A new Open Banking tool, BuildMyCreditScore , has launched with the aim to help people build credit scores via everyday spending. BuildMyCreditScore seeks to bridge a gap by using Open Banking technology to empower people to build their credit score in a straightforward manner through everyday spending on a debit card.

About a quarter (23%) of Brits have been denied credit due to their poor credit score. This equates to over 7 million people across the UK. Moreover, around four in ten (43%) Brits want an easier way to build their credit score, one that does not require taking out new lines of credit.

A product fit for the market Research shows that more than 9 million adults across the UK were declined for credit in just 12 months, with one in 20 declined three times or more. The press release highlights that BuildMyCreditScore is designed to improve outcomes for these individuals and others whose credit score is preventing them from achieving their financial goals. This launch is expected to appeal to a number of market segments, such as someone who has recently moved to the UK, someone who hasn’t borrowed money before, or someone who has previously been declined for a financial product.

BuildMyCreditScore is a Mastercard debit card that allows people to build their credit score without changing their spending habits. The press release also further highlights that 58% of people say they feel more comfortable using a debit card than a credit card for everyday spending. This rises to two-thirds (66%) among 18–34-year-olds.

BuildMyCreditScore, then, aims to provide an easier way to build a credit score without taking out a credit card. The debit card works in a similar manner to a regular bank card. However, the money is collected through Direct Debit by BuildMyCreditScore around two working days later.

This allows transactions to be reported to credit reference agencies. Consumers, therefore, build their credit score by demonstrating their ability to manage rolling outgoings and repay credit promptly. Outcomes during the pilot phase The information given in the press release suggests that BuildMyCreditScore has already helped various people improve their credit scores.

The app was tested by a pilot of 632 customers between December 2022 and June 2023. Of that number, the majority saw an increase in their credit score of between 11 and 55 points within the first three months of trying out this product. The team behind BuildMyCreditScore has partnered with Mastercard to deliver multiple experimental debit card products in recent years.

The product is compatible with all major bank accounts and works with Experian, TransUnion, and Equifax to report key credit data. Furthermore, the accompanying app also comes with educational, personalised tips and tools to help users manage their spending, regular payments, and upcoming spending commitments. .