How does Pave Plus work?

Pave Plus can improve your credit score by encouraging on time payments of your recurring expenses, and by improving your credit utilisation rate (the amount of available credit you are using). This credit line can improve your credit utilisation if used responsibly. Your credit utilisation rate is one of the largest factors that impacts your credit score, together with repayment history.

This is how it works:

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 recurring expenses. On time payments show that you can repay expenses on time and in full, and can help build your credit score.

3. Subject to eligibility, we will open a credit line that can top up your bank account with enough balance to pay recurring expenses in full. 

4. Paying your recurring expenses on time means you are using our credit line responsibly. Pave can share this positive behaviour with all three major UK Credit Reference Agencies (CRAs).

5. This means Pave can build:

- Your Experian credit score
- Your TransUnion credit score (since Credit Karma shows your TransUnion score, we can also impact your score shown in the Credit Karma app)
- Your Equifax credit score (since ClearScore shows your Equifax score, we can also impact your score shown in the ClearScore app)

Pave Plus also lets you track your TransUnion credit score in the app, subject to security checks. You do not need to do any hard credit checks to use Pave.

Please note that Pave memberships cannot guarantee to improve your score. Pave Plus is reported as account type 04 - Revolving account to CRAs.