What is CRED and How does it work?

What is CRED and How does it work?
What is Cred How Cred make money

CRED App, founded by Kunal Shah, helps the user to earn reward points every time they pay their Credit Card bills

The CRED app tracks all your credit cards and sends you timely payment reminders to help users pay their bills on time

The app tracks all of your credit card spending patterns and sends the users reports & also inform users about any unexpected fees or charges that have been charged to their credit card. 

However, not everyone is eligible to use the CRED app. The CRED app only accepts users who have a credit score above 750

The app offers many rewards for using in the form of CRED coins, which can be redeemed for cash or rewards from brands you love

Some examples of the offers can be like Shopping (Myntra 15% OFF), Health (Doctor consultation with DocsApp), Food delivery apps (Swiggy 1 Year free deliveries and Up to 25% discount)

You can also redeem CRED coins for actual cash in the ‘Kill the Bill’ section which is a cashback offer 

Typically, for redeeming 1000 CRED coins you will get a cashback of Rs 5 to Rs 10 on your credit card

How CRED Makes Money

At present, CRED makes no money and is focusing to increase its consumer base

CRED makes money by charging a listing fee for products and offers that businesses wish to display to the app users

The potential for the data collected from the app seems to be a viable monetization opportunity in the future for lending-based services

CRED has users’ financial data like how timely users made payment of the bill, their expenditure data, their credit scores data, and many other financial data

Data monetization is the first possible source. They will not sell data to third parties, but they will use data to optimize and personalize the use of the user interface, as described in the CRED privacy policy

As we all know today in the world, data is just as important as oil and can be taken advantage of in many forms

Also, currently, CRED points can be redeemed with multiple rewards from their different partners. They can also charge form their partners on making a deal with them.


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