SeedFi’s Credit Builder feature will join Intuit’s Credit Karma business to help more members build credit while saving money.

Following from a partnership struck last year between Intuit’s Credit Karma and SeedFi, the partner behind Credit Karma’s Credit Builder product, Intuit (NASDAQ: INTU) has now acquired SeedFi for undisclosed terms. SeedFi enables members make regular payments, starting with as little as $20 per month or $10 per paycheck. By reporting these payments to the credit bureaus, members took steps toward improving their financial health and increased their credit score. (Intuit)

SeedFi seeks to break the cycle of debt that entraps many Americans. According to the Consumer Financial Protection Bureau (CFPB), nearly three-quarters of Americans with no emergency savings have credit scores below 660, and this correlation between low credit scores and lack of emergency savings persists over time.

However, through the partnership between Credit Karma and SeedFi, members increased their score by an average of 21 points in as little as 30 to 45 days and built up over $10 million in savings.

“By combining SeedFi’s Credit Builder technology with Credit Karma’s long-standing relationships with credit bureaus and others in the credit ecosystem, Intuit will be able to move with greater speed and scale to help Credit Karma members make financial progress,” Intuit said in a statement. The company is known for products such as TurboTax, Credit Karma, QuickBooks, and Mailchimp.

“We have already been working with the Credit Karma Money team for over a year to help members build their credit score and have been impressed with how Credit Karma’s mission comes through in everything the company does. SeedFi has a similar mission to help consumers become financially fit, so joining forces just makes sense,” said SeedFi co-founder and CEO Jim McGinley.

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