Nearly half of the card holders have a poor credit history but can rebuild their credit score by limiting their usage.
Tandem Bank has announced its Journey Card has assisted nearly three-quarters (72 per cent) of its users to first-time credit or is helping individuals with poor credit history get back on track.
The credit card named the Journey Card launched back in early October. It is aimed at customers with limited to no credit history who struggle to obtain credit. Due to the higher risk users it targets, the credit card carries a reasonably expensive representative APR of 24.9 per cent.
Tandem says it hopes to help the 43 per cent of Journey Card holders who have poor credit history, some of whom have defaulted with other providers. By offering credit and limiting its usage, the card enables these individuals to rebuild their credit scores over time and improve their chances of being granted a mortgage in the future.
Sven Schindele, head of banking products at Tandem, said: “Building a healthy credit score is important and too many people are either disengaged from credit or misuse it. With the Journey Card we are allowing people to take control of their finances and build up their score by spending responsibly.”
Now in its sixth year, the AltFi London Summit returns on 18th March 2019 to 155 Bishopsgate. Last year proved to be a crucial turning point for the key players building the future of finance. Leading platforms launched oversubscribed IPOs, digital banks proliferated and mainstream financial institutions started their own disruptive propositions. With 2019 certain to be another landmark year, more questions will be asked by regulators with investor interest in disruption also poised for more rapid growth.