Zilch Launches New Credit Scoring Platform

Published 8 months ago

Zilch, the UK-based award-winning payments network, has unveiled a new product, Zilch Up. This innovative platform aims to empower individuals typically underserved by mainstream credit, offering a path towards financial inclusivity.

Zilch Up: A Step Towards Financial Inclusivity

Zilch Up aims to create a safe and responsible avenue for millions to build their financial profiles without incurring any interest. The new product comes with all the benefits of Zilch’s zero-interest, ad-subsidised borrowing, but now with the added feature of being able to improve credit scores.

This product is a game-changer for the 5 million people in the UK who are considered ‘credit invisible’. These individuals can now utilise Zilch Up to elevate their credit scores and increase their credit limits, starting from as little as £50.

Enhanced Features and Services

Users of Zilch Up can pause credit and use Zilch as a debit card via the Pay Now option, earning rewards in the process. Alternatively, they can opt to use the Credit option and pay an initial instalment of 50%, with the remaining balance spread over six weeks.

Future features include financial support in the form of credit coaching, and the ability to view credit scores within the Zilch app.

A Regulated Offering with Consumer Protections

Zilch Up, in partnership with leading Credit Reporting Agencies (CRAs), allows consumers to improve their credit scores through interest-free spending on Buy Now Pay Later (BNPL) borrowing. This regulated offering provides consumer protections akin to mainstream credit products.

Zilch’s Vision of Democratizing Credit Access

Philip Belamant, co-founder and CEO of Zilch, emphasized the company’s commitment to enhancing consumer protections and widening access to interest-free and affordable credit.

Zilch Up is a testament to this commitment. In its testing phase, the product has already propelled over 25,000 customers into mainstream credit.

A Path to a More Inclusive Financial Ecosystem

Zilch Up not only underlines Zilch’s dedication to financial inclusivity but also marks a significant stride towards establishing a fair and inclusive financial ecosystem. This initiative brings the benefits of ad-subsidised zero-interest payments to customers who would otherwise be left out.

Zilch is the only UK BNPL provider whose data appears on consumer credit files and is included in scores. It was the first UK-born BNPL provider to be authorised by the Financial Conduct Authority (FCA), offering its customers additional protections and access to the Financial Ombudsman Service.