A new debit card is about to be launched in the United States and aims to reduce the time and cost the average renter spends on renting.
Xrent is a debit card for tenants who want faster access to the housing ladder. The fintech’s fully automated “rent-to-mortgage” program is designed to direct rent payments towards home ownership.
The startup writes on its website that the program offers the same benefits as a rent-to-own program without being limited to rent-to-own properties.
Xrent says the average US renter will rent for 10-15 years and spend between $250,000 and $500,000.
Instead, the fintech will lay out a planned roadmap to follow in order to receive a mortgage for a desired home within three to five years.
Paying rent with the card also boosts users’ credit ratings thanks to the start-up’s UpiT system. Each rent payment made with the card also entitles the holder to enter a raffle with the chance to win a house, mortgage down payment or one year’s rent.
The startup also provides a security deposit service and says it can also simplify the process of paying rent when living with roommates.
The card’s waiting list is open for registration. No launch date has been confirmed.