San Francisco– based credit education startup ReadyForZero has been acquired Chicago’s Avant, a big data-driven platform.
Both companies have ties to Y Combinator, with ReadyForZero graduating from the accelerator in 2010, and Avant co-founders John Sun and Paul Zhang participating in a later class under a prior company called Debteye.
The ReadyForZero brand and product will live on post acquisition, according to both companies, while many of the company’s credit and debt management tools will also be integrated directly into the Avant site.
The companies are still determining whether they will retain a paid premium tier within the ReadyForZero platform, but Goldstein says that the goal is to reach as many consumers as possible and thus many of the most popular paid features may soon be free.
As of today, ReadyForZero will begin reccommeding Avant among its alternative lending options, which previously had included LendingClub and Prosper.
As the company’s costs of capital decline and it is able to more effectively manage its risk through improving technology, Goldstein said Avant is targeting APRs closer to 10 percent in the future.
Avant will measure success of this deal based on number of users and number of global markets that ReadyForZero is able to reach while part of its platform.