By KIMBERLEY HAAS
Leaders at Rocket Companies in Detroit have launched a credit card designed for potential homebuyers and homeowners.
Cardholders can earn 5% back – up to $8,000 – to use for closing costs and down payments with the Rocket Visa Signature Card. Homeowners with loans serviced by Rocket Mortgage can use points to receive 2% of their card spending for their unpaid principal balance, according to a press release.
The card is integrated with Rocket Money, a personal finance app with more than 3.4 million members. Co-Founder and CEO Haroon Mokhtarzada said since joining Rocket Companies at the end of 2021, they have been able to help users plan for their financial future.
“After honing their budgets, we’re seeing our members take the step toward buying a home through sister company Rocket Mortgage,” he said in a statement.
Co-Founder and Chief Revenue Officer Yahya Mokhtarzada recently sat down with the Mortgage Note and talked about how he and his brothers were able to launch the card as part of Rocket Companies.
Haroon, Yahya, and Idris Mokhtarzada founded Truebill, now Rocket Money, in 2015.
Yahya Mokhtarzada said this credit card is something they have wanted to offer for a long time.
“We didn’t want to just roll out a credit card that was like everything else on the market. We wanted to rethink it from the ground up to be fundamentally better than what is out there. I think we’ve achieved that,” he said. “This is really the first credit card of its kind.”
Yahya Mokhtarzada said getting a mortgage paid off is an effective way for the average person to build wealth. According to an analysis by Chris Horymski at Experian, the average credit card balance in Q3 2022 was $5,910 while the average mortgage balance was $236,443.
The response to the new Rocket card has been good so far.
“It’s still super early but I’m a numbers guy and so far the sign-up rates are ahead of projections,” Yahya Mokhtarzada said. “We’re pretty thrilled. It seems like the public is recognizing the value of the card and the value of the rewards and is coming on board.”
A marketing campaign is being planned.
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