Experian has announced plans for a new service that could help millions of financially excluded people get better access to mainstream financial services.

The initiative aims to help people with little or no credit history build out their credit files for free, in as little as three months.

The consumer credit reporter described people in this cohort as “credit invisibles”, and revealed that its own analysis indicates there are between four to five million people in the UK today who fit this description, many from low-income households.

However, Experian also suggested that not just those on the poorest incomes are affected by this issue, and other credit invisible groups include recent immigrants, or some returning expats, who may have little or no credit footprint, and therefore struggle to open bank accounts.

“New-to-credit” groups, primarily young people who have not yet established a credit record, are also affected, as are older people who have either paid off their mortgage and have limited use for credit, or who have not previously relied on credit and, therefore, have no file.

Experian stated that these people are experiencing difficulty in accessing mainstream financial services, warning that some are paying a “poverty premium” to do so.

Innovation director at Experian, Yaro Zozulya, said: “Our new service aims to help those who been unable to access mainstream finance to build their credit file in a simple, straightforward way. The trial period will allow us to test the customer journey and validate the approach so that we can then launch to a wider audience.”

Experian has confirmed its new service will be piloted with selected providers in the summer, and has plans to launch the full service through Experian Marketplace in the future.

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