Open Banking-powered app BuildMyCreditScore launches

A new Open Banking-powered tool that allows individuals in the UK to build their credit score through everyday spending on a debit card card, rather than opening a new line of credit, has launched.

BuildMyCreditScore is a Mastercard debit card which has already been tested by a pilot of 632 customers between December 2022 and June 2023.

Within the first three months of trialling the product, the majority saw an increase in their credit score of between 11 and 55 points.

Like a regular bank card, the money is collected via Direct Debit by BuildMyCreditScore around two working days after, allowing it to be reported to credit reference agencies.

The new app is compatible with all major UK high street bank accounts and works with Experian, TransUnion, and Equifax to report key credit data.

The launch of BuildMyCreditScore follows research by Opinium which found that 23% of Brits have been denied credit due to their poor credit score, equating to more than seven million people across the UK.

The research revealed that 43% of Brits want an easier way to build their credit score that doesn’t involve taking out new lines of credit.

James Lynn, chief executive officer and co-founder of BuildMyCreditScore, said: “Traditional credit builder products typically rely on someone making prompt repayments on credit they’ve taken out. If they fail to do so for any reason, they risk falling into debt and harming their credit score further.

“BuildMyCreditScore’s innovative use of Open Banking disrupts this model by integrating seamlessly with a person’s usual spending habits, allowing them to build their credit score in a safe, low-risk way through their everyday spending.”

The same research found that 58% of people feel more comfortable using a debit card than a credit card for everyday spending, rising to 66% among 18 to 34-year-olds.

“At Mastercard, we are always looking at new ways to bring essential products and services to underserved groups,” added Darren Deal, senior vice president for business development at Mastercard UK and Ireland.

“Now more than ever, people are looking for innovative solutions to help manage their finances and we’re pleased BuildMyCreditScore provides an opportunity for people to have more control over their financial futures.”