How does Pave Lite work?

Read this section if you signed up for Pave Lite on or after the 24th of January 2022.

Pave Lite can improve your TransUnion credit score by encouraging on-time payments of your recurring expenses. We open a £50 credit line that may improve your credit utilisation rate if used responsibly. Your credit utilisation rate is the amount of available credit you are using and is one of the largest factors impacting your credit score, together with payment history.

If you’re interested in a credit line with a higher limit, feel free to check out Pave Plus.

How Pave Lite works:

1. 1. We analyse your account history and identify recurring bills and subscriptions through Open Banking. Our app will then show you your recurring subscriptions and bills.
   2. We send smart alerts to encourage on-time payments of eligible recurring expenses. On-time payments show that you can repay these expenses on time and in full which can help build your credit score.
   3. With your Lite membership you have a £50 line of credit and subject to eligibility, we may top up your account with enough balance to pay recurring expenses up to this value.
   4. Your payment behaviour relating to the credit line is shared with TransUnion.

Pave Lite also lets you track your TransUnion credit score in the app, we do not do any hard credit checks to use your Pave membership.

Please note that Pave memberships cannot guarantee to improve your score. Pave Lite is reported as account type 04 - Revolving account to TransUnion which is one of the major Credit Reference Agencies in the UK.

Pave Lite can build your Experian credit score by improving your repayment history.

Repayment history is the largest impacting factor on your credit score as it makes up 35% of your overall Experian credit score, so improving this can be an effective way to improve your score.

We report your Pave Lite membership as a 'rental agreement' when we report your membership fee payments to Experian every month. Our agreement with Experian means we can do this without performing a hard credit check.

All you need to do is pay your membership fee on time, and this can build your credit score.

Please note that Pave memberships cannot guarantee to improve your score. Pave Lite is reported as account type 64 - other rental to Experian