The Good Credit Index brings together 21 different variables across the three streams to present a picture of credit in the UK in a more granular and comprehensive way than ever before. Funded by New Day and repeated each year from 2019-2021, it is allowing us to track progress over time, to identify the areas with the lowest access to good credit and to break down complex issues into their constituent parts. The index looks at 3 aspects of credit: first at credit need – are people in need of credit? This includes indicators such as the percentage of households struggling to keep up with bills, the percentage of people on low incomes and the volume of credit searches. Secondly, it looks at credit scores – do people have sufficiently high credit scores to access credit options with lower interest rates? And thirdly, it looks at the credit environment – what type of credit does the local high street offer? This strand classes bank branches, free cash points and credit unions as positive factors and payday lenders as negative factors.
For further information about this project, please contact Heather Williams-Taplin at heather.williams@demos.co.uk.