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Credit Builders Alliance (CBA)

Credit Builders Alliance (CBA). Asset Building Conference September 2006 Vikki Frank, Acting Executive Director. Credit Builders Alliance.

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Credit Builders Alliance (CBA)

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  1. Credit Builders Alliance (CBA) Asset Building Conference September 2006 Vikki Frank, Acting Executive Director

  2. Credit Builders Alliance CBA’s purpose is to help low and moderate income individuals currently served by non-traditional financial and asset building institutions to build their credit and access conventional financing in order to grow their businesses and/or personal assets.

  3. Credit Builders Alliance Opportunity: Improved credit scores give low-income borrowers: • better access to mainstream financing • more competitive interest rates • safer products • less vulnerability to predatory lenders

  4. Credit Builders Alliance Challenge: Very few nonprofit and other non-traditional small lenders are furnishing financial education and loan data to credit bureaus. There is strong evidence that a majority of the 1,000 nonprofit lenders in the US have a keen interest in reporting credit history information on their clients.

  5. Credit Builders Alliance Why are lenders not reporting? • Credit bureau barriers for lenders with small loan portfolios. According to a recent survey of 115 micro lenders, only 17% are able to furnish repayment data to a major credit bureau • Non-transparent and confusing credit bureau rules. • Small lenders need more cost-effective options.

  6. Credit Builders Alliance CBA was created by a coalition of non-profit organizations. • Central Vermont Community Action Council • Association for Enterprise Opportunity (AEO) • RUPRI Center for Rural Entrepreneurship • Center for Financial Services Innovation

  7. Credit Builders Alliance CBA has a diverse active board representing: • ACCION • Association for Enterprise Opportunity (AEO) • Center for Financial Services Innovation • Central Vermont Community Action Council • Circle Lending • Community Capital of Vermont • World Relief – Nashville • New Mexico Assets Consortium

  8. Credit Builders Alliance CBA is creating diverse partnerships to serve the asset building field. • Major Credit Bureaus: Experian, Equifax and TransUnion • Expansion/Alternative Credit Bureaus: Fair Isaac, PayRentBuildCredit • Federal Reserve Banks • Non-Profit Associations: AEO, Opportunity Finance Network, CFED

  9. Credit Builders Alliance CBA will help asset building organizations furnish data and improve client credit CBA is a non-profit intermediary organization that is breaking down the barriers for small lenders and asset building organization to furnish data to credit bureaus CBA will streamline relationships between the three credit bureaus and nonprofits as well as find new opportunities for nonprofits to improve the credit scores and credit building opportunities for their clients.

  10. Credit Builders Alliance Small Lender Pilot Project • Dialogue with credit bureaus to create reporting opportunity for small lenders • Identifying Metro2 software for small lenders • Working with 12 micro-lenders • Developing Technical Assistance handbook

  11. Credit Builders Alliance Metro 2 Software CBA Preferred Providers • Common Goals – The Executive Assistant • CreditTime 2000 • Down HomeSolutions and your loan management system?

  12. Credit Builders Alliance CBA will offer its members: • One-stop shop for credit reports • Education and awareness raising • Technical assistance • Access to credit bureaus • Credit Bureau Furnisher Agreement • Data and Report aggregation

  13. Credit Builders Alliance We recognize that alternative community based lender decisions will be based on CBA’s terms and products • Cost • Reliability • Security • Confidentiality • Technology • Ease of operations • Technical support

  14. Credit Builders Alliance CBA will help credit bureaus and asset building organizations define and collect new data predictive of risk. • Financial education participation • Setting and reaching financial goals • Savings behavior • And more…

  15. Credit Builders Alliance Vikki Frank Acting Executive Director vikki@creditbuildersalliance.org 202-368-0500

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