Plans revealed to help people build credit file in just three months

If you have little or no credit history, you may benefit from a new service from Experian.

The credit reference agency is launching an initiative to help people in your position – so-called credit invisibles – get better access to mainstream financial services.

Research by Experian has shown there are between 4-5 million credit invisibles in the UK. When you’re in this position, you're much more likely to be turned down for financial products or end up paying a premium for them.

You may find yourself in this situation if you’re:

• on a low income
• a recent immigrant or returning expat
• a young person who hasn't built up a credit record
• an older mortgage-free person who has had limited use for credit in the past

Whatever the reason, the new service will make it possible for you to build your credit file and generate a score for free in as little as three months. You’ll be able to do this with three months of statements taken directly from your bank account or by signing up with certain credit providers.

And there’s another potential benefit of the service. As well as finding you’re ineligible for certain financial products, as a credit invisible, you may struggle to access vital public services. This is because it can be difficult to verify your identity during online application processes due to a lack of financial information. Along with helping you build a credit file, this new initiative should also make it easier for you to confirm who you are.

The scheme will be piloted with a limited number of providers this summer before being launched in full.

If this is something you may be interested in, watch this space – we’ll provide more details as they become available.