Nearly 25.1 million U.S. consumers lack access to mainstream credit, such as credit cards. Nearly 38.7 million U.S. consumers have damaged credit.
In recent years, community development financial institutions, nonprofit organizations, and fintech companies have expanded their offerings of financial service products aimed at helping consumers build credit. These credit-building products include small-dollar loans and low-limit secured-debt credit cards.
Despite the potential benefits, only an estimated 1.2% of consumers in need use credit-building products.
This report estimates the market size for credit‑building products and the geographic areas with the highest concentration of consumers with damaged credit. It also provides qualitative insights into the providers for credit-building products and the people using such products.
