CRED unveils Svalbard to simplify credit management and boost scores

CRED has launched Svalbard, a suite of credit management tools aimed at helping its members improve credit scores, manage multiple cards, and access secured credit without liquidating investments.

"Svalbard is about making responsible credit behaviour easy," said Kunal Shah, Founder of CRED, at a recent event. The new offerings include a predictive credit score tool, enhanced card management features, and instant loans against mutual funds.

The new credit score system is designed to offer deeper insights and proactive alerts. Foresight, a machine learning-based simulation tool, predicts how specific financial actions—such as applying for a new loan, increasing credit utilisation, or missing a payment—will impact a user’s credit score.

"Before you take a loan or miss a payment, you’ll know exactly what happens to your score," said Shah, adding that the tool provides personalized risk assessments based on a user’s past credit behaviour.

Compass functions as a personalised credit improvement roadmap, analysing users' spending habits and suggesting high-impact actions to boost their scores. It also estimates how long it would take to reach a target score based on these changes. For example, it might recommend reducing credit utilisation, keeping older credit accounts open, or diversifying between secured and unsecured loans.

Alongside credit scoring enhancements, CRED has introduced a unified credit card dashboard, consolidating data from multiple credit cards into a single interface. The platform processes over 10 million unbilled transactions daily with a 92% categorisation accuracy, helping users track their total dues, upcoming EMIs, and spending patterns without logging into multiple bank portals.

To address hidden charges and billing errors, CRED Protect, an anomaly detection system, scans statements for unauthorised fees, incorrect interest charges, and unexpected term changes. "We detected over Rs 11,000 crore in hidden charges and late fees over the past year," said Shah. The platform also simplifies the dispute resolution process by providing direct call options to issuers.

Another key launch, CRED Cash+, enables creditworthy users to borrow against mutual fund holdings at rates starting from 8.99%. "Less than 1% of India’s Rs 33 lakh crore mutual fund assets are pledged, even though many of these investors take personal loans instead. That doesn’t make sense," Shah said. The platform aims to make such borrowing "frictionless" by eliminating paperwork and human intervention.

Shah also announced the CRED Foundation, funded with 1% of the company's ownership. It will focus on financial literacy and fraud prevention in partnership with government agencies.

"Credit should not be a source of anxiety," Shah said. "With Svalbard, we are giving people control over their financial future."