Experian partners Paylink on debt consolidation solution

This collaboration is designed to introduce a debt consolidation solution through the Experian Marketplace, utilising Paylink’s ReFi™ product. The partnership is rooted in a shared objective to address the common affordability challenges that often prevent consumers from qualifying for debt consolidation loans.

Debt consolidation loans are intended to simplify and streamline the management of multiple credit commitments by merging them into a single loan with potentially more favorable terms. However, many consumers face obstacles due to strict affordability criteria, which can limit their access to such financial solutions.

Partnership details

Through this partnership, Experian and Paylink aim to alleviate these barriers by expanding access to credit, thereby promoting greater financial inclusion. The ReFi™ product offered by Paylink plays a central role in this initiative. It enables consumers to directly repay their existing credit commitments, such as credit cards and personal loans, by consolidating them into a new loan.

This process not only simplifies payment management for customers but also has the potential to lower their monthly financial burdens. Additionally, it mitigates the risk of accumulating further debt, which is a common concern among consumers with multiple credit obligations.

Experian’s data highlights a significant gap in loan pre-approvals on their marketplace, with only 37% of applicants being approved for debt consolidation loans, compared to a 59% approval rate for credit card applications. This disparity underscores the need for targeted solutions like those provided through the Experian-Paylink partnership. By integrating Paylink’s ReFi™ product into the Experian Marketplace, the collaboration seeks to bridge this gap, offering a viable path for consumers who might otherwise struggle to qualify for debt consolidation loans.

Working towards managing debt

Furthermore, this partnership benefits lenders by providing them with a tool to expand their offerings. The ReFi™ solution gives lenders confidence that the new loan will be used to repay previous debts, reducing the risk of default and helping customers achieve a more stable financial footing. This assurance is particularly valuable in the current economic climate, where managing debt is a critical concern for many households.

Overall, the collaboration between Experian and Paylink represents a concerted effort to address the financial challenges faced by consumers, particularly in the context of debt management and affordability. By combining Experian’s extensive data and market insights with Paylink’s innovative affordability solutions, the partnership aims to make a meaningful impact on the financial well-being of a broader range of consumers.