Loqbox Report Reveals 12 Million Brits Locked Out of Credit Despite Paying Bills on Time

Loqbox’s inaugural Impact Report reveals that millions of UK consumers are currently locked out of mainstream financial services due to a lack of credit history rather than poor financial management. For fintech providers, this "pre-prime" demographic represents a significant untapped market that can be safely onboarded through alternative data and credit-building tools rather than high-cost borrowing.

What was announced

Loqbox’s Building Better Borrowers report analyzed data from over 291,000 members against a control group of 300,000 non-users. The findings highlight a systemic gap: while the UK credit system serves established borrowers, between four and five million people have little to no credit history, and 16 million have experienced adverse credit. A survey of 2,000 UK adults conducted for the report found that 62% had been declined for credit, a rental agreement, or a phone contract in the last two years. Notably, 37% of those declined claimed they had paid every bill on time.

The report introduces the term "pre-prime" to describe these individuals. It challenges the traditional "sub-prime" label, suggesting many are responsible managers of money who simply lack a visible track record. According to the analysis, Loqbox members who made monthly payments for a year saw their credit scores increase by an average of 73 points, while the control group saw no increase. Furthermore, credit card ownership among members rose from 15% to over 46%, while average balances remained stable at approximately £450. This suggests that providing a structured path to credit allows consumers to access mainstream products without accumulating unmanageable debt.

"Millions of people shut out of mainstream credit are managing their money responsibly and could be the prime customers of tomorrow. They just haven’t had the chance to prove it on paper. Our first Impact Report shows what can happen when they’re given a safer way to build a track record: stronger credit profiles, wider access to mainstream products and no build-up of debt along the way. The task is not to lower the standards for accessing credit. It is to give more people a fair opportunity to meet them."

Tom Eyre, Co-Founder and CEO of Loqbox.

The companies involved

Loqbox is a UK-based financial wellbeing and credit-building platform designed to help consumers improve their financial standing through regular savings and reporting. The company has established itself as a key player in the "fintech for good" space, focusing on financial inclusion for those excluded from traditional banking products. Dani Palmer serves as a Consumer finance expert at Loqbox, providing guidance on navigating the credit landscape.

Innovate Finance is the independent industry body that represents the UK’s global fintech sector. Headquartered in London, it aims to accelerate the UK's leading position in financial services by supporting a more transparent and inclusive sector. The organization works closely with policymakers and regulators to ensure the UK remains a competitive hub for financial innovation. Janine Hirt serves as the CEO of Innovate Finance, advocating for the role of fintech in building household financial resilience. Both organizations are prominent fixtures in the British technology landscape, with Loqbox having been featured in 18 FF News reports and Innovate Finance appearing in 43, reflecting their active participation in industry discourse and policy development.

What FF News has reported before

FF News has followed the development of both organizations closely. We previously covered “Self-Care” or Self-Sabotage? New Loqbox Research Reveals the Top Excuses Brits Give for Not Saving, which explored the psychological barriers to financial health. Regarding the broader fintech ecosystem, we reported on how Innovate Finance Urges UK Action on Open Finance and AI to Secure FinTech Lead and noted that 90% of Fintech Leaders Set to Boost UK Investment Despite AI and Regulatory Warnings. Additionally, the industry body’s commitment to diversity was highlighted when Innovate Finance Releases its Third Annual Pride in FinTech Powerlist 2025 to Celebrate LGBTQIA+ Leaders Shaping the Future of Financial Services.

What this means

This report signals a necessary shift in how the industry categorizes risk. By rebranding "sub-prime" as "pre-prime," Loqbox is putting pressure on traditional credit bureaus and lenders to modernize their underwriting models. The fact that nearly half of consumers take out unnecessary credit just to build a score suggests the current system is inefficient and potentially harmful. For the wider market, the challenge is now one of integration. As fintechs prove that alternative data can accurately predict reliability, mainstream banks will face increasing scrutiny over their reliance on legacy metrics that ignore millions of potentially profitable, low-risk customers.