BuildMyCreditScore provides a Mastercard debit card connected to a user’s current account through open banking technology

BuildMyCreditScore, a UK startup that enables individuals to effortlessly boost their credit score through everyday spending on a debit card, has secured a £200k grant from Innovate UK.

The Innovation in Professional & Financial Services grant from Innovate UK has an 8% acceptance rate with just 18 successful applicants out of 224 submissions – with £200k the maximum award from a total prize pot of £5 million.

Launched last month, BuildMyCreditScore provides a Mastercard debit card connected to a user’s current account through open banking technology.

While the debit card works instantly like a regular bank card, the money – up to a daily cap of £30 per day – is collected via Direct Debit by BuildMyCreditScore nearly two working days after, permitting it to be reported to credit reference agencies. As a result, cardholders are able to build their credit score by showing their ability to manage rolling outgoings and repay credit swiftly.

The app was tested by a pilot of 632 customers between December 2022 and June this year. Of that number, the majority saw a rise in their credit score of between 11 and 55 points within the first three months of trialling the product.

James Lynn, Chief Executive Officer and co-founder of BuildMyCreditScore, says: This funding is a significant milestone in our mission to strengthen social inclusion across the UK and offer an innovative yet simple solution to build credit scores for millions more people.

He added: Traditionally, people require a strong credit score to access affordable credit in the first place, with those with lower scores compelled to turn to more expensive credit options – this model is in desperate need of an overhaul. Innovate UK’s support will enable us to expedite our growth and widen our proposition to a much broader group of financially excluded people requiring improved access to credit.