This Unique Fintech Could Help Working Families Improve Their Personal Finances

Getting access to good bank accounts and building credit is often more difficult for people who earn lower incomes or who work multiple part-time jobs with inconsistent work schedules. As a result, some of the people who can least afford to pay extra fees for banking services end up getting overcharged with predatory payday loans, expensive check-cashing services, and other non-bank financial services that cost more than at a bank or credit union.

A fintech company called Reset (getreset.co) is trying to help lower-income people improve their personal finances with better access to their earned wages, without having to wait for payday. The Reset card is a unique type of on-demand pay or "earned wages access" card that works like a debit card, but without having a checking account.

Let's see how the Reset card can help working people get better financial wellness -- with the backing of a bank, but without bank account fees.

What is the Reset "smart card?"

The Reset card is a unique way to manage your spending: It's not a credit card (there's no credit check required and no line of credit) and it's not a debit card (it's not connected to a checking account). But it works the same way as a debit card -- it has a Visa logo on the front, and can be used wherever Visa debit cards are accepted.

Reset is an income-linked "smart card" that connects to the payroll platforms where its customers get paid. Wherever you get paid, if you work multiple gigs or part-time jobs, Reset can connect to those systems and track your income as you earn it. If you choose, you can access your wages every day. The card lets you get paid sooner, with no interest or fees.

How the Reset card works

The Reset card connects with major employers, payroll providers, gig platforms, and government benefit systems. If you have at least $500 of monthly income from one of these Reset-compatible sources, and you agree to make at least $500 of direct deposits through Reset, you can use the Reset card. Visit the Reset website to see if you're eligible to join. The Reset card is not available in Missouri, Nevada, or Wisconsin.

Unlike a credit card, where the amount you can spend is based on an approved credit limit, or a debit card, where the amount you can spend is based on how much money is in your checking account, the Reset card lets you spend based on your earned wages. It tracks how much money you've earned from your job or other gigs, and lets you spend money anytime -- even if it's not yet "payday." The Reset card puts your spending in your control. Every day can be payday, if you choose.

Reset does not charge any monthly fees, interest, or late fees to its customers. Reset only makes money off of the swipe fees that merchants pay when you use your card to spend money.

What other support does Reset offer?

Along with the Reset card, Reset customers can sign up for the Reset Financial Companion app. This gives people an overview of their income, spending, and personal finances, all in one place. See your recurring expenses, watch out for your spending limit (which changes day to day based on your income and spending), and connect Reset to your other bank or credit union accounts. It's like a built-in budgeting app that works with your Reset card.

Although Reset is not a bank, it partners with Stearns Bank, N.A. (FDIC insured) to issue the Reset card and provide banking services. Even if you're unbanked or underbanked, the Reset card can help you get the protections and benefits of the banking system, without fees.

Who should use the Reset card?

The Reset card could be a good choice for a few types of people and situations:

• You are currently unbanked (don't have a bank account at all)
• You are underbanked (you don't have one bank or card that is your "home base" for your money
• You work multiple gigs and get paid inconsistently
• You're living paycheck to paycheck
• You have recently used payday loan services or check cashing services
• You want an easier way to get paid sooner and manage your personal finances

Keep in mind that the Reset card is not a "credit card," and it does not help you build credit. There is no credit check or security deposit. If you want a way to build credit, consider applying for a secured credit card. Or you might want to look into the Sesame Credit Builder debit card from Credit Sesame.

Bottom line

People who are living paycheck to paycheck and who get paid from multiple gigs might want to consider the Reset card as a unique way to handle their everyday spending. The Reset card lets you get paid sooner by accessing your earned wages through gig platforms and payroll providers, with no interest or fees.

There are some limitations to this card; Reset is not a bank, and the Reset card does not help you build credit. But this could be a good solution for people who are experiencing the risks of being unbanked. People work hard for their money, and they deserve to get that money when they need it, without paying excessive fees.