Building credit is a catch-22, access to financial products is required to build credit history but it is hard to get started without good credit already.
Nyble helps Canadians build credit history with an interest-free credit line, even without a prior credit history. We had the chance to talk to the Nyble team and learn more about how they are helping Canadians build their credit history.
First, can you start by explaining what Nyble is and what you want to achieve?
A good credit score provides more than just access to financial products. It touches every part of our daily lives. More than half of employers and more than a three-quarter of landlords check credit. Without a good credit score, everything costs more, from loans to insurance to qualifying for a mortgage to buy property.
Nyble’s solution is to provide a more accessible on-ramp to the credit system. Instead of underwriting customers based on their credit history, customers are approved for a small credit line (up to $150) based on their banking data and income. As customers make repayments, Nyble helps report their payment history to the credit bureau to help establish a credit history. Additionally, customers can use the credit line to cover a costly overdraft fee from their bank.
How does Nyble work?
When you sign up for a free Nyble account, Nyble will assess your application and approve you for a certain limit based on your income and no credit check. As repayments are made, you build your rapport with the platform and limits are then increased over time. With a Nyble account, you can also track your credit scores over time and get alerted to changes to your credit. As you increase your scores, you are also rewarded with redeemable reward points for increasing your score or reducing debt.
How can Nyble help in building credit history?
The shocking statistic is that more than 1 out of 3 Canadians have 2 trades or less on their credit report, making it difficult for them to access financial products. Because a credit score is not required to use Nyble, users can start building credit even without any prior credit history. Each month, credit line payments with Nyble are reported to the credit bureau. Positive payments may help improve a user’s credit score. Over time, as users improve their credit, they may then be able to access other financial products such as personal loans, credit cards or mortgages.
Nyble doesn’t charge interest or late fees, what’s the catch?
Nyble can be used completely free of charge. However, users can also opt for a paid membership option ($11.99) which comes with access to additional features, including faster funding options, full credit reports, and digital identity protection. The paid membership also comes with a free 30-day trial in case you want to try it out first.
How is Nyble different from other lenders?
- Builds credit history – not all lenders report credit. Nyble reports your payment history each month to the credit bureau to help you build credit.
- No credit requirements – unlike traditional lenders, Nyble does not conduct hard or soft credit checks, and applying does not affect a user’s credit score. Instead, Nyble evaluates customers based on their direct deposit income and banking transactions.
- No late fees or interest – There is never any compounding interest or late fees. Banks make most of their income from compounding interest and fees when people fail to pay their bills on time.
- Easy to access & affordable – users can access funds within a matter of minutes without visiting a branch or filling out long forms.
What type of consumer would benefit most from choosing a Nyble line of credit?
Folks looking to build or rebuild credit, newcomers to Canada, and customers who are looking for a source of funding in the case of an emergency.
Do users have to reapply every time they want to withdraw money from their Nyble credit line?
Once a user is approved, they will always have access to the credit line given a good repayment history, which is what differentiates Nyble from other lenders, whose approval amounts can be unreliable and shift over time.
Users can earn points through Nyble, how does this work and what can they do with the points?
Nyble rewards users with points when they make good money decisions, these may include successful repayments, when a user increases their credit score, or when users reduce debt. With points earned, users can redeem them for gift cards or unlock a higher tier of approval amounts on their Nyble line.
Nyble automatically processes repayment, what happens if a user doesn’t have sufficient funds in their bank account?
Nyble uses the latest technology to minimize the chance of an overdraft, which is one of the problems Nyble is trying to solve! Nyble uses your active bank connection to check the account to see if there is a balance before it puts a payment through, and if a user doesn’t have sufficient funds, the payment is rescheduled for another time when the funds do arrive. Users can also repay anytime by logging into the website or app.
Do users need to download the Nyble app to take advantage of your line of credit?
Not at all! Users can both use Nyble through the website (nyble.com), or by using the mobile app.
Finally, do you have any new or upcoming launches you can tell us about?
The Canadian financial system is lacking in innovation compared to other leading countries such as the U.S. and UK. Access to credit is just the tip of the iceberg. Nyble working on launching a full suite of financial products to better serve Canadians.