How We Can Fix A Credit System That Shuts People Out
The current credit system was designed with good intentions, but it's failing too many.
For decades, credit scores have served as the financial gatekeepers of modern life. They were created to help lenders assess risk, prevent fraud, and ensure responsible lending. In theory, it makes perfect sense: reward those who consistently repay, penalise those who don't. Simple, right?
But here's the uncomfortable truth: millions of financially responsible people are locked out of credit access simply because they don't fit into the system's rigid formula.
This isn't about people who defaulted or lived irresponsibly. We're talking about skilled professionals, hardworking gig workers, self-employed entrepreneurs, skilled immigrants, and countless others who manage their finances sensibly every month, but still hear "No" when they apply for credit.
The system, originally built to encourage financial responsibility, now excludes many of the very people it was designed to help.
The Blind Spots In Traditional Credit Scoring
The issue isn't with the idea of assessing creditworthiness; it's with how we assess it.
Traditional credit scoring relies heavily on historical data:
Past borrowing and repayment behaviour
Length of credit history
Types of credit used
Outstanding debts
Recent credit inquiries
If you haven't borrowed much (or at all), or if your borrowing history exists outside the UK (as is the case for immigrants and returning expats), you score low, regardless of how well you manage your money today.
And if you're self-employed, a freelancer, or part of the gig economy? Your irregular income patterns confuse standard models that prefer steady salaried paychecks.
The result? People with strong earnings, stable savings habits, and excellent financial discipline are labelled as "credit invisible" or "thin-file borrowers." They face higher loan rejection rates or get funnelled toward expensive, often predatory, lending options.
Real Lives Caught In The Credit Gap
Consider just a few common scenarios:
A skilled immigrant moves to the UK, secures a high-paying job, but can't access a car loan because their credit history doesn't exist in the UK.
A freelancer earning consistently for years gets declined for a business expansion loan due to income variability.
A young professional with steady employment and no debts finds themselves shut out simply because they haven't yet built a borrowing record.
A returning UK expat re-establishing life at home struggles to access credit after years abroad.
In every case, these individuals aren't high-risk. They're simply not recognised by the rigid scorecards in place.
A Better Way? Look At Financial Behaviour Today.
Modern technology finally gives us the tools to fill this blind spot. Thanks to Open Banking, lenders can now access real-time financial data:
Current income and earning patterns.
Regular savings contributions.
Spending habits and expense management.
Account stability and cash flow discipline.
Rather than guessing risk based solely on historical borrowing patterns, we can now observe actual financial behaviour as it happens.
This is where models like "Save-to-Borrow" come into play.
By demonstrating an ability to save consistently — say, one-third of a loan amount — borrowers directly prove their affordability and financial responsibility. Combined with Open Banking data and advanced data modelling, lenders gain a far more accurate, timely, and fair assessment of creditworthiness.
The result?
Responsible borrowers get recognised sooner.
Loan approvals increase.
Predatory lending risks decrease.
Financial inclusion expands.
Changing The Narrative: You Are Not The Problem
For many excluded borrowers, repeated rejections can feel deeply personal. It seems like a verdict on their worth or competence.
But the real issue isn’t you. It’s that the system isn’t designed for how modern financial lives actually work.
We need to shift away from outdated, one-size-fits-all scoring and toward models that reward real-world financial behaviours:
Building savings discipline
Managing expenses responsibly
Demonstrating consistent income, even if variable
When we widen the lens beyond rigid credit scores, we open doors for millions of deserving individuals who simply want fair access to the financial tools that allow them to progress in life.
Faciit’s Building That Alternative
At Faciit, this is exactly the problem we're tackling. We believe that good financial habits should count for something. That your current behaviour matters more than your lack of a borrowing history. Disciplined savers should be empowered, not excluded.
Our Save-to-Borrow model uses Open Banking data, behavioural insights, and lender-backed partnerships to create a structured and transparent path to fair, competitive loans, without relying solely on outdated credit scoring.
Ready for a system that finally recognises your financial responsibility?
Join our waitlist and be the first to access fairer credit opportunities designed for people like you.