UK’s Creditspring Launches New Credit Building Tool

U.K. consumer credit provider Creditspring has launched “Step,” a credit-building product designed for people with limited to no credit history.

“Step gives more people the opportunity to build their credit responsibly with a fixed-fee finance subscription – eliminating the risk of debt spiral,” the London-based company said in a news release Monday (March 21).

“To reduce a consumer reliance on loans, Creditspring’s aim is to break down the barriers associated with finances, simplify an industry that many consumers find complex and confusing, and give people the tools and guidance they need to build credit, understand their finances, and make informed decisions,” Creditspring said.

Creditspring said consumers can sign up for free and access services like Step and its Stability Hub, which is an education and support resource designed to help consumers reach financial stability prior to taking out loans or lines of credit.

The hub also lets members receive monthly financial health checks and personalized support to manage and save money, and get access to low-interest loans.

Step is one of a number of consumer credit products launched recently designed for underserved consumers.

Read more: TransUnion Launches BNPL Credit Tool

Last month, TransUnion launched a new suite of solutions designed to hep the 100 million people using buy now, pay later (BNPL) services.

“The inclusion of point-of-sale loans including BNPL into credit reports and other risk management tools can help tens of millions of consumers gain access to more credit opportunities and potentially secure better loan terms,” said Liz Pagel, senior vice president and consumer lending business leader at TransUnion.

Pagel said the credit bureau spent three years working with BNPL lenders to find a solution that won’t penalize consumers for frequent BNPL use.

This launch followed last year’s extended partnership between TransUnion and BNPL platform Sezzle to allow users to establish and build credit based on their Sezzle repayment history.

The partnership allowed Sezzle users who qualify for Sezzle Up to have their repayment histories sent to TransUnion, helping upgrade their financial status.