The Credit System is Broken - Here’s Why it Matters
If you've ever been rejected for credit, you're not alone.
For millions of people across the UK, a "no" from a lender doesn't reflect laziness or irresponsibility — it's often the result of a system that doesn’t see the full picture.
How Credit Reporting Works
In the UK, there are three main credit reference agencies (CRAs):
Experian
Equifax
TransUnion
These agencies collect data from lenders, banks, utility providers, and public records to create your credit report and assign you a credit score.
Your score is typically based on:
Payment history (on-time vs missed payments)
Credit utilisation (how much credit you're using vs your limit)
Credit age (how long you've had credit accounts)
Types of credit used (loans, credit cards, mortgages)
New credit activity (recent applications)
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Why This System Excludes Millions
While the system works for some, it disadvantages many — especially those who are “credit invisible” or subprime:
1. Thin Credit Files
People with little or no borrowing history (e.g., young adults, recent immigrants) often lack enough data to generate a meaningful score.
➡ Result: Many are denied credit even if they’re financially stable.
2. Non-Traditional Incomes
Workers on zero-hour contracts, freelancers, or those with fluctuating income may appear “risky” due to perceived instability, even if they’re earning enough to meet obligations.
➡ Result: Penalised for not fitting into traditional employment patterns.
3. Historical Mistakes
Missed a bill payment 12 months ago during a tough month? That negative mark can stick around for up to six years.
➡ Result: The system weighs past slip-ups more heavily than present stability.
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What Happens to People Locked Out of Credit?
When rejected by mainstream lenders, many turn to:
High-cost short-term credit providers (e.g., payday lenders)
Buy Now, Pay Later schemes
Doorstep lenders
These often come with high interest, fees, and a greater risk of debt spirals — especially when the cost of living is already rising.
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A Smarter Way to Assess Affordability
We believe access to credit shouldn't depend on outdated scores. That's why we built CashWave — a fairer way to borrow based on your real-time financial situation using open banking.
Borrow up to £300
Repay over three months
No interest, just a flat fee of £30
No penalties for early repayment
No reliance on a traditional credit score
What’s Open Banking?
It’s a secure system that allows consumers to share their banking data with lenders. This means SteadyPay can assess your actual income and spending patterns to decide what you can afford — not just what your credit history says.
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Credit Should Work for You — Not Against You
The current system is biased towards the past. But life happens in the present. At SteadyPay, we’re working to create a future where credit is inclusive, ethical, and built around your real life.
Want to try a better way?
Download the SteadyPay app and see if you're eligible for CashWave.