GoodLeap Launches Visa HELOC Credit Card for Home Improvements

Technology platform GoodLeap announced on Thursday the launch of a Visa Signature credit card that is backed by a home equity line of credit (HELOC). This new offering is designed to enable homeowners to finance home improvement projects and everyday purchases, while simultaneously earning cash-back rewards. The product, named the GoodLeap Home Visa Signature Card, or GoodLeap Home Card, provides eligible homeowners with access to a HELOC of up to $150,000. This credit line can be utilized over time through multiple draws, rather than requiring a single upfront disbursement, according to the company's statement. The GoodLeap Home Card is accepted wherever Visa is taken and does not carry an annual fee. Cardholders are eligible to earn 6% cash back on qualifying home projects that are initiated through the GoodLeap Home application. Furthermore, cardholders who spend a minimum of $2,000 within a billing cycle can earn 3% cash back on eligible everyday purchases. GoodLeap stated that homeowners can leverage the line of credit for various purposes, including financing new purchases, consolidating existing balances with higher interest rates, and converting balances exceeding $1,000 into installment plans. These installment plans feature fixed payments and reduced interest rates. Dan Lotano, GoodLeap’s chief operating and strategy officer, commented in a statement that homeowners undertaking significant projects, such as a $20,000 HVAC system upgrade, should be earning substantial cash back on investments that increase their home's value, rather than minimal rewards on credit cards with high Annual Percentage Rates (APRs) often exceeding 20%. He emphasized that the GoodLeap Home Card aims to rectify this situation for homeowners with equity, who may have been overpaying and earning insufficient rewards. The card is integrated with GoodLeap's existing platform and its network of contractors. This network supports financing for a range of home improvement categories, including solar installations, HVAC systems, roofing, windows, and battery storage solutions. Prospective cardholders can explore prequalification options through participating contractors before commencing a project. Upon approval, homeowners will maintain access to their line of credit for future renovations, emergency repairs, and additional upgrades without the need to reapply for new financing, as stated by the company.