Credit Builders Alliance

by Vikki Frank, Executive Director, Credit Builders Alliance

Do you want to report your client’s loan repayment behavior to a credit bureau? Now you can!

CommonGoals is pleased to announce an innovative new partnership with Credit Builders Alliance (CBA). The new CBA Reporter service combined with the TEA Credit Reporting module, gives community lenders – regardless of number of loans – the opportunity to report to the major credit bureau(s).

“Once we started reporting loan repayments, we realized that credit building may be the most cost-effective and efficient asset building tool.”

Robert Boyle, Executive Director and CommonGoals client
Justine Petersen Housing & Reinvestment Corporation and Great Rivers CDFI

Access to financial services nationwide – as well as employment and housing – is increasingly determined by credit history and credit score, as defined by the major credit bureaus. Families with good credit will save approximately $250,000 in interest throughout their working lives than those without -- savings that could go towards building assets. By far the best and quickest way to improve a poor or non-existent credit history — and help low-income, unbanked and underserved families get access to safe, affordable, mainstream lending products — is to show a positive recent payment history on open accounts. However, most of your clients do not borrow from creditors that report to the bureaus. Up until now, that list included you! This has created a catch-22 for you and your clients.

Credit Builders Alliance has a solution. Our innovative non-profit business model was developed in coordination with community lenders and the major credit bureaus. CBA is now a one-stop shop to help community lenders report to the major credit bureaus. CBA launched a reporting partnership with Experian in May 2007! Now community lenders – regardless of portfolio size – can report. Our goal is to offer reporting to three bureaus in 2008 as they understand that accepting community lender data is not only doable, but the right thing to do!

The CBA Reporter provides:

• One time online membership process to quickly and efficiently obtain reporter membership with major credit bureau(s);
• Compatibility with CommonGoals TEA Credit Reporting module which after set-up allows you to report monthly with just the push of a few buttons;
• Support to make the best management decisions regarding technology, portfolio management, credit builder products, and staffing with respect to credit reporting;
• Centralized e-Oscar online dispute processing including our daily monitoring and specialized technical support to help you save staff time;
• Legitimacy - your organization’s name will clearly appear as the creditor building the credit history and scores of your clients.

In addition, CBA can help you:

• Stay up-to-date with current and changing credit bureau policies and credit industry issues;
• Learn about Alternative Credit opportunities – how can bill payment information on a credit report be an opportunity for your clients?;
• Improve your capacity to understand and offer innovative credit building education with our Credit Builder Toolkit funded through the Annie E. Casey Foundation;
• Diversify your loan portfolio – learn what new loan products and services other community lenders are offering their clients to build credit and create financiallly self-sufficient and educated financial service consumers;
• Build stronger credit and a better future for the low-income, unbanked, and underserved families you serve while strengthening your portfolio quality.

Visit our website to learn more about CBA Reporter service and Why Reporting Data can help you and your clients!

About CBA: Credit Builders Alliance was incorporated as a non-profit organization in 2006 to respond to the need and demand of community lenders to report to the national credit bureaus. 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.

CBA does this through three activities:

1. One-Stop Shop for community lenders to provide and receive data critical to their mission through our unique partnerships with major credit bureaus;
   
   
2. Dissemination of tools and best practices for asset-based credit building strategies and products relevant to community financial service providers;
   
   
3. Awareness-raising to open new credit building opportunities for low-income and underserved populations by bringing together the needs, demands and innovations of community and credit industry partners.

Please Join Us!

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