With so many BNPL (Buy Now Pay Later) apps entering India, people are curious to use its credit facilities.
However, it is often very common that the Credit score of the Indians is very poor as they don’t use credit much.
Astu Credit aims to solve this problem by helping the users build their credit just by making their payments through its app.
The users don’t even have to make a separate bank account or take any loans to improve their CIBIL score.
Let’s review this app and decide whether you should use it for building your credit or not.
What Is Astu Credit?
Astu Credit is an Indian Start-up backed by giant VCs like Titan Capital and Samyakth Capital. The platform solely focuses on building the credit score of the users.
It teams up with big credit bureaus such as Experian, CIBIL, CRIF, and EQUIFAX to improve the credit score of the users.
Rather than creating a new bank account, Astu Credit helps its users make their credit better, just by making payments through their platform. You even get certain offers and discounts with the app.
Meaning behind the word Astu:(Vedic) IPA: /ɐs.tu/; (Classical) IPA: /ˈɐs̪.t̪u/. VerbEdit. अस्तु • (astu). let it be, be it so, okay.
Let’s look at its features in detail.
Features Of Astu Credit
Astu Credit is still in the development phase and is yet to start rolling out all of its features.
However, I will explain all the features that will be coming in the app and how you can make the most of them.
1. Debit Card That Boosts Credit Score
The most revolutionary feature of Astu Credit is that it helps in boosting your credit score with a Debit card.
Yes, you heard it right. All you have to do is make your transactions from the platform of the app or through its debit card that Astu will be rolling out in the future.
Astu claims that your credit score will start improving in three to six months if you continue to use its services for making transactions.
2. Pay Utility Bills
With Astu, you can easily pay your utility bills through its platform.
It sends your payment details to its partner NBFCs, who then carry forward the transaction. All such payments also help in improving the credit score of the user.
You can pay your insurance bills, electricity bills, gas bills, and much more through the platform.
3. Check Your Credit Score (Coming Soon)
You even get to check your credit score with Astu. After entering the relevant details, Astu Credit raises a soft inquiry on your credit history(A soft inquiry does not affect your credit score).
However, this feature is yet to go live on the platform.
4. Cashbacks Up To 10%
By using Astu’s services, you can make your transactions seamlessly while improving your credit.
But, that’s not it. Users are also offered cashback up to 10% on every single transaction for the first 3 months.
5. Connects With Existing Bank Account
If you were thinking that Astu credit will be creating a new account for their services, then it’s not true. Unlike other finance apps, Astu works on your existing bank account.
All you need to do is link it with your Astu Credit account and bingo. You can then work on your credit score without taking any loans or credit and just by making normal transactions.
How Does It Work?
Astu Credit teams up with the top Credit bureaus of the world including Experian, CIBIL, Equifax, and CRIF to help its users build their credit.
It adds up to your bank account on the platform. When you make a payment through the platform, it auto-debits the amount from the bank account.
As a consumer makes a transaction with Astu’s platform, the details of this event are stored by the platform. After one month, all the transactions made by you in the entire month is prepared and the reports are sent to the credit bureaus.
These credit bureaus then evaluate all the financial transactions of the user and add them to their credit history. As the credit history keeps growing with time, the credit score of the users slowly starts increasing.
In a span of 3-6 months, you will be able to see an increased credit score.
This way you don’t have to take up any loans, credit cards, or any other form of credit to build your credit score. It is a completely safe process that involves no risk.
- A user-friendly interface
- The platform is compatible with 127 banks
- Timely offers and cashback for the users
- A debit card for the users
- Offers good privacy and security to the users
- Does not involve any fees
- Offers 10% cashback on every single transaction for 3 months to the top users
- Increase your rank and cashback limit by referring to your friends and family
- Check your Credit Score
- Transparency of all the transactions
- The app is still in the development phase
- Works on an Invite only basis. Every user is not eligible to immediately start using their services
- There are thousands of users, and it only offers credit improvement to the top users which limits its features to the new users
- The credit score feature is yet to go live, which is a setback for the platform
Talking about the features and the working of Astu Credit, it is indeed a revolution in the credit sector. If we closely analyze the Indians, there is still a majority of the people who do not believe in credit facilities. This leads to a poor credit score for the masses.
However, the fact that you can improve it just by making payments through an app seems like a game-changer.
Although Astu promises a lot to its users, it is yet to roll out its debit cards. This makes it difficult to say whether it will be able to run its operations smoothly or not.
If you ask me, I would suggest my readers sign up for the platform as it will help in grabbing early offers and cashback in the future.
Not to mention, Astu Credit is backed by giant VCs like Titan Capital and Samyakth Capital, which increases its credibility by a lot.
What is a credit score?
A credit score is a figure that is determined by your credit history. As you pay your EMIs and clear out your loans, these details are monitored and saved by the credit bureaus. In the future, whenever you need credit, this score acts as a scale to measure your credibility and legitimacy.
What are the benefits of having a good credit score?
There are many benefits that come along with a good credit score. Some of them are as follows:
- Instant Loan approval
- Low-interest rates
- Timely rewards and cashback on your credit cards
- Get longer tenure for your loans
- Higher limit on your Credit card
- Get a discount on your charges and loan processing fees
Are there any charges for using Astu Credit’s Card?
Astu Credit charges no annual fees for its card. There are also no joining fees for a limited time period.
What is a Credit Bureau?
A Credit Bureau is a company that collects the credit history and all the credit transactions of a user and prepares a relevant credit score on that basis. It has its own algorithm to determine the credit score.
This score is later shared with the lenders to help them determine the credibility of the loan applicant.
There are four major credit bureaus in the country:
- TransUnion CIBIL
- CRIF High Mark
Can I use Astu Credit to pay offline?
Yes, you can easily make offline payments with Astu’s Debit Card, which you will receive after signing up for the app.
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