Fintech firm Zilch has released the first findings from its Credit Confidence study, highlighting a clear evolution in how British consumers are using credit amid persistent cost-of-living pressures. The research, conducted with YouGov and based on responses from more than 10,000 UK adults including over 6,600 credit users, shows that many people now treat credit as a deliberate way to maximize value from everyday spending rather than a last-resort option.
Fieldwork took place between 7 and 13 April 2026. The data indicates that two-thirds (67%) of credit users believe rising living costs have led them to rely more on credit for routine purchases.
Yet the majority are doing so with greater intention. More than half (52%) of credit users say they primarily view credit as a financial tool, compared with just 19% who use it out of necessity.
Everyday spending categories feature prominently. Thirty-six percent of credit users apply it to clothing, 33% to weekly grocery shopping, 28% to fuel, and 29% to dining out or takeaways.
Among those using credit for groceries, 44% cite rewards or points as their main motivation, versus 23% who do so out of necessity.
Comparable patterns appear for fuel (47% rewards-driven versus 17% necessity) and dining out (43% versus 14%).
Despite this shift toward more purposeful use, significant barriers remain.
Nearly one-third (32%) of credit users find agreements difficult to understand, while 27% do not know how long it would take to repay balances if only minimum payments are made.
These comprehension challenges are more common among women (36%) than men (28%) and affect 37% of 18- to 34-year-olds.
Although 84% of consumers report feeling confident in managing their credit overall, only 10% say using credit makes them feel empowered and in control. Just 28% believe simple access to borrowing is enough.
Most want additional features that help manage spending, deliver rewards, and build greater financial confidence.
Top desired features for new credit products include low interest rates, cashback, flexible payment options (cited by 32%), membership perks (27%), and retailer discounts (24%).
Zilch has positioned its platform to address these consumer needs.
With nearly six million customers, the company provides a single place to manage spending through flexible payment choices, real-time rewards, and smart tools that simplify decisions and help users stay in control.
Philip Belamant, Zilch Co-Founder and CEO, commented:
“How we use credit has changed. It’s no longer something people use occasionally for big purchases and as a final option, but a tool that millions of people are attempting to use strategically to get more value from their spending.”
They added:
“At Zilch, we’ve built our platform around how people actually spend today. It’s one place to manage your spending, giving you flexible ways to pay and rewards in real-time, with embedded smart tools that simplify decisions and keep you in control.”
The initial research findings shared by Fintech company Zilch underscore growing demand for credit solutions that align with modern spending habits and go beyond basic borrowing access to actively support financial wellbeing.