Credit builder Pave hits 450,000 users as access to credit options fall

As living costs rise, over 450,000 people in the UK use credit builder, Pave, as they look to improve their credit scores and access to credit.

With the ongoing cost of living crisis, there has been a 13% spike in Pave users over the last 12 months, from 400,000 users in January 2023.

With reliance on credit growing – 15% of people rely on credit to pay everyday expenses such as utility bills and food costs – households are increasingly searching for ways to unlock more credit options.

However, access to credit is declining – 16% of people say their access to credit has worsened since the pandemic, jumping to three in ten (28%) for 18-34 year olds.

Almost 600,000 people across the UK have downloaded the Pave app as they look to increase their credit score and improve their borrowing options – an 11% rise over the last 12 months when downloads sat at 540,000 at the start of 2023. Over 90% of Pave Plus customers who follow Pave’s actions and tips see their credit score improve over six months.

In a UK first, Pave recently expanded its app functionality to display both the Equifax and TransUnion credit scores to their users, providing them with greater vision of their credit scores. This is in addition to having their credit line reported to all three UK credit agencies, helping to improve all three of the customers’ credit scores.

This latest milestone completes a successful 12 months for Pave. Other recent notable developments include:

• Expanding its B2B AI credit decisioning tool, Fuse, to offer enhanced insights to lenders during affordability and lending processes
• Selection for the Mastercard Start Path Open Banking programme, an award-winning, global startup engagement programme
• Launching new product, Health Signals, to help risk and compliance teams to measure financial vulnerability, predict arrears risk, and monitor the impact of financial products on their customers
• Introduction of a new Income Verification Tool for Fuse’s B2B offer, which provides lenders with detailed insight into the borrower income streams of prospective borrowers and enhanced view of their finance.

Sho Sugihara, CEO and Co-Founder of Pave, said, “With reliance on credit spiking but access to loans plummeting, many borrowers are in an impossible situation where they struggle to make ends meet.

“The Pave app offers a solution for people to regain some control over their finances by increasing their credit scores to ensure they have access to the widest range of affordable credit products possible.

“It’s also vital that lenders ensure they’re doing all they can to not only improve access to credit but also to enhance the support solutions on offer to prevent borrowers from piling up long-term debt.

“By more effectively utilising data insights into borrower affordability and vulnerability, lenders can identify potential issues and offer effective support much earlier, ultimately reducing borrower defaults.”

Since launch, Pave has analysed more than 150,000 lending decisions, 1.5 million consumer credit reports, and over 500 million Open Banking transactions. Pave seeks to bring more financial equality to millions across the UK. As a fully regulated credit builder, Pave utilises Open Banking transactions to help consumers build better access to credit.