Fea - Credit Card

Currently crowdfunding on crowdcube, some of you may be interested.

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Yep, I’ve already pledged to invest, looks very interesting.

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I love these discussions lol

https://www.crowdcube.com/companies/fea/pitches/qBP1pZ/discussions

I see they’re launching on iOS only… any interest I may have had is immediately gone.

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The company aims to generate revenue via a fixed monthly subscription, with no other fees. The pricing will be set to the customer’s credit limit, divided by 100. For example, if the customer’s credit limit is £1000, their monthly subscription cost will be £10.

Is this some sort of joke? I’m out.

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Hi @Anzo. Fea founder here. Not sure where you got that from.

Here is how our pricing works in one sentence: we charge a fixed fee from consumers which is £2 in fee for every £100 that you borrow, with no other fees.

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To add:

  1. There is no compounding. So if you owed 2 pounds in fees from last month, even if you don’t pay it off, the fee won’t ‘grow/compound’.

  2. There are no late fees etc. As I said, no other fees apart from what’s mentioned above.

  3. There is no grace period. You pay a fee of 2 for every 100 you borrow, starting from day 1. So at end of month 1 if your average balance was 100 during the course of the month, you pay 2£ in fees.

You’ll be able to link it to your Monzo account so you can zap money over from Fea to Monzo by simply pushing a button.

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Hi Faisal :wave:

Are you planning to offer cards to people with a lower income level or poorer credit rating?

Thanks for dropping by, Faisal! :tada:

If I spend £99 in my first month, I assume I will owe £2 in fees? So £101 would mean £4 in fees?

Also, will there be fees if the bill is paid in full at the end of the month like conventional credit cards?

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Yes to lower income level and yes to people with little or no credit history (e.g. ‘millennials’ or recent migrants).

Poor credit history - that would be tough for us, though we do want to give everyone a chance to start somewhere - so if you really do have a poor credit history we’d try to start you off with a really low credit limit (really low, literally 10-50 pounds) to help you rebuild your history, rather than deny you outright.

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I got it from here.

Hi @HoddzDJ, no it will be prorated, so for for example. £99 spend in first month it will be (2)(99/100) = £1.98 in fee

Its a bit different from traditional credit cards in that you will pay the fee even if you pay in full at month end.

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Thanks for clarifying :grinning:

Hi @Anzo. I see. I don’t know who business agent is, please use the docs on Crowdcube website for accurate info. Sorry for any confusion caused.

Hi Faisal,

Thanks for coming on :grinning:

So if I bought something for £1,000, and then paid off the balance straight away, what would my fee be?

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Hi @faisal_from_fea
I’m trying to get some context to your proposed product. It’s difficult to do that with what little information is available on Crowdcube.

I see you’ve responded to three questions there and there’s interest here. Do you plan a more coherent forum where you can share the product ideas?

Hi @nickh, assuming you paid off the balance straight away / brought your balance down to 0 again within 72 hours, then you pay no fee. We will have a grace period of 3 days because otherwise it just gets a bit silly to calculate fees <£1.

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Hi @HoddzDJ, please see reply above.

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Hi @Demmedelusive yes, we are working on a Q&A page / forum now, it should be live in the next 2 days. Will post a link here once its ready.

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