Nubank adds government bonds investments as collateral option for credit card limit increase

São Paulo, October 3, 2024 – Nubank, the largest digital banking platform outside of Asia, announces the expansion of Nu Limite Garantido, a feature that allows customers to increase their credit card limit. Gradually, the eligible customer base is being given the option to use Tesouro Direto (government bonds) investments held in custody by Nubank as collateral.

Announced in 2023, Nu Limite Garantido allows customers to add resources invested with Nubank to their pre-approved limit, thereby enhancing their purchasing power while watching their wealth grow. The feature initially used deposits in an exclusive Caixinha (Money Box) designed for this purpose, yielding 100% of the CDI (Interbank Deposit Certificate). Of the total number of customers using Caixinhas, more than 6.7 million employ this tool through Nu Limite Garantido. The move to allow Tesouro Direto as collateral to increase the limit comes in a context where Nubank registered over 18 million active investor customers by the end of the second quarter of 2024.

“With this expansion, another step in collateralizing invested resources at Nubank, our customers can use the money invested in Tesouro Direto through the Nubank app to increase their credit card limit simply and transparently. With just a few clicks, the process is quickly completed, allowing customers to have more resources on their credit card to manage their financial plans while their money continues to earn returns,” explains Rusen Baragiola, head of Nubank’s credit card division.

In this evolving process of Nu Limite Garantido, initially, it will not be possible to simultaneously use resources invested in the Money Box and Tesouro Direto. Just as customers can make recurring investments in Nu Limite Garantido’s Caixinha, they can also choose the amount already applied in government bonds to convert into an additional credit card limit. Currently, when combining all available credit lines (pre-approved and Nu Limite Garantido) for the Nubank card, the maximum total limit is R$150,000.00.

For the designed experience, if a person holds more than one active bond in Tesouro Direto, Nubank automatically selects those with the lowest volatility (determined by type and maturity) and, consequently, the highest likelihood of being converted into credit limit. Eligible government bonds include Tesouro Selic, Tesouro IPCA+, and Tesouro Prefixado (Fixed-Rate), whereas Tesouro Renda+ and Tesouro Educa+ versions are not eligible for this experience.

The customer has complete control over the use of Nu Limite Garantido, being able to edit the amount or cancel the use of the investment as an additional limit at any time, as long as the pre-approved limit has not been compromised in the invoice. If the credit card invoice is not paid in full or if the minimum amount is not paid within seven days of the due date, Nubank will automatically activate the value pointed out as collateral (Caixinha or Tesouro Direto), thereby reducing the customer’s indebtedness.

To use the Nu Limite Garantido feature – whether through the Money Box or with Tesouro Direto investments – customers should access the credit card section in the Nubank app and click on the “My limits” button.