Forget Traditional 'Buy Now, Pay Later': This Startup Says There's a Better Way to Build Credit
DiMarco says part of the problem is how the credit system itself is designed.
"It's not able to be innovative," he told Benzinga, adding that the way banks price and fund credit products leaves little room for new models that reward responsible behavior. In other words, people can make consistent, on-time payments but still not see those good habits reflected in their credit scores.
A Certified B Corporation With a Mission
Perpay said it recently became the only credit-building Certified B Corporation in the U.S. This distinction is given to businesses that meet high standards for social and financial responsibility.
DiMarco told Benzinga the company's focus has always been on helping everyday workers, not just those with perfect credit scores.
"There are working middle class, that's what they are," DiMarco said. "It's those who work for Marriott, Walmart, Amazon. They work for the United States Postal Service. They're America's working class...That's who we're helping."
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Becoming a Certified B Corporation is a major step for Perpay. The certification is awarded by nonprofit B Lab and measures a company's impact on workers, customers, and communities. To qualify, businesses must score at least 80 points on a detailed assessment of their social and environmental practices; Perpay's score was well above that threshold.
For DiMarco, the certification is proof that businesses can grow while still doing good.
"We try to strive for great, which means every additional customer that we add, we are increasing our impact at no sacrifice to the customer," DiMarco said. "Our customer charges are going down every year, and that's why we feel like we're in a really good sweet spot and have a real ability to really help a lot of people."
Rethinking Credit for Everyday Americans
DiMarco hopes that one day, the credit system will evolve to recognize companies that reward responsible financial habits instead of punishing consumers for trying something new.
For now, Perpay's model is offering an alternative for millions of Americans who might not qualify for traditional loans or credit cards but still want to build financial stability.
For working families trying to get ahead — not just get by — that balance could make all the difference.
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This article Forget Traditional 'Buy Now, Pay Later': This Startup Says There's a Better Way to Build Credit originally appeared on Benzinga.com
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