Like any credit product, a credit score building product like Pave comes with risk, and may not be appropriate for you.
For example, if you do not pay your Pave membership fees on time, or fail to repay any credit extended to you on time, you may harm rather than build your credit score. You also need take the personalised actions we recommend (Plus membership only) to maximise the impact our product can have on your score.
Additionally, even if you make all your repayments on time to Pave, there are circumstances where using Pave may improve your score, but will not be a good investment for you. Here are some examples of these instances:
- If you have CCJ in the last 12 months
- If you have been put on an IVA or debt management plan in the last 12 months
- If you are going through a bankruptcy
- If you have any late debt or bills payments
- If you think you are at risk of any of the above happening after you join Pave
- If you already have a good credit score, and there isn't much space to improve
If any of the above apply to you, using Pave to build your credit score may not be a good idea. This is because even if you build your credit score, many lenders may not extend credit to you on the basis of you having such markers on your credit file. Your credit score is a proxy of your credit worthiness, and lenders will consider a broad range of criteria in your credit report such as your affordability and credit history.