Intuit has agreed to buy SeedFi, the financial health startup behind Credit Karma's Credit Builder feature. Terms of the deal were not disclosed.
SeedFi is one of several fintech outfits targeting the huge swathe of Americans stuck in a cycle of debt and with little or no savings.
Last year Credit Karma - which Intuit acquired in a multi-billion dollar deal in 2020 - began offering members SeedFi's Credit Builder product, providing a line of credit and a secured savings account to build up both credit and savings.
Through this partnership, members increased their score by an average of 21 points in as little as 30 to 45 days and built up over $10 million in savings, says Intuit.
Intuit says that by combining SeedFi’s Credit Builder technology with Credit Karma’s long standing relationships with credit bureaus and others in the ecosystem, it will be able to move with greater speed and scale to help members.
Poulomi Damany, SVP and GM, Credit Karma Money and Tax, says: “We have long standing relationships with credit bureaus and others in the credit ecosystem, and SeedFi has built great technology, so when combined, we will move even faster and build products to help more members, including those who need it the most.”