Credit Builder

Use Case: Credit Builder

Problem

57 million Americans are living with subprime credit, and 1 in 3 American adults aren’t able to obtain a credit score. They’re often denied financial services such as credit cards and loans, and pay higher interest rates for the credit products they access.

Rejection after rejection, they’re often stuck with their score, unable to improve it. Fintechs are developing solutions to help build credit for those who were previously denied options.

Building credit builder features requires sophisticated cashflow and risk analysis, data engineering, and data science effort in order to:

  • Determine the credit limit that a person can afford to take on and repay 
  • Accurately report positive bill and rent payments
  • Reduce float risk and ensure that the transfers can clear
  • Provide users with insights and recommendations for building their credit and paying down debt

How we help:

Bill and Subscription Detection

Instead of relying on a consumers’ self-report of what bills they have and when they pay them, Pave allows you to:

  • Track recurring bills and predict the next bill date and amount.
  • Receive a unified view of a user’s insights including bill, rent, utilities, BNPL, and subscription payments as well as repayment history.
  • Provide users with the Deposit Amount Required to keep their account from overdrafting before a bill payment.

Deposit Amount Required

Given that many people live paycheck to paycheck, it can be difficult for users to understand how much money they need at a certain time to be able to cover their bill payments, especially when unexpected expenses arise.

Pave allows you to retrieve a field that tells fintechs how much a person has to deposit in order to pay upcoming bills and avoid an overdraft. This allows you to:

  • Predict the required deposit amount to maintain a positive balance
  • Reduce overdrafts by recommending users suggested deposit amounts

Detect Other Financial Accounts

Often times a user will connect an account that has insufficient account history or doesn’t meet your qualifying criteria. 

Pave allows you to prompt users to connect additional accounts that have been detected in transaction history to:

  • Increase acceptances by prompting users to connect a different account if their connected account does not have sufficient history or data
  • Improve risk models by analyzing signals and behaviors across multiple connected accounts

Embed Bill Payments within your App Experience

Users face difficulty juggling multiple bill and subscription payments, which can lead to them missing payments, or not keeping track of how much money they have in their account when a due date comes around.

Pave is partnering with bill payment solutions to make it seamless for you to embed bill payments within your app experience: