On 10 November 2025, the Financial Conduct Authority (FCA) issued a statement of its review into understanding and improving how credit builder products operate.

The FCA’s review focused on specific credit builder products that typically do not involve regulated credit which report consumers’ regular payments to credit reference agencies with the sole aim of helping consumers build their credit score or history.

The FCA mentions in its key findings that for most consumers there was little evidence of credit builder products significantly improving credit scores. In some cases firms reporting payments on these products to credit reference agencies potentially misrepresent a consumer’s financial circumstances. Where consumers are experiencing financial difficulty, the FCA found that these products are less likely to positively affect credit scores and may reduce the amount of income available for essential living expenses. And finally, the FCA found that the majority of credit builder products it looked at were unregulated credit, and firms often failed to clearly explain their limitations and risks.

The FCA will continue to work with firms offering these products and decide whether to take further action. The regulator has also engaged with credit reference agencies on new data reporting guidance to ensure only appropriate information is reported that accurately reflects repayment performance.