Earned offers an innovative way to offer early wage access (EWA).
While employees can get direct access to cash via free ATM withdrawals and ACH bank transfers, unique to Earned is our ability to offer EWA via a credit card.
Credit is immediately available on the EarnedCard when we receive time and attendance data for hours worked. Then on payday, any purchases are deducted from payroll and placed in a reserve account.
These reserved funds are used to pay the credit card bill in full each month.
Designed to improve credit scores
Earned is the only early wage access provider that reports positive credit data to the credit bureaus.
While EarnedCard acts like a debit card, it is a credit card...
...which allows us to offer a cash rebate on EWA and at the same time help employees improve their credit scores. How? Because, building a history of current payments for a credit card will improve a credit score. And, EarnedCard manages card payments to ensure they’re on time.
Don’t confuse the EarnedCard with standard credit cards.
The EarnedCard is not a debt trap and does not have any annual, interest or late payment fees. We are simply using a credit card as a vehicle to dispense EWA and provide the great benefits that are built into this technology. Namely, a revenue stream for Earned and a reportable credit account for the employee (see blogpost: How does EarnedCard do it?).
Why is reporting credit so important?
Credit scores are used in many aspects of life: from getting phone service and being able to rent an apartment, to buying a car or house. It is important to achieve and maintain a good credit score to reduce the interest rate on loans, avoid costly security deposits, and to ensure approval of renting a house or apartment.
Does Earned report to all 3 major credit bureaus?
Yes we do. We report credit history to Equifax, Experian and TransUnion