Railsr partners with DND Finance to launch Score Credit Mastercard

Branded as the Score Credit Mastercard by DND, it is aimed at personal users and business owners with a less-than-perfect credit record, including entrepreneurs and students. The card is also Shariah-compliant.

DND uses the Railsr platform for its UK Banking-as-a-Service (BaaS), licensing and card services. As stated in the official press release, it chose Railsr as the issuer because it did not want to manage every single part of the implementation process, including linking to key partner platforms and getting a Bank Identification Number (BIN).

DND has created the card based on the knowledge that a good credit record is built when people develop a history of paying bills on time, such as credit cards, lines of credit and loans. With the Score Mastercard, a user decides what limit is best for them, transfers a security deposit to DND, starts using their card for everyday expenses, and consistently pays their bills on time. That payment history is reported to the UK credit agencies and their credit improves.

Helping to build a credit record

DND traditionally works with small and medium enterprises (SMEs) and entrepreneurial companies in the UK and Canada that are typically ignored by larger lenders. It provides vendor financing programmes to manufacturers and works closely with small-ticket brokers of equipment finance. It also provides loans to professionals, from physicians to accountants and architects.

DND’s services provide a way for underfunded entrepreneurs to obtain financing – to open a new business or continue the business they have when they need funding.

For many people, building credit in a responsible way can help them on the path to homeownership. A better credit record can also mean incredible savings by allowing the homebuyer access to a lower interest rate.

Therefore, aiming to help consumers build a credit record, companies like DND can connect directly to a consumer’s bank account and report recurring, on-time payments to the credit bureaus. Consumers are spending and paying on time in many areas of their life, and this should count toward their creditworthiness.

How fintechs are changing credit cards

There are a plethora of co-branded credit cards coming into the market today. Credit cards are undergoing a redesign, and fintech companies rise up to the challenge of disrupting how payments work in other industries.

The fintech firms offer a virtual card with a particular credit line. After days, they provide the user with a physical card with the addresses mentioned on it. Fintech cards can be availed by anyone without a credit score, but it doesn't mean that a person with a low credit score can also acquire a credit card from fintech providers.

The card economy is starting to thrive and go mainstream in fintech. It is becoming easier for individuals or businesses to start their own card programs – as well as for consumers or businesses to find cards that match their unique needs. Over the next few years, there will appear more cards that match the needs that people have – and a faster time-to-market for creating industry-specific cards.