Why Did Nubank Start Credit Lines at Twenty Dollars?

David Vélez says Nubank started a lot of people with a twenty dollar credit line because twenty dollars was better than zero. Over a period of time, twenty dollars became one hundred dollars and one hundred dollars became one thousand dollars, and the right product let them create a credit history.

Nubank was the first credit card for 30 million people in Latin America. Banks said people do not want credit and do not want a credit card because they are scared about paying taxes and would never use the product. What customers lacked was a product that matched their needs. Banks thought a twenty dollar first line was absurd, and people appreciated it. An AI co-pilot then tells the customer which spending, investing, and savings moves gain points and make them more creditworthy. The coach improves their ability to access credit and their financial picture.