Experian has announced a new partnership with payments software provider, Paylink, to address affordability restrictions with debt consolidation loans.

The partnership aims to leverage Paylink’s ReFi product and expand access to credit for a wider range of consumers through the Experian marketplace.

Debt consolidation is the top reason for consumers searching for loans on the Experian marketplace, although the credit reporting firm said that many individuals who need these loans are struggling to qualify due to affordability restrictions.

Experian data revealed that 37% of debt consolidation loan applications are pre-approved on the Experian marketplace compared 59% pre-approval for credit card applications. The firm suggested that this often leads to illegal lending practices and over three million people have used an unlicensed lender or loan shark, while over 10 million have borrowed from friends and family.

Managing director of Experian Consumer Services, Eduardo Castro, said: “As people continue trying to get on top of their finances amid the increased cost of living, our aim is to remove any barriers that will prevent them from doing so. Our new partnership with Paylink will allow us to unlock access to credit for more consumers seeking to simplify the process of managing their debt.

“The benefit of this partnership is twofold, as the ReFi solution offers a valuable tool for lenders to expand their offerings and reach a broader customer base that may have originally been overlooked.”

Paylink CEO, Jake Ranson, added: “Against the backdrop of a prolonged cost of living crisis, ReFi has already proved its value to thousands of customers who, by shifting legacy debts to a new more affordable loan, have transformed their monthly household budgets.

“ReFi enables a financial ‘reset’, potentially leading to significant savings and quicker debt repayment. It also provides lenders with assurance that the new loan is affordable and will be used to clear previous debts, helping customers achieve their financial goals.

“With unparalleled access to data, analytics and market insight, Experian is singularly placed to help ReFi reach thousands more people seeking to realise the opportunities access to reasonably priced credit brings.”

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