted in Protocol Braintrust Newsletter
Our CEO and Founder Phillip Rosen was included in the most recent Protocol Braintrust newsletter along with answers from some thought leaders from Plaid, Slack, and DuckDuckGo!