UK consumer credit provider Creditspring has launched ‘Step’, a credit enhancement product designed for people with limited or no credit history.
“Step is giving more people the opportunity to build credit responsibly with a fixed-fee financing subscription – eliminating the risk of spiraling debt,” the London-based company said in a press release on Monday 21 March.
“To reduce consumer reliance on loans, Creditspring’s goal is to remove financial barriers, simplify an industry that many consumers find complex and confusing, and give people the tools and guidance they need. need to build credit, understand their finances and make informed decisions,” said Creditspring.
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 achieve financial stability before taking out loans or mortgages. lines of credit.
The hub also allows members to receive monthly financial health checks and personalized support to manage and save money, and access low-interest loans.
Step is one of several recently launched consumer credit products designed for underserved consumers.
Read more: TransUnion launches BNPL credit tool
Last month, TransUnion launched a new suite of solutions designed to help the 100 million people who use Buy Now, Pay Later (BNPL) services.
“Including point-of-sale loans, including BNPL, in credit reports and other risk management tools can help tens of millions of consumers access more credit opportunities and potentially get better loan terms,” said Liz Pagel, senior vice president and consumer. Head of Lending Operations at TransUnion.
Pagel said the credit bureau has spent three years working with BNPL lenders to find a solution that won’t penalize consumers for frequent use of BNPL.
This launch follows last year’s expanded partnership between TransUnion and the BNPL Sezzle platform to allow users to establish and build credit based on their Sezzle repayment history.
The partnership allowed Sezzle users eligible for Sezzle Up to have their repayment histories sent to TransUnion, helping them improve their financial situation.