In 2018, Nirit Rubenstein knew there had to be a better way. The former CEO of a credit repair company, she had seen first-hand how difficult it is for consumers struggling with credit problems to navigate the complex and intimidating credit system. She understood the system was ripe for disruption.
Poor credit scores impact up to 70% of the US population, preventing consumers from purchasing a home, financing a vehicle, or even securing basic utility services. In a world where a single late payment can derail access to credit, most people have no clue how to dig themselves out of a credit hole. That is why Rubenstein and her investors are so bullish about Dovly, the company she founded with Tedis Baboumian in 2018 to automate credit repair using a proprietary algorithm.
While Rubenstein had identified the issue, and realized that something needed to be done, it was Baboumian who ran with the idea and turned it into a viable product. For nearly two decades, he had managed compliance and operations for Rapid Credit Reports (RCR), an independent credit reporting agency, eventually becoming its CEO. Through his work at RCR, Baboumian developed strong ties to the major credit bureaus and extensive knowledge of the credit ecosystem. These advantages have allowed Dovly to streamline what had become a cumbersome credit restoration process. “Tedis is the genius that helped create the machine”, says Rubenstein. “We took his deep know-how and put it to work. We spent hours upon hours iterating until we had something that would really make a difference for consumers.”
Behind the scenes, the system works to determine and act on the precise element of each trade line that should be disputed, something that would be impossible for a typical customer. Thanks to Dovly’s innovations, the platform is easy, effective, and affordable. 92% of Dovly customers improve their credit score within 6 months – at a cost that is a fraction of what traditional credit repair companies charge.
To reach customers over the past year, Dovly has partnered with MoneyLion, Credit Sesame, Varo Money, and Chime – businesses already serving millions of credit-challenged consumers. The company’s next step, after recently securing $2 million in seed funding from Silicon Valley VC firm NFX, is to reach consumers directly and disrupt the established credit repair services market. “We know that we do it better than anyone else”, says Rubenstein. “If we can make the process even half as painful as it has been, we know we are on the right track”.
With the ongoing public health crisis, Dovly is pushing to enter a market that is only going to expand. Recently it was reported 81% of Americans are experiencing stress related to their finances. COVID-19 will increase the US delinquency rate by 6.5% and insolvencies by 25% in 2020 alone. “Sadly, COVID-19 is going to intensify the need for credit. So many families are going to be debilitated by credit issues, and we know we can get them back on track”, says Rubenstein. “This is truly our passion. We care about our customers, and it is our responsibility to help where we can.”