While Mark Cuban may be a ‘benevolent pill merchant’ - providing low-income Americans with cheap prescription drugs, the ‘Shark Tank’ billionaire just helped raise $50 million for a Series B round in a Dallas-based financial technology firm that lets people with terrible credit scores tap into the equity in their depreciating used cars at a 30% interest rate - even if it’s not paid off - in which case the entire auto loan is transferred).
Founded in 2021, the company will use the funding to build an AI-powered digital bank that will decrease onboarding and operating costs - allowing them to focus on “opening doors for underserved Americans.” The company says that there’s more than $4 trillion in "untapped assets held by nonprime Americans.
And we WANT IT ALL!
Consumers with credit scores that hover at or below 600 don’t have many options to access credit. There are costly payday loans, with their exorbitant annual interest rates, and not much else.
Jordan Miller, a Texas-based entrepreneur, is proposing an alternative in the form of a credit card with a fixed interest rate of 29.88%, capped at $10,000 and secured by a vehicle whether it’s fully paid off or not.