Credit%20Builders%20Alliance%20(CBA)

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Credit Builders Alliance (CBA)

• Asset Building Conference
• September 2006
• Vikki Frank, Acting Executive Director

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Credit Builders Alliance

• CBAs 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.

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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

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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.

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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.

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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

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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

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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

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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.

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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

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Credit Builders Alliance

• Metro 2 Software
• CBA Preferred Providers
• Common Goals The Executive Assistant
• CreditTime 2000
• Down Home Solutions
• and your loan management system?

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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

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Credit Builders Alliance

• We recognize that alternative community based
  lender decisions will be based on CBAs terms and
  products
• Cost
• Reliability
• Security
• Confidentiality
• Technology
• Ease of operations
• Technical support

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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

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Credit Builders Alliance

• Vikki Frank
• Acting Executive Director
• vikki_at_creditbuildersalliance.org
• 202-368-0500