Seattle fintech startup Possible Finance lands $20M to launch ‘safest credit card ever’

The news: Possible Finance, a Seattle startup that offers loans, just raised an additional $20 million and plans to launch a new credit card.

The details: The company got its start selling small loans that give borrowers more time to pay back while helping people rebuild their credit. The new product is a credit card that does not charge interest or late fees; users instead pay a flat monthly fee for up to an $800 limit. It does not require a credit score check or security deposit.

The strategy: Possible CEO Tony Huang said credit card companies make most of their revenue by lending to “vulnerable” customers who are in debt and have to pay interest and late fees. “The whole industry is economically incentivized to keep people in debt,” he said. Possible doesn’t profit from customers with debt.

“The Possible Card is not only the safest credit card ever, it’s also the first card to help customers spend less, not more, of their hard-earned money,” Huang said.

Possible is also launching a cash advance product called Possible Cash, which helps customers get approved for a Possible Card if cash is paid back on a regular, on-time cadence.

The funding: Previous backers including Union Square Ventures, Canvas Ventures and Unlock Venture Partners participated in…