If you’re new to the UK or have little or no credit history, finding an affordable loan can be tricky. That’s because traditionally, no credit history meant no offer. Or, if you were lucky, an offer laden with high rates and fees.
But not anymore.
Our new lender Koyo makes decisions a little differently. They don’t just rely on your credit score to decide whether you’re suitable for a loan. They use your bank data too. And this means they have a better understanding of your financial situation when making you an offer.
How does it work?
When completing an application with Koyo, you add your bank data into the mix to potentially access better products. This is done via open banking – and it’s an opportunity for you to use your data to get a better deal. So, rather than looking at just your credit history, Koyo will look at things like your income and rental or mortgage payments to decide whether you’re eligible.
What is opening banking?
During the application process, you’ll need to consent to sharing your bank data with Koyo so they can assess your ability to pay the loan. But don’t worry. Sharing your bank data will not allow Koyo to save or store your bank login or password. Open banking is a Financial Conduct Authority (FCA) regulated technology, meaning they are held to the same regulatory standards as the rest of the financial services industry.
How they could benefit you
By harnessing open banking, Koyo can open doors for people that were previously shut. For instance, if you’re new to the world of credit or you’ve recently moved to the UK, you may find your credit score isn’t a fair representation of how you manage your money. By connecting to open banking, you could unlock credit offers previously unavailable to you.
- You could be eligible even if you are new to credit or the UK
- You’ll get a decision after 1 working day and then the loan could be in your account within 24 hours
- No charges for early repayment so you can choose to repay the loan sooner if it suits you
We only work with trusted lenders who are authorised and regulated by the Financial Conduct Authority. Check your eligibility now, without affecting your credit score. Find out how long it will take you to apply for a loan in our FAQ’s.