Established in Oakland, California by three finance professionals who saw the need for a better solution to the current credit card system, Grain is a mobile app that offers digital revolving lines of credit. But instead of relying solely on your credit rating, the platform considers your cash flow when generating your credit offer. Grain is currently available on the App Store for anyone with a U.S. checking account.
What is Grain?
Grain is a credit card alternative that syncs with your existing debit card. The line of credit you receive can be accessed through your debit card with instant transfers, and you can use the funds to make payments or everyday purchases.
How Does Grain Work?
Here’s a simple breakdown of how Grain works:
- Step 1: Download the mobile app. Grain works with over 10,000 banks.
- Step 2: Sync your existing checking account with Grain. You’ll receive a pre-approval for a line of credit with no impact on your credit score within minutes.
- Step 3: Instantly transfer funds from your digital credit line and use your current debit card to make purchases.
You can make real-time transfers from your revolving line of credit to your checking account. Doing so allows you to borrow the funds you need to make purchases right away if you’re running low on cash.
Grain customers are enrolled in Auto-Pay from inception. But instead of the funds being pulled from your account on your due date, Grain analyzes your cash flow and drafts your minimum payment on a day that’s most convenient for you (prior to the due date). You can opt out of Auto-Pay and manually make the minimum monthly payment by the due date to avoid a late payment penalty.
You can view your current credit score on the Profile tab of the Grain app. It’s updated monthly, and you’ll also find credit tips on the profile tab of the app to help improve your credit rating.
Credit Line Increases
The maximum credit line is $1,000. However, you may be eligible for increases after six months of responsible use and timely payments.
Benefits of Using a Grain
Grain makes it convenient to make everyday purchases with your digital line of credit using your current debit card. The app seamlessly integrates with your financial institution, and it’s easy to manage your account. Furthermore, you can manage your credit more effectively by only borrowing what you need to cover expenses.
How Much Does Grain Cost to Use?
Grain assesses an APR of 15% on withdrawn funds if you enroll in Auto-Pay (or 17.99% if you’re not enrolled in Auto-Pay).
- Finance charge: 1% per withdrawal
- Late payment penalty: 5% of the minimum payment due or $5, whichever is less
Depending on your credit agreement, you may also be subject to a sign-up fee and annual fee.
What Are Customers Saying About Grain?
- I desperately needed cash to pay rent and was searching for a paycheck advance app. I didn’t have much luck with that since all of them charged horrible fees, but then I found Grain. They extended a helping hand and gave me a chance to fix my credit. If I could give this app 10 stars, I would. I highly recommend it to anyone who needs a second chance to get out of a bad financial situation and rebuild their credit.—Mike Cin (App Store review)
- I was very excited when Grain began working with customers in my state. I live in Washington and have been trying for a few weeks. My application was approved in seconds for a real credit account. It’s unbelievable that these people are giving me a second chance. You should get this if you have a credit score of 600 or lower because most banks won’t work with you unless you apply for a secured credit card. Just make sure you’re responsible with your account and make your payment on time.—Germain Diop (App Store review)
How to Get Started with a Grain Account
You’ll need a U.S. checking account, preferably the account that you use to receive income and make payments, and an iOS mobile phone or iPad to use Grain. To get started, download the mobile app from the App Store. If you’re an Android user, join the waitlist by entering your email address into the form found on the website.
Security deposits are required for select applicants. It is not based on your creditworthiness but the cash flow in your checking account that was linked when applying with Grain.