Earlier this year, Netflix’s series, Explained, which provides short easy-to-understand overviews of different topics, released a spinoff series called ‘Money, Explained.’ Each episode of the show delves into a different financial topic, including pyramid schemes, student debt, and retirement.
One of the episodes explores the topic of credit — specifically, what it is and how to build it.
It seems that the conversation around credit and how to build a good credit score is becoming more ubiquitous. Search inquiries like “how long does it take to build credit from nothing” and “how to build credit when you have none” rose by more than 5000% compared to last year, according to Google Trends.
The newfound interest from consumers could be fuelling an incentive for financial service providers to add more credit building services.
According to Robin Saks Frankel, credit cards and personal finance writer for Forbes Advisor, these types of products give financial institutions access to millions of people who may otherwise remain invisible to the system.
“Financial institutions and alternative lenders have begun to recognize these inequities in the financial system. They see that there’s an opportunity to provide a credit-building product to the millions of consumers who have little to no credit and thus don’t have access to certain types of wealth-building opportunities, like home ownership,” said Saks Frankel.
A couple of years ago, credit bureau Experian added Experian Boost to its tools — a product that allows customers to actively submit their utility data to build their credit profiles. Recently, Experian announced that since Boost’s launch, 60% of people using the tool have seen their score go up, including 85% of thin-file consumers.
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