Millions of people are locked out of mainstream credit with no clear way in, according to Building Better Borrowers, the first Impact Report from credit-building and financial wellbeing platform Loqbox, published today.Drawing on data from more than 291,000 members, compared with more than 300,000 similar consumers who hadn’t used Loqbox, it finds that when people are given an alternative way to demonstrate their financial reliability, they can build stronger credit profiles without relying on high-cost borrowing.The UK credit system works well for those already established in it. But between four and five million people have little or no credit history, more than 16 million have experienced adverse credit, and many self-employed people earn in a way that doesn’t fit the pattern lenders expect. These consumers are usually labelled ‘sub-prime’, which describes where their credit file sits today and says little about the borrower they could become. Loqbox calls them pre-prime: people who haven’t yet had the chance to prove themselves, with many already doing the right thing. A new survey of 2,000 UK adults, commissioned alongside the report, found that nearly two-thirds (62%) have been declined for credit, a phone contract or a rental in the last two years, and more than a third (37%) of those say they paid every bill on time.There’s also been a lot more focus across the industry on how people can build a stronger credit profile safely and effectively. Last year, the FCA published findings that questioned how effective certain credit builder products are for consumers.The cost of getting startedFor anyone starting out, the standard advice is to take out a credit card, use it a little and repay it every month. But the cards most readily available to people with little or no credit history are among the most expensive on the market. Almost half (49%) of UK adults have taken out credit they didn’t need just to build their score, and almost half of those (48%) struggled to repay it.This is the price of the ‘first-rung premium’: credit builder cards average around 36% APR, nearly double the 18.9% on student cards. Yet nearly seven in ten 18-year-olds hadn’t secured a university or college place by results day this year, so for many young people, that cheaper option isn’t on the table. A product sold as a stepping stone can become a long-term cost, and the people least equipped to manage high-cost credit are often the ones most likely to be offered it.What building better borrowers can look likeAnalysis of almost 600,000 consumers revealed that members who paid Loqbox every month for a year, and didn’t miss payments elsewhere, saw their credit score rise by around 73 points on average. Comparable consumers who didn’t use Loqbox saw no increase. Among members new to credit, credit card holding rose from 15% to over 46% (against 22% to 29% for comparable consumers), while average balances stayed broadly stable at around £450.When people can build a track record without carrying high-interest balances, they arrive in the mainstream credit market better prepared, gaining access without a build-up of debt. That’s what “building better borrowers” means: responsible access, rather than access at any cost.Tom Eyre, Co-Founder and CEO of Loqbox, said: “Millions of people shut out of mainstream credit are managing their money responsibly and could be the prime customers of tomorrow. They just haven’t had the chance to prove it on paper. Our first Impact Report shows what can happen when they’re given a safer way to build a track record: stronger credit profiles, wider access to mainstream products and no build-up of debt along the way. The task is not to lower the standards for accessing credit. It is to give more people a fair opportunity to meet them.”More than a scoreThe impact of a limited or adverse credit file goes beyond the score itself. Nearly half (43%) of UK adults say their credit history has delayed a major life milestone, including buying a home (21%), moving out (18%) or leaving a relationship (14%), according to the new survey.For Loqbox members, the benefits go beyond credit scores too. Since 2021, over 370,000 members have saved more than £151 million, and 47% of surveyed members feel more confident about their finances.Responsible behaviour often goes unseen by the credit system: rent paid on time, irregular but well-managed income, or a credit history built overseas. Declan Jarvis, a Loqbox member who moved to the UK from South Africa and works in finance, found he didn’t exist to lenders despite being a UK citizen with no history of debt: “Every time I checked, it just said I didn’t exist. I literally live here, but the system refused to acknowledge me. When I couldn’t pass a credit check for a flat, it suddenly felt really stressful, because I knew it would only get harder when it came to a car or a home. You assume if you’re sensible with money, it’ll all work itself out. It doesn’t.”A better way inGreater access isn’t always a better outcome. Credit needs to be appropriate, affordable and offered when someone is equipped to manage it.That’s why Loqbox is calling for a better way in: an end to high-cost credit as the default first step, a restart of the FCA’s work on minimum payments, and updated guidance that reflects the range of ways people can now build a credit history and is clearer about the cost of the products most often recommended. The public agrees: 91% say people should be taught other ways to build credit besides a credit card, and 84% say people shouldn’t have to take on debt to prove they can be trusted.By recognising progress, rewarding responsible behaviour and matching access to readiness, the industry can build better borrowers and give credit where credit’s due.NoYesInfrastructure13 Nov, 2026