October 18 2022: Experian Boost data will now be included in NewDay’s credit card decisioning process - enabling Boost users to receive more competitive rates at a time when they need them the most. Regardless of whether consumers apply for one of NewDay’s credit products through Experian, NewDay, or any other third-party site, their boosted Experian credit scores will be considered.
Experian Boost is the UK’s first 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. The partnership with NewDay further supports Experian’s mission to improve financial inclusion for consumers, as Boost users will have access to even better credit options than they would have without Boost, as interest rates continue to fluctuate.
Customers can connect to Experian Boost via Open Banking1, voluntarily adding new, relevant, and real-time information to take control of their credit score. Consumers who have received a given level of boost are more likely to be accepted and/or given a higher credit limit with NewDay’s products including Aqua and Bip.
The development follows an update to how the size of the score boost is determined, with new calculations suggesting that Experian Boost is an even better predictor of creditworthiness than initially estimated. As a result, Experian Boost users can now increase their credit scores by up to 101 points, which could mean a customer moves up two score bands. Previously, the maximum increase was 66 points.
Sigga Sigurdardottir, Managing Director, Consumer Services at Experian, said: “The addition of NewDay will allow more Boost users to improve their creditworthiness and access the right financial products for them. As economic uncertainty increases, it’s important that all consumers have more affordable products available to them.
Our ambition with Experian Boost is to help as many people as possible across the UK increase their credit scores and make access to credit more inclusive, so we’re glad that our partnership with NewDay is providing that opportunity for consumers.”
Gael Decoudu, Director of Credit Decision at NewDay, said: “NewDay’s purpose is to help people move forward with credit. Experian Boost supports this through its innovative use of open banking to provide us with a real-world view of affordability. This means we can offer applicants more favourable rates than they otherwise might have had access to, without increasing any lender risks. It’s a win-win for both consumers and lenders, and we’re proud to include it as part of our approach to credit decisioning and responsible lending.”
NOTE TO EDITORS:
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.
Eliza Odire-Boadi, Consumer PR Manager, Experian UK&I
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NewDay is a leading provider of unsecured credit in the UK, helping over 4.5 million customers move forward through responsible access to credit. It offers technology-enabled, highly flexible and innovative products directly to consumers and via its merchant relationships.
NewDay operates multiple direct-to-consumer products through well-known brands such as Aqua, Fluid, Marbles and Bip - the UK’s first digital only credit “card”. In its Merchant Offering business, NewDay provides co-branded credit cards, and offers Newpay, a flexible digital finance product incorporating Buy Now Pay Later and instalment finance for both large retailers and SMEs.
Powered by machine learning, NewDay’s leading proprietary credit models enable it to be one of the most inclusive lenders in the UK. NewDay’s deep underwriting capability and 20 years of experience allow it to responsibly say “yes” to more UK customers, making NewDay a merchant partner of choice for leading brands such as AO.com, Argos, Currys and John Lewis.
NewDay is authorised and regulated by the Financial Conduct Authority.