Neobank Monzo has announced a partnership with non-profit Fair4All Finance aimed at widening access to affordable credit as increasing numbers of British people face barriers to borrowing.

Together, the pair are releasing an updated version of Flex Build, a credit card aimed at those with a low or limited credit score that was originally launched in 2024.

The updated card offers a credit limit of up to £250, backed by a one-time deposit. This can be doubled over time with regular on-time payments, with 0 per cent interest if customers pay in full at the end of the month, or 39 per cent APR otherwise.

Each transaction is repaid over a fixed term of one to 24 months, acting more similarly to a loan than a flexible credit product like a credit card. Monzo said that this helps to prevent persistent debt while offering the flexibility of an ongoing credit line.

The card also offers features designed to help customers who may not be used to credit products, including a seven-day grace period for customers to catch up on repayments without impacting their credit score and education built into the app experience.

Monzo said that this card provides a “vital entry point” for customers who may otherwise be pushed into borrowing from friends and family, overdrafts or unregulated lenders.

Monzo is Fair4All Finance’s first partner for its Small Sum Lending Pilot, which aims to bring more small sum credit products to the market as part of the Government’s Financial Inclusion Strategy.

Luke Enock, general manager of borrowing at Monzo, said: “Our mission is to make money work for everyone, which means breaking down the barriers to financial progress. Too many people can’t access affordable credit, leaving them unable to manage essential costs or build the repayment history needed for future borrowing.

“With Flex Build, we’re introducing a new kind of credit product that helps people build a credit history and progress to mainstream options over time.”

He added that by partnering with Fair4All Finance the bank was reaching thousands more excluded customers and taking a vital step towards a more inclusive credit system in the UK.

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