Who Should Float You?
Why would you choose a “trustworthy”, longstanding institution, rather than a game-changing, new financial platform? Well, why would you stand on the corner waiting for a cab when you can order a competitively-priced ride to your exact location? You wouldn’t.
“With the proliferation of smartphone technology and the emergence of on-demand services, it didn’t make sense (to us) that a quick and easy way to access extra money didn’t exist,” Float co-founder Kevin Bass explains of his and business partner Max Klein’s journey to founding Float.
“The banking industry has become overly complicated with unnecessary rules and fees that have caused many people like you and me to avoid these institutions and their products all together. Let’s be honest, when was the last time you’ve heard someone rave about their bank to friends or post to Facebook about how happy they are with their financial institution? Most likely never. That’s what’s missing in this industry, a banking platform that people are proud to be apart of.”
The intention of Float is to revolutionize the way we consider banking. From instant lines of credit to transactions and transfers, Float wants to be our go-to banking application.
We’ve all heard about “our generation’s need for instant gratification,” a synopsis that signifies lazy-self-righteousness. In reality, this evolution of our expectations has enabled great efficiency. Float exemplifies just that, the most time- and cost-efficient way to utilize money. In minutes, the app analyzes your monthly finances and approves an affordable line of credit. At typical banks, the application process is between 10-30 minutes. Often, there is then a 24-hour period to determine if you’re approved. Another 7-14 days pass before the card arrives in the mail.
Float not only provides freedom from these cumbersome processes, it offers a low-risk option to building credit. From Occupy Wall Street to Feeling the Bern, our generation’s rejection of financial traps has echoed nationwide. It’s more than apparent our peers are credit-weary.
Without credit, it’s hard to get credit. Once you do access credit, strong credit takes time and willpower. Float is the solution, offering lines of credit that range between $50 and $1000, interest-free, without relying on your FICO score. Float also reports your payment relationship to the credit bureaus, helping you build credit history over time. The lowest opening line of credit on bank cards is $500, if not more. Float doesn’t want you to borrow more than you can afford.
The process is simple and straight-forward. The billing cycle is 30 days; after that, you have 21 days to pay back in full. There is no APR or annual fee. There is no accrual of interest. There is no balance to carry over. Transfers under $50 are charged a flat rate of $2.50. A 5% fee is applied to transfers over $50.
Riddled in the small text of the thick packets banks handout with new accounts lies disconcerting facts. Their financial products target and mislead consumers with “18 months interest-free”, cash-back deals and travel mileage plans. After those 18 months, the APR jumps anywhere from 13-24%. The cash incentives only count at specific places during certain times. And, it’s nearly impossible to earn enough flight mileage to go anywhere before the rewards expire. Plus, almost all checking accounts, savings accounts and credit cards have annual fees, high transfer fees and limits on transfers.
There is simply no comparison. Float’s transparency and terms do not exist elsewhere in the banking industry. Hello Float.
Opinions belong to contributing authors, not to Float, Inc. or Float Credit, Inc. Please consult your financial adviser or investment adviser regarding your individual financial and investment decisions. This blog is intended for educational purposes only and should not be construed as investment or tax recommendations.