Zilch, a UK-based payments network, has introduced Zilch Up, a new offering aimed at providing individuals often excluded from conventional credit options in the UK with access to affordable credit while facilitating the establishment of a credit history.
Philip Belamant, CEO and co-founder expresses, “For far too long, a significant number of individuals in the UK have had to grapple with limited or nonexistent credit access, often due to insufficient or weak credit histories.”
Belamant goes on to say, “We are committed to challenging this status quo by democratizing access to interest-free and affordable credit, thereby empowering millions of families and individuals to better manage and plan their day-to-day financial well-being.”
Belamant emphasizes that recent testing has demonstrated Zilch Up’s potential to assist more than 25,000 individuals with limited credit history in becoming visible to credit reference agencies in the UK.
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Advantages of Zilch Up: Enhancing Financial Inclusivity
Zilch Up presents users with the benefit of affordable loans and credit score enhancement.
The firm extends credit limits starting as low as £50 (€57.9) and reaching up to £1,000 (€1,158). Users can effortlessly expand their credit limits through a straightforward process within the app.
Customers using the fintechs tool to have the flexibility to temporarily pause their credit line, enabling them to employ Zilch as a debit card by opting for the “Pay Now” feature. Moreover, they have the option to switch to the “Credit” mode within the app, allowing them to make an initial payment of 50% of the total amount and spreading the remaining 50% over a span of six weeks.
Economic Vulnerability
To enhance their credit scores while collaborating with the fintech, users must prioritize punctual and more consistent payment practices compared to their previous interactions with other lenders. Another approach to achieving this is engaging with lenders who do not typically report their lending history, particularly high-cost lenders, which can be beneficial if an individual lacks prior credit history.
Although Zilch Up can assist users in establishing their credit scores by partnering with prominent credit reference agencies in the UK, it’s essential to acknowledge that missing payments may still have an adverse effect on credit scores. Zilch actively promotes responsible spending, taking into account each individual’s financial capacity.
To bolster users’ financial well-being, Zilch will soon provide access to credit coaching and the ability to view their credit scores within the Zilch app.
Philip Belamant asserts, “We need to reinforce consumer protections and expand access to interest-free and affordable credit, particularly at a time when the rising cost of living is impacting individuals.”
Award-Winning Fintech Leader
The fintech from UK, a multi-award-winning payments network, is on a mission to transform the advertising and payments industries, which collectively represent a staggering $50 trillion (€47.09T), through the integration of debit, credit, and savings. What sets Zilch apart in the fintech landscape is its innovative vertically integrated, first-party data business model. Committed to delivering a seamless user experience, Zilch leverages advanced technology and creative payment solutions.
Zilch empowers customers to utilize interest-free credit with a Buy Now, Pay Later (BNPL) approach, all while enjoying consumer protection. Notably, Zilch holds the distinction of being the first UK BNPL credit provider authorized by the Financial Conduct Authority (FCA). Since its launch in 2020, the company has rapidly amassed over 3.5 million registered customers in just 36 months.
With a diverse array of online stores accessible through their app, customers can activate their card and relish zero fees. Being a Mastercard, it offers unparalleled flexibility, enabling payments to be made seamlessly across a wide range of locations, whether online or in-store.
