Cheers Financial, a startup co-founded by Ken Lian, Zhen Wang, and Qingyi Li, has introduced an artificial intelligence-driven credit-building platform aimed at helping individuals, especially immigrants, gain financial independence in the U.S. Based in Pasadena under Idealab Inc., the company has focused on simplifying the onboarding process to enhance credit access for those often overlooked by traditional banks.
Since its launch in November, Cheers Financial has reported strong growth, attracting thousands of users to its secured personal loan product, which allows for automated monthly payments. This loan structure enables users to build credit while receiving their principal back after a 24-month term, with interest rates averaging approximately 12.2%. Notably, users entering with "fair" credit scores have experienced an average increase of 21 points within months.
Leveraging AI for data summarization, the company updates the three major credit bureaus every 15 days, aiming to reduce that interval to just one week. Previously, Lian's initiative, Cheese Inc., faced setbacks when operational partner Synapse Financial Technologies collapsed in April 2024, resulting in access issues for users. This experience has shaped their current approach in the fintech sector.