UK Startup Utilizes Open Banking to Boost Credit Scores

Published 8 months ago

A UK-based startup, BuildMyCreditScore, has recently launched a unique service that allows individuals to enhance their credit scores through daily debit card spending.

Building Credit Through Daily Spending

BuildMyCreditScore provides a MasterCard debit card linked to a user’s existing bank account using open banking technology. The card functions like any regular bank card, but the money spent, up to a daily limit of £30, is collected by BuildMyCreditScore via Direct Debit approximately two days later. This method allows the transaction to be reported to credit reference agencies, enabling cardholders to improve their credit scores by showcasing their ability to handle recurring expenses and timely credit repayments.

Successful Trial Run

The app underwent testing through a pilot program involving 632 customers from December 2022 to June 2023. The majority of these customers observed a significant increase in their credit scores, ranging between 11 and 55 points, within the first three months of testing the product.

A Disruptive Approach

James Lynn, CEO and Co-Founder of BuildMyCreditScore, noted the revolutionary aspect of their product. Unlike traditional credit builder products that depend on prompt repayments of borrowed credit, BuildMyCreditScore’s innovative use of open banking integrates seamlessly with an individual’s usual spending habits. This approach promotes a low-risk way to build credit scores through everyday spending, without the danger of falling into debt and further damaging the credit score.