1 in 3 people in the UK have a ‘near prime’ credit score and are as reliable to lend to as ‘prime’, however, they are lumped in the ‘sub-prime’ category with high-interest rates. These borrowers have been unfairly mis-scored because they have inaccurate or invisible credit histories, or minor mistakes in the last six years.
Using a more financially inclusive way to lend, built from their proprietary open banking technology, the platform looks beyond traditional credit histories to give an accurate picture of a person’s financial position. Factors that determine a credit score, such as whether someone has a mortgage, the number of changes of address, and whether someone has taken out and repaid credit products, are not always accurate indicators of the ability to repay a loan.
Instead, Plend assesses a loan requestor’s net disposable income to tailor the loan terms by separating essential from disposable spend. This way, millennials and others who don’t tick the boxes on a traditional credit risk assessment can access funding at fair rates.
It’s outrageous that we are still experiencing financial discrimination based on a system that hasn’t been updated since the 1950s! We passionately believe affordable and ethical loans should be easily accessible based on your personal spending habits today, not your credit history over the last 6 years. Now, as our early access launches with FCA approval, we’re itching to create a fairer future where people are not held back by their credit score.
Rob Pasco | CEO and Co-Founder
