Arro Announces $10M Seed Funding to Democratize Credit

Arro is transforming the lending industry by giving consumers of all backgrounds access to low-interest credit with the ability to responsibly expand their credit while they learn, save, budget and set goals.

LOS ANGELES, October 11, 2022 /PRNewswire/ — los Angeles-based fintech company Arro ( today announced the closing of $10M in seed funding led by Crosslink Capital with participation from Bling Capital, BAM Ventures, Global Founders Capital and WTI, among others. These investors have previously backed companies like Chime, Facebook, Honey, and NerdWallet.

Arro is a lending platform that enables US consumers to improve their credit scores through financial literacy training and behavioral incentives. Arro aims to approve nearly every US consumer for their low-interest credit card, regardless of credit history, based on income and other alternative data.

By using a proprietary underwriting model rather than relying on credit ratings, Arro disrupts the traditional FICO system and provides fair access to consumers who would not otherwise qualify. Arro’s customer-centric approach and partnership with Equifax has resulted in a special no-hard credit request label, meaning that applying for a Arro card does not affect a person’s creditworthiness.

Also Read :  Marathon Digital Holdings Announces Bitcoin Production and Mining Operation Updates for September 2022

Through a gamified app experience, users can increase their credit lines and lower interest rates by engaging in personal finance activities on responsible credit stewardship, meeting savings goals, budgeting effectively, and more. While most lenders only look to a person’s past, Arro focuses on the present to make consumers successful and empower them to manage a growing line of credit.

“A lot of financial institutions make money by people overspending or borrowing,” he says Ryan Duitch, co-founder and CEO of Arro. “Arro is the only lending platform that addresses one of the root causes of financial distress: financial literacy. While many finance apps cover up short-term symptoms of debt and capitalize on high interest rates and hidden fees, we’re proud that Arro does something transformative: we focus on building knowledge and habits to heal people’s relationships with money for life .”

According to a. 72% of Americans have some or very little trust in financial institutions Gallup Opinion poll.

“The majority of consumers are wary of lenders, not just those with bad or no credit,” he says Luke Pelullo, co-founder and COO at Arro. “Over 150 million people are excluded from mainstream credit and the truth is lenders are incentivized to encourage over-leveraging. We are truly turning the predatory lending model on its head and putting consumers and their financial health first.”

Also Read :  TITAN MACHINERY INC. : Change in Directors or Principal Officers, Financial Statements and Exhibits (form 8-K)

Arro believes everyone deserves fair access, but Americans with low or no credit scores face a different reality:

  • 53% of Americans have been rejected for a credit card or loan because of poor credit.

  • Borrowers with a “reasonable” credit rating pay twice as much interest as borrowers with a “very good” rating.

  • Between interest rates and fees, APRs can be as high as 700% on several loan products.

“Many American families have been locked out of the financial system for far too long because various factors have negatively impacted their creditworthiness,” he says Chris Campbell, Arro advisor and former Assistant Secretary of the US Treasury Department. “This lack of access to basic credit is having a dramatically negative impact on their daily lives. That reality needs to change, which is why I’m proud to be part of the solution at Arro that will not only unlock a system you’ve been working with but will also teach you the tools to spend, save and pay wisely .”

Also Read :  ‘I just started renting my house out on Airbnb’: What income-tax deductions can I claim on this property?

Rather than just being an issuing card, Arro takes an active role in improving the financial well-being of its members through education, goal setting, credit building, and other positive financial habits.

“Arro is completely unlike any other financial app on the market,” he says David Silberman, Partner at Crosslink Capital. “Most importantly, Arro provides opportunities and helps Americans become financially healthier.”

About Arro

Founded in 2021, Arro ( is a los Angeles-based fintech company democratizing access to credit. Arro offers a low-interest credit card and financial literacy app that enables consumers to expand their lines of credit on more favorable terms while building personal finance skills that make them successful. By using alternative data to authorize consumers, Arro is able to provide credit to millions of Americans excluded from the mainstream financial system, paving the way to a financially healthy future.



View original content:



Leave a Reply

Your email address will not be published.