Zilch has introduced a groundbreaking product aimed at empowering individuals who are traditionally excluded from mainstream credit.
This innovative offering provides millions with the opportunity to build their financial profiles securely, responsibly, and without incurring any interest charges.
The solution, known as Zilch Up, offers all the advantages of Zilch’s zero-interest, ad-subsidised borrowing while introducing a novel feature—credit score improvement. The product is designed to equip customers with the tools to enhance their credit scores and expand their credit limits. With initial credit limits as low as £50, Zilch Up maintains the potent features of the original Zilch product but incorporates key adjustments tailored to its target users.
Customers using Zilch Up have the flexibility to pause their credit and utilise Zilch as a debit card through the “Pay Now” option, all while earning rewards. Alternatively, they can take full control by switching to “Credit” within the app, allowing them to make the first installment of 50% with the remaining 50% payable over six weeks. In the near future, Zilch Up users will gain access to credit coaching and the ability to view their credit scores directly within the Zilch app.
This innovative approach ensures that customers have access to a regulated offering that, in collaboration with leading credit reference agencies (CRAs), allows them to enhance their credit scores by utilising interest-free credit via Buy Now, Pay Later (BNPL) borrowing. This offering also provides customers with the expected consumer protections associated with regulated products.
Philip Belamant, CEO and co-founder of Zilch, said: “We need to strengthen the protections for consumers and increase access to interest free and affordable credit – particularly now when the cost of living continues to hurt. For too long millions of people in the UK have had to struggle with limited or no access to credit due to thin and weak files. In a digital finance world, this is causing them the stress and crippling pain of funding unaffordable high interest costs plus the danger of hard to understand late fees, merely to access credit.
“At Zilch, we aren’t waiting. We want to change this status quo by democratising access to interest free and affordable credit, advancing the lives of millions of families and individuals in managing and planning their day-to-day financial health. In testing, our new product, Zilch Up, has already lifted over 25,000 customers into mainstream credit and we intend to help many more.”
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