When will the booster card be available
Hi @Linda87 the team are currently hard at work crafting the Booster product, based on the fantastic feedback we received from everyone who took part in the surveys.
We don’t have a firm timeline that we can share at the moment, but as soon as we do we’ll be sure to let everyone in the Tymit community know
What’s a Booster card?
Its a way of proving to Tymit you can lend from them.
Example: You give them £500
Your credit limit is £500
Im guessing after 3 months or so they will start to trust you with the official Tymit product, i suppose its good for opening the doors to people who get declined but want the chance to experience the new style of credit card thats being introduced
It’s not a massively far fetched concept, but I don’t think it’s a good one from a business angle.
There are companies out there who you “save” with and technically you are repaying an assumed loan and they report the repayments.
There are also some regulatory concerns involved, around affordability. It something is deemed not appropriate for an applicant, offering that to them could put the lender in hot water, especially if it was ever challenged.
Affordability will me the next PPI scandal in my opinion.
Oh no I completely agree and it will be interesting to see what the FCA think when it’s launched.
It’s not going to improve credit it’s just a scapegoat for Tymit not to have risk.
so a savings account then
You mean it’s a secured credit card?
There are a couple of firms who issue them in the UK but it’s not a popular option here.
Capital One for one offered them here - not sure if they still do.
I have done some research and what i have found is there are no secured credit card offerings in the UK from Mainstream companies
I have a quick update for you on Tymit Booster…
We’re building and testing at the moment, but we’re aiming to launch a beta version to a small group in January!
There’ll be some more updates soon. I can see that there are some good questions about how it’ll work, so we’re looking forward to sharing more info.
Having had a sneak peak, I can tell you it’s pretty exciting, so watch this space
Can you share any answers to the following questions whilst the community that were not accepted for the original product for us to understand more about the drawbacks and the postives?
- How do we join the beta or register interest?
- What is the minimum safety deposit we need to make?
- How long do we have to stay on the Booster Platform before being considered “Full Tymit”
- Will all the features be the same as regular tymit
- Is out deposit money protected / used to invest or is it held securely and covered by the FSCS?
- Is the Booster Card regulated and approved by the FCA?
Hey @Jamesj015, thanks for your questions. I’m going to check in with the Booster team for you and see what kind of update they can give
Thank you for that @Oisin. These were just questions that I had as I was curious at the behaviour of Tymit with this product as it’s uncommon for UK creditors to offer secured credit in this age. Plus there is not a lot of regulation around this type of product as it’s technically not lending
Thank you for your questions – I’m the Product Manager for the new Tymit Booster product so I’ll try answer as many as I can!
How do we join the beta or register interest?
Currently we’re registering people’s interest at the end of their Tymit application, but if you haven’t registered your interest yet I would be happy to add your email to the waiting list! Please email firstname.lastname@example.org.
For joining the beta test, we’ll be reaching out to a small group of people from the waitlist in the coming weeks.
What is the minimum safety deposit we need to make?
We’re still finalising the details, however the minimum is likely to be a low amount. A lot of people have mentioned to us that they would like to start off small and build up their deposit over time . Just bear in mind that the security deposit will equal the credit limit offered.
How long do we have to stay on the Booster Platform before being considered “Full Tymit”?
It’s a great question and a lot of people have asked about this. Initially the deposit requirement will be 100% (meaning a £100 deposit equals a £100 credit limit for example) and we’ll be looking for ways to reduce this over time as people’s credit scores improve. However, right now the deposit requirement is likely to stay at 100% as we test out the product.
Will all the features be the same as regular Tymit?
Yes, as well as a host of additional features.
Tymit Booster users will still receive a Tymit card, be able to spread the cost of purchases in instalments, have no fees when spending abroad, receive instant spend notifications and also be able to track their spending through the Tymit app.
As well as this, all spending with the Tymit Booster card will be at 0% interest. In 2021 we’re also going to be adding the ability to see your Experian credit score within the app, alongside tips to help you understand and improve your credit score.
Is our deposit money protected / used to invest or is it held securely and covered by the FSCS?
The deposit is collected and protected under e-money regulation, so it is 100% ring-fenced and never used for anything else (so never used for investing for example).
Is the Booster Card regulated and approved by the FCA?
Everything Tymit does is regulated, as an authorised credit institution (FCA) and as a payment services provider (PSR).
So yes! Tymit is regulated by the FCA to market financial products, which includes Tymit Booster.
I hope this answers your questions James and please let me know if there’s anything else
Thanks for taking some time to review my questions and your answers are really informative and it makes Booster look more lucrative than it did in the survey at the end of application
The only thing i was not sure about was your answer for my question:
Im not sure how much your allowed to share but looking at how im translating your answer does that mean you will be reporting to our “credit file” as the deposit given being “credit limit” and repayments showing as “Missed or Paid” that will help build the score or will this be internal criteria set out by Tymit?
It seems like when a users credit file starts to build its going to be for example:
Credit Limit: £500
(Made up of: Credit: £200 and a safety deposit of: £300)
Would it not be better to just say after a certain amount of time and a few soft checks a push notification to say “Your eligible to upgrade to Tymit” and we have refunded your safety deposit" ?
Im not sure, either way the questions you have answered are a big help its nice to know the money is safe and the product will actually be helpful in improving credit scoring
Thanks for getting back to me @Jamesj015
A Tymit Booster user will in effect have 2 accounts: (1) A debit account where the funds are kept securely and (2) a credit account.
If a Tymit Booster user has £500 stored securely in their debit account, this will mean the credit limit on the credit account will be £500. When a user spends money, it will come out of the credit account (like a normal credit card).
On the credit account we’ll be reporting balance/repayment history etc to Experian.
So at the start, the lending will be 100% “secured”, meaning a credit limit of £500 requires a deposit of £500. But over time, we may migrate people over to the standard Tymit credit card, where the lending is not secured by a deposit. We haven’t decided yet, but I like your idea! We could either migrate people slowly over time (so first you need 100% security, then 50%, then 0%), or we could just notify people that they can have their whole deposit back (100% straight to 0%). We’ll be interviewing customers about this in future to try work out the best way to do it, so stay tuned!
Do let me know if there’s anything else James, I’d be more than happy to answer any more questions you have
Thank you for spending time answering my question @Alastair-PM
I’m looking forward to giving it a try!
I was curious about the Tymit way , however I was offered just a possible booster card, my view is I won’t be asking for this card, I could put the deposit on add more each month but I’m just as easy to use my credit card I already have earn rewards and already have a credit limit with, and without a £6.95 monthly fee to effectively have access to my own funds, there is no clear trust ratio whereby Tymit say they will trust the consumer enough to move to one there normal products and this is a factor to my decline in the product. I won’t pay a fee for a undefined amount of time. Your card has good thinking and for those who can get it will I’m sure be great customers , saves them interest make Tymit little profit however seems chooser to get like other high profiler cards, I’ll stick to what I have already.
The Booster Card isn’t available yet @Jazza however after new year there will be more information about it!
Have a look at the questions I asked above. I was a bit curious about the Booster Card at first