UK-based payments network Zilch has launched Zilch Up, a new product designed to help people typically excluded from traditional credit in the U.K. access affordable credit and build credit history.
“For too long, millions of people in the U.K. have had to struggle with limited or no access to credit due to thin and weak files,” says Philip Belamant, CEO and co-founder of Zilch.
“We want to change this status quo by democratising access to interest-free and affordable credit, advancing the lives of millions of families and individuals in managing and planning their day-to-day financial health,” adds Belamant.
According to Belamant, recent testing shows that Zilch Up has the capabilities to help over 25,000 credit-invisible people become visible to credit reference agencies in the U.K.
Benefits of Zilch Up
Zilch Up offers affordable loans and credit score improvement.
Zilch Up offers customers credit limits of as little as £50 (€57.9) to £1000 (€1,158). Users can increase their credit limit easily with just a few steps on the app.
Zilch Up customers have the option to pause their line of credit and use Zilch as a debit card by selecting the Pay Now option. Additionally, they can switch to Credit mode within the app, allowing them to pay 50% of the total amount upfront and the remaining 50% over the course of six weeks.
To boost their credit score while working with Zilch, users need to ensure that they make their payments on time, more consistently than they have done with other lenders. Another way to achieve this is by having no prior credit history and borrowing from lenders that do not report their history, typically high-cost lenders.
Although Zilch Up can help users build their credit score by partnering with the UK’s leading credit referencing agencies, missing payments can still negatively impact the credit score. Zilch encourages responsible spending depending on the individual’s financial capabilities.
To support their financial well-being, Zilch users will soon have access to credit coaching and be able to view their credit score in the Zilch app.
“We need to strengthen the protections for consumers and increase access to interest-free and affordable credit – particularly now when the cost of living continues to hurt,” says Belamant.
Multi-award winning fintech
Zilch is an award-winning payments network that aims to revolutionise the advertising and payments industries worth $50 trillion (€47.09T) by merging debit, credit, and savings. Its unique, vertically integrated, first-party data business model sets it apart from others in the fintech industry. Zilch is committed to providing its users with a seamless experience by leveraging its advanced technology and innovative payment solutions.
Zilch allows customers to use interest-free credit with BNPL (Buy Now, Pay Later) while benefiting from consumer protection.
Zilch was the first UK BNPL credit provider authorised by the Financial Conduct Authority (FCA). In 36 months since its launch in 2020, Zilch amassed more than 3.5 million registered customers.
With thousands of online stores on Zilch’s app, customers enjoy zero fees once they enable their card. As a Mastercard, it offers flexibility as it allows payments to be made at various locations, whether it’s online or in-store.