- Digital bank Monzo has expanded its credit card offering to help individuals with poor credit scores, offering users a pathway to improve their files and lending ability over time.
- While the Flex Build credit card is already in operation, a new partnership with charity Fair4All Finance will offer an additional route to improve borrowing potential and access to affordable credit. It is estimated that around 16 million UK adults face barriers to borrowing.
- Eligible customers will be able to place a small deposit into an account which acts as an intent to borrow and repay on their part, and depending on the deposit amount, will then be able to borrow up to £250.
- The app will include features such as showing how much interest would be payable over different repayment lengths and a seven-day grace period for missed payments, using the deposit to cover shortfalls.
- Monzo’s general manager, Luke Enock, said: “With Flex Build, we’re introducing a new kind of credit product that helps people build a credit history and progress to mainstream options over time.”
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