23 December 2021: Experian Boost is the UK’s first and only service to help consumers improve their credit scores using transactional information like total current account incomings and outgoings, as well as regular payments to digital streaming providers, savings accounts and council tax.
People connect to Experian Boost via Open Banking1, voluntarily adding new, relevant and real-time information to take control of their credit score.
Experian Boost users can increase their credit scores by up to 101 points, which could mean a customer moves up two score bands. More than two thirds (68%) of those using Experian Boost will receive an instant increase to their Experian Credit Score2.
NewDay will be offering a credit card with a 0% introductory rate, and this offer will be exclusively available to people who have raised their credit score through Experian Boost. The Aqua card offers 0% on balance transfers for 7 months and 0% on new purchases for 4 months. The offer will start on the date of account opening.
Sebastian Worbs, MD Products at Experian Consumer Services said: “We’re delighted that NewDay will be offering such a competitive credit card to people who have improved their credit score through Experian Boost. When we launched Experian Boost, we said our ambition was to help as many people as possible across the UK increase their credit scores and broaden access to affordable credit.
“As more lenders like NewDay consider using data from Experian Boost in their credit decisions, it means more consumers can put their best foot forward and get the credit they deserve, boosting financial inclusion and helping them save money on interest payments.”
Sharvan Selvam, Director of Own Brands at NewDay said: “We're excited to partner with Experian and support this innovative initiative. We recognise the potential of additional insights from Experian Boost that can give us an even more rounded view of an applicant's affordability, helping more people access credit responsibly.
“The partnership greatly complements our proprietary credit decisioning platform which, with over 1 trillion data points, already goes beyond the traditional bureau snapshots and allows NewDay to responsibly say ‘yes’ to more customers. NewDay is one of the most inclusive lenders in the UK and this partnership aligns closely with our purpose of helping people move forward with credit.”
How Experian Boost Works
Experian Boost allows consumers to use bank account data, such as paying into savings accounts regularly and generally paying your Council Tax, or even your Netflix or Spotify subscriptions, on time, to improve their creditworthiness.
Lenders can use information from this new data to make more informed credit decisions and in turn may be able to make more offers to customers. By providing a better view of their finances to lenders, people can instantly enhance their Experian Credit Score, which could boost their chances of getting approved for credit.
1Open Banking is an initiative that allows consumers to share their bank transactions with FCA authorised third parties via a safe and secure connection. Data cannot be shared without the consumer’s explicit consent. The aim of Open Banking is to drive innovation in the quality of products and services that people can access.
Open Banking uses APIs – or Application Programme Interfaces – which are technology that allow banks and other companies to conveniently and securely share data between their organisations.
2The Experian Credit Score is based on the information in their Experian Credit Report, such as how many credit accounts they have and how much credit they use as a percentage of their credit availability. It runs from 0-999 and can give someone a good idea of how lenders are likely to view them. The higher their score, the better the chance the individual has of securing the credit they’re after along with lower interest rates because they are predicted as more likely to pay back their borrowing. The table below is a score band guide to show what scores generally secure the best offers.
Experian Credit Score Bands:
Very Poor 0 - 560
Poor 561 – 720
Fair 721 - 880
Good 881 - 960
Excellent 961 – 999
An Experian Credit Report already includes a wide variety of accounts such as loans, credit cards, mortgages, mobile phone contracts, bank accounts and even some regular household bills such as energy, water and broadband. Reports also include a selection of relevant public records such as the electoral register as well as court judgments (‘CCJs’ in England and Wales) and insolvencies. In most cases, a credit report captures this information over the past six years.
Alongside the credit report, the lender might also assess the information on your application form (about your occupation and income, for example) along with any information it already knows about you if you’ve been a customer before.
Experian is the world’s leading global information services company. During life’s big moments – from buying a home or a car, to sending a child to college, to growing a business by connecting with new customers – we empower consumers and our clients to manage their data with confidence. We help individuals to take financial control and access financial services, businesses to make smarter decisions and thrive, lenders to lend more responsibly, and organisations to prevent identity fraud and crime.
We have 20,000 people operating across 44 countries and every day we’re investing in new technologies, talented people, and innovation to help all our clients maximise every opportunity. We are listed on the London Stock Exchange (EXPN) and are a constituent of the FTSE 100 Index.
Learn more at www.experianplc.com or visit our global content hub at our global news blog for the latest news and insights from the Group.
NewDay is one of the largest UK consumer credit providers with the simple purpose of helping people move forward with credit. We are proud to serve close to five million customers across the UK through our portfolio of brands designed to meet a range of different consumer credit needs. This includes five of our own brands, alongside a stable of retail and e-tail partnerships with leading brands.