UK open banking startup BuildMyCreditScore reports that users have experienced an average increase of 52 points in their credit scores within the first three months.
Launched in October, BuildMyCreditScore offers a Mastercard debit card linked to a user’s current account through open banking technology. While the card functions like a standard bank card, funds—capped at £30 per day—are collected via Direct Debit approximately two working days later. This allows the startup to report transactions to credit reference agencies, enabling cardholders to enhance their credit scores by showcasing their ability to manage ongoing payments and repay credit on time.
The company notes that one in ten users improved their score by more than 100 points, while the top 50% of cardholders recorded an average increase of 76 points in the first three months. According to PwC, there are 20 million financially underserved individuals in the UK with fair or poor credit scores. With a quarter of the UK population denied credit due to low scores, and over 40% seeking simpler methods to build their credit without acquiring new credit lines, BuildMyCreditScore is addressing a substantial market gap.
James Lynn, CEO of BuildMyCreditScore, emphasizes the challenge faced by those with low scores and thin credit files, leading to less fair and affordable credit options. He asserts that there is a need for a straightforward solution that enables individuals to build their credit scores in a safe, low-risk manner through everyday spending.
“Traditional credit builder products typically depend on timely repayments of borrowed credit. If customers miss payments for any reason, they risk worsening their credit situation. BuildMyCreditScore disrupts this approach by leveraging open banking to integrate smoothly with users’ existing spending habits, allowing them to improve their scores without altering their financial behavior or taking on new credit,” Lynn explains.