Credit Builders Alliance (CBA).ppt

Credit Builders Alliance (CBA) Asset Building Conference September 2006 Vikki Frank, Acting Executive Director 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. 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 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. 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. 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 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 Credit Builders Alliance CBA is creating diverse partnerships to serve the asset building field. Major Credit Bureaus: Experian, Equifax an