How Bright Can Increase Your Credit Score So if you receive unexpected income beyond your typical paycheck, Bright will put that money towards your debt within just a few days. This isn’t some one-time transfer Bright makes these small transfers constantly (as often as 2-3 days). Here an example of how this could work: Current checking account balance: food and gas) and the minimum checking account balance you should maintain. This is where you’re paying the credit card with the highest APRs first, focusing only on one credit card at a time.īright determines how much to pay towards your credit card accounts by analyzing your checking account balance, upcoming bills, expected non-bill expenses (e.g. Most Bright users come to the app for assistance with paying off debt (and to be specific, credit card debt).īright helps with this by analyzing your existing credit card accounts, including your balances, APRs and minimum payment amounts.īright also has access to your spending habits, and it uses that information to determine how much you should be paying towards your credit card debt (in addition to which credit card debt should be prioritized).īy default, Bright recommends the debt avalanche method to pay off your credit card bills. How Bright Helps You Pay Off Your Credit Card Debt Among those outcomes are paying off credit card debt, increasing your credit score and saving towards short-term goals. To get a sense of how Bright works, it’s best to break down what Bright does to help you achieve specific financial outcomes. If you don’t want the automatic transfers to take place at these intervals (known as Smart Pace) Bright does allow you to choose weekly transfers, transfers each time your paycheck hits, or manual transfers. Once transferred, the money is allocated based on what Bright’s algorithms determine is the highest and best use of those funds based on your financial goals. Money from your existing checking account is transferred to this Bright Stash account every 2-3 days, based on what Bright calculates you can afford. When you create a Bright account, you’re opening an FDIC insured savings account, referred to as Bright Stash. This will help Bright pull better data for your recommendations. After the initial sign-up process is complete, you have the option to link your credit card accounts for real-time syncing. However, the balances shown on your credit report are not updated in real-time. It then pulls your debt balances from your credit report. Tip: Bright asks you to link only your checking account at first. Bright asks about your financial goals during the sign-up process. Then you’ll be asked to link your primary checking account. When you sign up for Bright, you’ll be asked about your goals (either increase your credit score or pay off credit card debt), your gross annual income, your full name and your address. What’s Behind MoneyScience?īright’s AI technology - which powers its recommendations and automates transactions on your behalf - is called MoneyScience. Bright’s growth up through 2021 helped them secure $31 million in Series A funding from Sequoia, Falcon Edge and Hummingbird Ventures. The company was started in 2019 by Avi Patchava and Petko Plachkov. However, users must be comfortable with Bright not only having access to their financial accounts, but also the ability to make transactions on their behalf. This strategy to manage your money is one of the most time-tested and proven strategies available. Instead of waiting until the end of the month and seeing what’s left over to pay down your credit card debt with, Bright sets aside money throughout the month based on what you can afford. Unlike other apps that give you advice about which debt to pay off first or how much to save, Bright goes a step further by automatically withdrawing funds from your checking account and applying those funds to your financial goals.īright’s main focus is on helping you pay down credit card debt, but it can also be used to build your credit score and/or save towards short-term financial goals, such as building an emergency fund.Ī simple way to think of Bright is that it automates the process of paying yourself first. How Bright Helps You Increase Your Savings.How Bright Can Increase Your Credit Score.How Bright Helps You Pay Off Your Credit Card Debt.
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