Mark Cuban-Backed Subprime Card Startup Raises $50 Million

A subprime credit card startup backed by Mark Cuban has raised $50 million in funding. The company aims to provide credit access to consumers with credit scores below 600, a demographic that typically has limited options beyond high-interest payday loans. The startup's approach involves using alternative data sources, such as utility bills and rent payments, to assess creditworthiness, rather than relying solely on traditional credit scores. This allows them to offer credit products to individuals who might otherwise be denied by traditional lenders. The $50 million in funding will be used to scale the company's operations and expand its product offerings. The startup's goal is to provide affordable and accessible credit solutions to underserved consumers, helping them build their credit profiles and achieve financial stability. The investment by Mark Cuban, a well-known entrepreneur and investor, reflects the growing recognition of the need for innovative financial services that cater to the needs of individuals with limited credit history or low credit scores.