How to use Credit Builder
Having a good credit score is vital to improving your overall financial health. At Paysend, we know just how daunting it can be to start improving your score when you are unsure of the best approach to take.
With the ability to get access to improved financial freedom and benefits, Paysend Credit Builder allows you to make payments easily in no time, to showcase reliability and trustworthiness when reporting to three major credit agencies.
A good credit score can help you unlock financial freedom, allowing you to take out loans and apply for mortgages. It can also give you access to better insurance and rates, providing you with improved security.
If you live, work or study in the United Kingdom and are looking for a simple way to build your credit profile and take charge of your financial health, Paysend Credit Builder is the perfect solution.
How to get Credit Builder
Paysend Credit Builder is available only in the UK as part of the Paysend Grow subscription package. If you are an existing Paysend Multi-currency Account customer, you can sign up for a free trial by heading to the profile section and selecting Grow.
If you have not yet registered with Paysend to open a Multi-currency Account, download the app and follow the sign-up process to verify your identity.
How Credit Builder works
Paysend Credit Builder is an add-on feature to the Paysend app, with no credit check needed to apply and no interest fees applicable.
You can build and improve your credit score quickly, smartly, and securely by following these simple steps:
- Move money into your Credit Builder Account to set your spending limit.
- Connect your Paysend card to your Credit Builder Account to make purchases online or offline anytime.
- Paysend automatically collects the outstanding balance from money set aside in the Credit Builder account, or your GBP account, twice a month.
- Watch your credit score improve as Paysend reports your Credit Builder activity to three major credit reference agencies.
Paysend Credit Builder allows you to define your limit and spend anywhere online or offline, making every transaction count towards improving your credit score.
By making regular on-time payments, you have the opportunity to improve your credit score as Paysend reports this activity to three major credit reference agencies (Equifax, Experian, and TransUnion). Several factors determine the extent of this impact, as defined by the credit reference agencies.
What is a credit score?
In short, a credit score is a number that indicates how reliable you are with your finances, a value determining how likely you are to pay back personal loans or credit card payments.
A respectable credit score is a necessity for improving your overall financial health. The higher the number, the less risky you appear, and the more financial perks you will be eligible to receive.
How is your credit score determined?
Credit card companies and lenders will report your activities to credit bureaus every month, updating your score based on your activity. Paysend reports to all three major credit reference agencies, Experian, Transunion, and Equifax, to help boost your overall score.
Understanding what leads to improving your credit score
Factors that determine your credit report and reveal your credit score are aptly named credit score factors. Factors that may affect your scores are as follows:
- Total debt
- Number of accounts
- Types of accounts
- Number of late payments
- Age of accounts
Monitoring your credit activity can help you track your finances and manage your spending, saving, and repayments.
Why lenders use credit scores
Before credit scores, lenders would deliberate over an applicant's credit report to determine a higher or lower rating. This process was time-consuming, led to mistakes and biased results, and decisions that may have had little bearing on the ability to repay debt promptly.
These days, credit scores help lenders assess risk fairly and objectively. The score reflects your likelihood to repay debt responsibly based on past credit history and current credit status generated by central credit reference agencies.
How is your credit score calculated?
Credit scores are typically calculated based on the following five factors:
- Payment history
- Credit utilization
- Credit age
- Credit mix
- Inquiries for credit
Paysend is on a mission to improve your financial freedom
At Paysend, our team is working hard to develop fast and innovative digital money solutions that allow our customers to take charge of their economic well-being.
Our goal is to develop products that break down complex banking dilemmas and provide our customers with successful and sustainable alternative methods of managing their finances.
Paysend Credit Builder is here to help you make informed money decisions that lead to improved financial freedom, providing a responsible and reliable solution to help manage your payments quickly and affordably.
Make money transfers and carry out day-to-day transactions online or offline using your Paysend card or bank account while managing repayments quickly and easily with Paysend Credit Builder.
Sign up today!