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Pockit releases credit builder product

Pockit, the UK fintech providing vital financial services to people whose needs aren’t met by the traditional banking system, today announces the official launch of its ‘Fast Track to Credit’ credit builder product.

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The service will help people locked out of the financial system quickly improve their credit scores, allowing Pockit’s customers a safe, regulated and sustainable route to access a wider range of financial services requiring a good credit score, such as loans, mobile telephone contract or car finance.

With an easy set-up process and rapid frictionless approval, the product is offered to customers in Pockit’s top tier of subscription plans. Customers are given a virtual loan which is created and held in savings, against which the customer pays a monthly sum to mirror a repayment scheme. These repayments are reported to the three major UK credit agencies, Experian, TransUnion and Equifax, in order to assist customers in building their credit profiles quickly. Missed subscription payments are not reported to credit agencies and will not harm credit scores. Should customers make back the payments as scheduled for three months, then they are offered a real loan between £50 and £300, repayment of which further helps improve their credit profile.

Customers on the Fast Track to Credit plan also have access to Pockit’s wide range of personal finance products. For further peace of mind, customers on the plan get automatic purchase insurance cover of up to £1,000 against accidental damage and theft. They are also able to access a set of unique rewards, including up to 15% cashback and discounts on a range of leading high-street brands, as well as boosted cashback of 2.5% on other spending and direct debits. All eligible Pockit customers whose salaries are paid into Pockit accounts will also be able to benefit from Pockit’s recently launched Income Advance product, whereby they are able to gain a cash advance of up to £100 from their salary or benefits with no hard credit checks. Further, customers can receive their whole salary or benefits BACS payments one day earlier.

The launch of the credit builder product comes as UK consumers are squeezed by the twin pressures of cost-of-living increases and reduced availability of credit. Research published by ClearScore and EY in February 2024 found that the number of loans extended to UK customers with the lowest credit scores had fallen by 76% since 2019[1], while a survey conducted last year for the Money and Pensions Service found that nine million adults (one in five) were declined for credit in the previous twelve months, with young people and parents particularly badly impacted.[2]

“We are motivated by looking after our customers and giving them a helping hand. Too many people are shut out of the financial system due to low credit scores, leaving them unable to access essential financial products like loans, car finance or telephone contracts,” said Virraj Jatania, CEO and Founder of Pockit. “We have listened to our customers who have said they want a little extra help in building their credit scores from a provider that they trust. Following successful testing, we’re delighted to be introducing the Fast Track to Credit plan to help support our customers develop a strong credit score in a way that is safe and reliable, empowering them to take more control over their financial journeys.”

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