A new partnership has been announced between BuildMyCreditScore, a credit builder debit card, and Creditspring, a responsible lender. This collaboration aims to enhance financial inclusion by offering innovative solutions for boosting credit scores.
Revolutionising Credit Building
BuildMyCreditScore isn’t your typical debit card. It’s a Mastercard debit card with a twist – it helps you build your credit score without altering your spending habits, taking on new credit lines, or risking debt accumulation. This solution is particularly vital as PwC reports that around 20 million people in the UK are financially underserved with fair or poor credit scores.
The demand for a hassle-free way to enhance credit scores is evident. With 23% of Brits denied credit due to poor scores and 43% seeking an easier method to improve their rating without accruing new debt, the need for alternative solutions is clear.
A Partnership for Financial Empowerment
Creditspring members will now have exclusive access to BuildMyCreditScore through a members-only space offering advice and support. This partnership is more than just a service; it’s about empowering individuals to make informed financial decisions, gain better control over their finances, and access more affordable credit products.
During its pilot phase from December 2022 to June 2023, BuildMyCreditScore tested its efficacy with 632 customers. The majority witnessed an 11 to 55 point increase in their credit scores within the first three months, showcasing the potential of this innovative product.
Building Social Inclusion
James Lynn, CEO and Co-Founder of BuildMyCreditScore, emphasizes the mission to enhance social inclusion across the UK. This partnership with Creditspring opens doors for numerous members to improve their credit scores, offering access to a broader range of credit products. He highlights the use of open banking, enabling users to enhance their scores without the pitfalls of taking out new credit products or accruing long-term debt.
Addressing the Credit Crisis
Neil Kadagathur, Co-Founder and CEO of Creditspring, sheds light on the challenges posed by the cost of living crisis. He acknowledges the obstacle of poor credit scores in accessing essential affordable credit. This partnership forms a crucial part of their strategy to assist members in building their credit files and increasing their credit options.
The BuildMyCreditScore Debit Card
The BuildMyCreditScore card functions like any regular bank card but with an added benefit. The money is collected via Direct Debit after a few days, allowing users to demonstrate their ability to manage finances and repay credit promptly. Utilizing open banking technology, it is compatible with all major high street bank accounts and reports key credit data to Experian, TransUnion, and Equifax.
Creditspring’s Unique Credit Model
Creditspring stands out with its FCA-regulated, no-interest, subscription-based credit service. It offers short-term, affordable credit with clear terms, capped costs, and no hidden fees. Members pay a fixed fee each month, enabling access to two no-interest loans annually, further aiding in building credit files.
A Step Forward in Financial Inclusion
This partnership is not just about enhancing credit scores; it’s a significant leap towards financial inclusion. With BuildMyCreditScore’s recent £200,000 grant from Innovate UK, the UK’s innovation agency, the duo is set to expand their reach and positively impact those typically declined by traditional lenders or credit building cards.
In conclusion, this pioneering partnership between BuildMyCreditScore and Creditspring marks a new era in responsible lending and credit building. It offers a ray of hope for millions striving for financial stability and better credit access in the UK.