Credit Archives - AFCPE

Tools & Resource Review: Self Lender

Rachael Deleon — Mon, 06 May 2019 14:34:02 +0000

Before I start, I want to give you a heads up. I am not being compensated to write this blog post. But in full disclosure, I am compensated by Self Lender to write personal finance articles for SelfLender.com so we do work together. Although I’m extremely grateful for the professional relationship I have with Self Lender and other brands, anytime I write, speak or recommend something, I do it because those are my true thoughts and opinions.

Helping people to be better with money is what we do. We change how people think about money and help them take steps to be successful with it. But each person we help is different. They each have their own set of circumstances, beliefs, mistakes, goals and knowledge base. As financial professionals, our job is to match the person with a plan but also the tools they need to accomplish that plan.

The key word there is “tools.” The tools of our trade are an important part of helping our clients reach their financial goals. It’s a great feeling when you connect a person with a tool or resource that works for them, especially one that helps them break the cycle of financial chaos!

One such resource is Self Lender. Self Lender’s mission is to help people build credit. My first introduction to the company was by chance at a financial conference. There I had the opportunity to meet part of the Self Lender team and learn first-hand who they are and how they help. What resonated with me was their passion to help people build or improve their credit. They don’t just talk the talk, they walk the walk

Good credit can not only save you money, but it can also save you heartache and stress. As a financial coach that helps the military, I know that good credit is paramount to Service members. Members of the armed forces who hold a security clearance must maintain good credit or risk losing their security clearance. That’s where I find Self Lender to be a good resource for the population I serve. Here are the details about Self Lender to see if they would be a good fit for the clients you serve.

How it Works
Self Lender helps clients build credit by first having them apply for a credit builder account, which is a CD_secured installment loan. The funds from the customer’s loan are then put into a CD in the customer’s name. Once that’s done, the client repays the loan based on a repayment plan that fits into their budget. Each time a payment is made, the payment is reported to the three credit bureaus. With each on-time payment, the client is building or rebuilding their credit.

Self Lender’s credit builder loans do not require you to make a deposit up front but your client will need to be able to afford the payment. There is an administration fee and variable payment options; it’s best to check their website for the most current figures. The APR on the loan is 16% or lower.

With anything and money, the resources you use will depend on the person and their situation. Here are some of the pros and cons of Self Lender to help you better understand the resource.

Pros

The CD is FDIC insured by one of Self Lender’s bank partners: Sunrise Banks, N.A., Atlantic Capital Bank, N.A., Lead Bank
A better alternative for those who have a problem overusing credit cards
Builds and improves credit with on-time payments
No deposit required up front
The activation fee is one time per account opening
For some people, the account is just as useful as a form of savings since the loan proceeds aren’t accessible until the account is closed
Available online and by smartphone app in all 50 states (great for the military community and others who find themselves moving somewhat frequently)
Early closure of an account costs less than $5, variable with account size
Access to free credit monitoring and Vantage Score during repayment period

Cons

High-interest rate payment (but way lower than most secured credit cards)
Late payments are reported to the credit bureaus (you can’t have it both ways)

Applications
Self Lender is great for anyone who wants to avoid using credit cards and build or rebuild their credit. It’s also good for people who want to build up emergency savings while building their credit.

Credit plays an important part in our lives whether we want it to or not, so it’s important to have good credit to save money and stress. Self Lender is a resource you could possibly recommend to help clients build or repair their credit.

Guest Contributor: Lacey Langford, AFC^®

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Bridging the Gap through Credit Building

Rachael Deleon — Mon, 06 Nov 2017 17:00:49 +0000

A good credit history is crucial in today’s economy. Far more than just a number, a good credit score is a prerequisite for everyday financial services like a low-cost credit card, a bank account or car loan. A good credit history can make the difference in accessing the affordable lending products necessary to go to college, buy a home, or start and grow a small business. Renting an apartment, paying for car insurance, signing up for utilities and even landing a job can also be affected by a person’s credit history – or the absence of one. Yet, 26 million Americans are “credit invisible,” meaning that they do not have any credit history with the three main credit reporting bureaus.

For many low-income individuals with no or “thin credit files,” the ability to establish a good credit history is hindered by lack of access to affordable mainstream credit building financial products. Individuals with poor or thin credit often rely on payday loans to meet their credit needs. The high-cost of these loans, combined with the fact that on-time payments are not reported to the credit bureaus, prevent people from building credit and other assets, often across generations. Without a strong credit history, it is difficult, if not impossible, for households to get and stay ahead.

Credit building is a powerful tool that helps individuals and small businesses take control of their financial lives and supports asset-building goals, such as homeownership, small-business ownership and the pursuit of higher education. Credit building is defined as the act of making on-time monthly payments on a financial product such as an installment loan or a credit card that is reported by the creditor to the major credit bureaus. Credit Builders Alliance (CBA) believes that responsible credit building pairs reporting payments to the credit bureaus with relevant and timely credit education; opening and successfully managing financial products is key to building and maintaining a good credit history.

A good credit history is not only an asset; it is the means to greater and more sustainable financial stability, savings and asset building opportunities. Over the last ten years, nonprofit and community-based organizations, financial capability practitioners, and even local governments have begun to embrace credit building as integral to helping low- and moderate-income and other underserved constituents build and sustain financial assets. This progress has been accomplished be innovating new credit building products, expanding access to responsible credit building products through relationships with financial institutions, and raising the profile and need for innovative solutions such as alternatives to payday lending and Rent Reporting. Financial coaches and counselors can continue to leverage their resources to support responsible credit building programs and policies that combine access to safe, affordable financial products with skilled and relevant financial education. In this way, they create ideal conditions for individuals and families to build credit and assets.

Credit Builders Alliance (CBA) is a nonprofit organization creating innovative solutions to help non-traditional financial and asset building institutions, serving low and moderate-income individuals, build client credit and financial access to grow their businesses and/or personal assets.

[i] CFPB Office of Research (2015) “Data Point: Credit-invisibles,” retrieved from http://files.consumerfinance.gov/f/201505_cfpb_data-point-credit-invisibles.pdf.

Guest Contributors: Carmina Lass and Alesha Klein, Credit Builders Alliance

Stop by CBA’s exhibit booth at the 2017 AFCPE Symposium to learn more about how they can help you move people from poverty to prosperity through credit builiding

November 06, 2017

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Poor Credit History? There Are Ways to Recover

Rachael Deleon — Wed, 08 Feb 2017 15:31:42 +0000

In an ideal world, everyone could afford to pay cash for all items. Until that day arrives, establishing and maintaining good credit is important, because often we need credit to purchase high-priced items such as houses, cars and furniture.

Maybe you had some tough times in the past and now you’re paying the price for a poor credit history. The good news is that there are things you can do to rebuild your credit, even if you can’t get a loan or conventional credit card.

How a credit score works

Credit scores are three-digit numbers, typically ranging from 300 to 850, that creditors use to rate your creditworthiness. Scores are based on how responsibly you’ve paid off loans in the past. The higher your score, the more likely you will obtain a loan with good terms, because you’ve proven there’s less risk that you will default.

There are three major credit scoring bureaus: Equifax, TransUnion and Experian. Each agency uses different algorithms to calculate credit scores, so each bureau’s score may differ.

How to repair your credit

One good option is to get a secured credit card, which requires that you make a refundable deposit into an account as collateral. Usually your credit limit will be identical to how much you deposited. Although this is not ideal, it does allow you to open a credit account despite a poor credit history and, more importantly, rebuild your credit.

Ideally you would pay the full balance off each month, even though it’s not required. You must do two things if you want to rebuild your credit: Remit the required payment on time each month and maintain a balance of no more than 30% of your credit limit. This balance-to- limit ratio is known as the utilization rate.

To illustrate the utilization rate, let’s say you have a secured credit card with a limit of $1,000, because you have deposited $1,000 into the account. To keep the utilization rate below 30%, your balance should not exceed $300.

As you repeatedly pay the bill on time and keep your utilization rate under 30%, your credit rating should increase. Many lenders will report your account activity to the credit bureaus, which can increase your credit score. Before you apply for a secured card, check if the issuer reports to the bureaus.

The effects of bad credit

Not only can a subpar credit score affect your ability to get mortgages and car loans, or get good terms on those loans, it can also affect other areas of your life:

Insurance: Insurance companies routinely check credit reports in order to determine premiums for home and auto insurance. These premiums may be higher because of your payment history.

Employment: Many employers perform a credit check as part of the hiring process. It’s a controversial practice, but advocates say these credit checks are an important indicator of maturity, discipline and trustworthiness.

Housing: A low score can influence a landlord’s decision during the application process. Your credit report shows your monthly debts, and landlords review the report to see whether you could afford to pay rent. A bad credit score may not automatically exclude you from becoming a tenant, but delinquencies or accounts in collections may influence the decision. And if you owe money to another landlord, your chances of leasing the property are slim.

The road back to good credit may seem long, and you certainly won’t complete it overnight, but by taking some solid steps you will begin to find your way.

Guest Contributor: Roslyn Lash, AFC^®, is a financial educator and coach at Youth Smart Financial Education Services.

February 08, 2017

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How Financial Counseling Professionals Can Help Millennials Save for Retirement

Rachael Deleon — Fri, 27 Jan 2017 15:33:06 +0000

Saving for retirement has always been a challenge, but it’s harder than ever for many Americans today. One in three people have no retirement savings at all, and more than half of all adults have saved $10,000 or less.

When it comes to millennials, however, the news is more mixed. According to the same GoBankingRates survey,42 percent of millennials have no retirement savings. Yet those who do save are socking away a higher share of their income – about 7.5 percent compared to just 5.8 percent in 2013. Still, many millennials simply aren’t building the savings they’ll need in their later years.

AFC^® professionals are uniquely positioned to help change that trend, and it begins by educating young clients on several key points they’ll need to understand in order to save successfully.

The Value of Time

One of the greatest assets for millennials is also one of the greatest challenges: time. The ability to start small and build savings over several decades is tremendously advantageous, but many young people find it difficult to save as much as they should when they know they likely won’t be retiring for many years. Reframing this problem is one of the most important tasks a financial counselor can accomplish. Rather than being seen as a convenient excuse to put off retirement planning, young people should be guided toward the view that time is just as valuable as money when it comes to saving.

Planning for Success

Many millennials begin saving by simply stashing money haphazardly in the hope that it will someday pay off. While saving is never a bad thing in any form, young clients should always be encouraged to develop a set plan and to stick to it as closely as possible. Of course, this begins by setting realistic goals for both the client’s retirement age and the total savings they’ll need to make it happen. Whenever possible, young people should begin with their savings goals and create a budget to fit rather than the opposite.

The Many Paths to a Successful Retirement

One of the most appealing and least understood aspects of retirement planning is that it can be done in any number of different ways. Though millennials who have access to employer-sponsored retirement funds often take advantage of them, far fewer young people utilize options such as Roth IRAs, ETFs and mutual funds.

Even fewer understand the value of a health savings account, which can often make the difference between a minor inconvenience and a complete financial disaster in the event of a major medical issue. Millennials who are aware of the savings options available to them, and of the advantages and drawbacks inherent to each, tend to be far better prepared than those who don’t.

Mastering Credit and Debt

Both credit and debt have become dirty words in recent years, but millennials shouldn’t be afraid of them. They should, however, understand how to utilize them correctly. Using a credit card for routine purchases or taking out the occasional small loan can be a great way to build credit, but many young people fail to recognize the risk that larger debts pose to their ability to save for retirement. Ever-increasing student loan debt already pushes back saving for many millennials, but high-interest debts like multiple credit cards can make it nearly impossible to put aside adequate savings each month. Many people are also unaware of the assortment of federal programs that can aid in managing, reducing or even eliminating student loan debts, making this a key area to explore for those whose income is being burned away on interest and other fees.

Though surveys have shown that most millennials are optimistic about their eventual retirement, reality doesn’t always justify such a rosy outlook. Millennials simply aren’t saving enough as a group, but there’s still time for that to change. Even modest savings, if started early enough, can grow to eventually form the basis of a comfortable retirement. For that reason, the ability of skilled financial counseling professionals to guide young clients toward an effective, sustainable retirement plan is perhaps more important now than ever.

Guest Contributor: Maricel Tabalba

Maricel Tabalba is a freelance contributor for Credit.com who is interested in writing about personal finance advice for Millennials and college students. She earned her Bachelor of Arts in English with a minor in Communication from the University of Illinois at Chicago.

January 27, 2017

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A Thorough Conversation: “Should I get a credit card?”

Rachael Deleon — Thu, 09 Jun 2016 15:43:49 +0000

It’s a question our younger clients ask regularly, and it’s one I have received recently from my children. The quick and easy answer might be, “Yes, of course you must obtain a credit card to build your credit!”. And, while establishing credit is a chapter firmly entrenched in the book of surviving consumerism, financial counselors and other professionals who provide financial education, must delineate the risks, as well as the rewards, of starting down the plastic-paved road. Our failure to help our clients illuminate the hazards of abusing debt could impair their ability to successfully achieve their financial goals. Worse yet, poor credit management may ultimately lead to dire life challenges, including insufficient food on the table or the inability to pay for a critical car repair.

With such potentially adverse outcomes on the line, a thorough exploration and analysis are necessary to determine the rewards and risks associated with obtaining a credit account.

Conducting a thorough conversation

This type of dialogue between counselor and client is similar to a risk tolerance questionnaire, which attempts to determine an investor’s stomach for gyrations of “the market.” Likewise, when we are asked if establishing credit is appropriate for a client, we must help the individual see that the temptation to spend without the ability to repay—the risky side of credit—may jeopardize the client’s plan or even their financial health. To do this, we may provide examples, real or hypothetical, about the caustic effects that debt payments have upon cash flow, net worth and the ability to obtain wants or needs. An easy yet powerful dialogue with a client might go as follows:

Imagine that you have received a credit card with a reasonable credit limit. Although you intend to pay the card off in full, an unplanned expense soon occurs and you cannot repay the entire balance. A series of such unfortunate circumstances, or unbudgeted events like the holidays, eventually leads to a maxed-out card. This is temporarily alleviated when the credit union/bank raises the credit limit. However, the credit card balance gradually grows. As time progresses, additional credit is repeatedly offered by the current and then by new creditors, resulting in ominous minimum payments and a possible debt spiral.

Here’s how this scenario might look on a dry erase board or on paper:

Perhaps this looks like a simplistic lesson, but we cannot assume—in the best interest of our clients—that the most basic principles are firmly engrained in the people we help. On the contrary, there can never be too much understanding of the forces that [may] erode our clients’ financial dreams.

Exploring the decision to obtain credit doesn’t have to employ scare tactics. Instead, we can review strategies that clients may use to reduce the likelihood of credit abuse while simultaneously enjoying the benefits of establishing credit. Such techniques include maintaining lower credit limits, using a secured credit card, and creating an ample emergency cash reserve to prevent credit use out of necessity.

Some clients prefer avoiding credit altogether

Part of our credit discussion may also focus on a financial life without obtaining credit, since some consumers wish to avoid getting or using credit altogether. The widespread use of credit scores today requires a strategic, thoughtful approach to shunning credit, and financial educators should be prepared to help these clients face the challenges of such a decision. After all, if their goal is to achieve financial success/independence while circumventing the credit arena, we should provide the appropriate guidance they need.

Credit scores are ubiquitous and arguably the most oft-discussed topic among the many facets of personal finance. In fact, striving for impeccable credit can be downright competitive, as people frequently compare their scores or even credit limits to those of their acquaintances. In other words, establishing credit and developing credit scores is a serious business. Considering the challenges and pitfalls associated with building credit, when our clients ask, “Should I get a credit card?” we should avoid the quick answer and conduct a thorough conversation.

How do you respond when clients ask if they should obtain a credit card?

When a client wishes to avoid establishing credit, what recommendations do you give him/her?

Guest Contributor: Dave Kershberg, AFC^®

June 09, 2016

Should I get a credit card?

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Money, Debt & the Law 102: A Look at the National Landscape

Rachael Deleon — Tue, 22 Sep 2015 18:27:54 +0000

The Consumer Financial Protection Bureau, or CFPB, recently issued it’s Monthly Complaint Report for August 2015.

The CFPB is the first federal agency that is totally focused on consumer financial protection. Consumer complaints are an integral and increasingly significant part of that work. Over the past 4 years, the agency has phased in an expanding program for handling complaints, beginning with credit card and mortgage complaints in 2011; bank services, student loans, consumer loans and credit reporting in 2012; money transfers, debt collection, and payday loans in 2013, and prepaid cards, credit repair, debt settlement, pawn and title loans, and virtual currency in 2014.

In July of this year, the agency started issuing monthly reports about the complaints. Now let’s take a look at the agency’s second and most recent monthly report, issued in August.

The report analyzes recent complaints from 3 different perspectives: by product, by state, and by company. It also includes sections that spotlight a particular product, and a specific geographic area.

Today, we’ll zoom in on what has been happening with complaint volume by product.

In July of this year, the agency fielded over 26,000 complaints across these 9 categories of products: consumer loans, credit reporting, money transfers, credit cards, student loans, payday loans, mortgages, debt collection and bank services.

The agency compared the volume increase in each category over last year for May-July of each year and found the biggest increase in complaints in consumer loans (61% increase), credit reporting (45% increase), money transfers (28% increase), and credit cards (24% increase). Increases in each of the other categories was below 15%. And in the case of debt collection and bank services actually fell by a small percentage.

Despite the slight drop in debt collection complaints compared to last year, this product, debt collection complaints are still one of the three leading categories of complaint overall, with over 171,000 complaints since the agency started keeping stats, out of a total of 670,000 plus complaints overall.

Mortgage complaints, at 187,916 total, and credit reporting complaints, at 105,477 are first and third in volume of complaints.

Together, these top three categories of complaints represent about 73% of complaints submitted in July 2015.

Here’s how some individual states rank in terms of volume of complaints: Hawaii, Maine, and Georgia experienced the greatest volume percentage increase over the year; South Dakota, New Mexico, and Arkansas experienced the greatest volume percentage decrease. Of the most populous states, New York experienced the greatest percentage volume increase (29%).

Of the ten most complained about companies, Equifax, Experian, and Bank of America were the top 3.

On Tuesday, September 29, in a live webinar, we’ll take a more in depth look at what these statistics mean, and their importance to AFPCE members and certified professionals.

Guest Contributor: Marcy Einhorn, Esq.

September 22, 2015

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Money Pools: A Non-Traditional Savings and Capital System

Rachael Deleon — Thu, 02 Jul 2015 18:51:40 +0000

As financial counselors, coaches and educators, it is important to recognize and understand various systems of saving and investing that culturally diverse populations and the underbanked might use. The use of money pools might not be the first choice that a financial professional might recommend to a client, but if a client is already using this system as a means of saving and investing, the financial professional can try to understand why the client prefers this method over traditional banking.

What is a Money Pool?

In some Latin American circles, it is called “tanda” or “cundina,” which means “taking a turn” or “doing a circle.” A mainstream term is the Money Pool, but the Latin American communities are not the only groups that use this system of investing and saving money. This type of payment system is also used by individuals in various ethnic communities including Chinese, Korean, West African, and Jamaicans (Gaynor, 2009). The practice can be seen in ethnic communities from Madagascar, Taiwan, Peru, Mexico, and Pakistan (Haden, 2013).

Regardless of the various names it can go by, immigrant and ethnically diverse groups of individuals often see it as a reliable means of saving and investing their money to meet needs. A Cronkite News article interviewed a man who described money pools as “a loan for the people who have the first few turns, and…a savings account for those who have the final turns. “It’s a very nice idea, as long as the group is made of trustworthy people.

How A Money Pool Works

According to Investopedia, the term money pool means “the funds from many individual investor that are aggregated for the purposes of investment, as in the case of a mutual or pension fund.” The concept of this smaller money pool is that there is a regular collection of a designated amount of money by a group of people that goes into a common fund. The members of the group take turns receiving the lump sum. The most common example of a typical money pool would involve about 10 individuals that all contribute $100 into the pool per month and take turns collecting the $1000 investment each, over a 10 month period of time (Haden, 2013; PopTech, 2014; Gaynor, 2009).

Typically the organizer of the money pool is the first to receive the first pool payment and the least-known individuals get the last payments because the system is built on social relationships and trust/confidence in those participating (Haden, 2014). There are certain groups of people that purposely select to get the money in later phases because they use the system as a means of saving, as the model has a built-in discipline to saving. This investing system utilizes social/peer pressure for conformity to the rule of the system and provides an incentive to be faithful with payments because failure to do so can result in injury to all investors and public exile from the community as a whole (Haden, 2013).

Who Uses Money Pools?

Individuals use this system of investing and saving for several reasons:

They have poor access or lack the resources to utilize the services offered by traditional banking and financial institutions, so they fall back on a community system that is based on social relationships, reciprocity and trust (Haden, 2013).
They do not have significant credit issues or a lack of credit and financial histories. Under these circumstances, their ability to use traditional banking services is impacted (Haden, 2013).
They do not trust traditional banking institutions and prefer to borrow money from within the community or from friends and family (Haden, 2013).

When a client is using this system, it is important to find out if the money pool is linked to credit and payment history so this can assist the client in building traditional credit history and that they understand how this history can help them if they choose to transition to “mainstream” institutions.

Following the banking collapse and ongoing recession in 2009, money was tight and banking institutions were hesitant about lending money to anyone. Therefore, money pools increased within communities and were even beginning to be recognized as a means to build credit histories (Gaynor, 2009).

Money Pool Organizations

The Mission Asset Fund, a non-profit in the San Francisco area, worked with individuals with lower income with the mission of developing programs and skills to increase personal financial success. They realized that the money pools served as a form of disciplined and patient commitment to saving and could be positively linked with payment and credit building behavior. The program they developed helped increase the average credit score of participants by 52 points over a four-month period (Gaynor, 2009).

eMoneyPool.com is a digital, on-line tool that helps people to create their own private money pools among friends (nation-wide) with a 1-5% surcharge of the total pool amount for administration fees and to guarantee payment if another member defaults. Interested consumers can also participate in open pools developed by other eMoneyPool members. eMoneyPool.com aims to create a service that aids the underbanked by using a tool that is comfortable and familiar to them by linking their business to formal financial institutions that can monitor and establish credit history (PopTech;2014). Clients that use eMoneyPool can grant permission to share the payment history and credit rating collected through eMoneyPool and then share it with credit-rating agencies and direct lending institutions (PopTech, 2014). This allows the underbanked to develop a payment history and credit rating that can assist them in more traditional financial services like personal loans, car loans, mortgages, etc.

Professionals can still assist clients using money pools in planning and maintaining their financial goals and link the positive financial behaviors (patience, consistent payments, etc.) with more traditional services if the client is interested in bridging to more “mainstream” institutions and services.

References:

Haden, P. (2013, September 13). In Latino community, money pools a different approach to lending. Cronkite News.(http://cronkitenewsonline.com/2013/09/popular-in-latino-community-money-pools-a-community-approach-to-lending-saving/)
Gaynor, Time. (2009, July, 2). U.S. migrant money pools thrive in recession. Reuters. (http://www.reuters.com/article/2009/07/02/us-usa-savingsclubs-idUSTRE5613J420090702)
eMoneyPool is an online website and financial program that provides financial services that promote sharing community where members borrow and save together (http://www.eMoneyPool.com).
Money pool: a centuries-old savings tool reinvents. (2014, January, 22). PopTech. (http://poptech.org/e5_francisco_cervera)
Money pools: a centuries-old savings tool reinvented. (2014, February, 21). Christian Science Monitor. (http://www.csmonitor.com/World/Making-a-difference/Change-Agent/2014/0221/Money-pools-a-centuries-old-savings-tool-reinvented)

Guest Contributor: Suzanne R. Frie, AFC^®

July 02, 2015

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Credit Building: A Powerful Strategy for Financial Practitioners

Rachael Deleon — Tue, 20 Jan 2015 19:06:08 +0000

A good credit history is crucial in today’s economy. Far more than just a number, a good credit score can make the difference in being able to access the affordable lending products necessary to go to college, buy a home, or start and grow a small business. Renting an apartment, paying for car insurance, signing up for utilities and even landing a job can also be affected by a person’s credit history – or the absence of one.

Unfortunately, for many of the 64 million Americans with no or “thin” credit files, the ability to establish a good credit history is hampered by lack of access to affordable mainstream credit building financial products. A disproportionately large number of these individuals are low-income and many live in areas underserved by traditional financial institutions. They depend on predatory financial service providers who do not report their borrowers’ on-time payments. Thus, many of these low-income households find themselves trapped in a vicious credit cycle: the use of predatory financial products prevents them from building good credit and their impaired or nonexistent credit furthers ongoing dependence on asset stripping alternative financial products.

As credit reports and scores are used more widely by creditors, employers and other businesses, financial practitioners are recognizing the connection between consumers’ credit profiles and the opportunities available to them. Over the last five years many have begun to embrace credit building as integral to helping low- and moderate-income and other underserved constituents build and sustain financial assets.

Responsible credit building – which combines access to safe, affordable financial products with skilled and relevant financial education — is a powerful strategy for financial practitioners to help the households they serve take control of their financial lives. In just six months, on-time payments reported to the credit bureaus on an installment loan as small as $100 can help an individual with a low credit score increase his or her score by an average of 35 points and move an individual with no credit score to a prime credit score.

A good credit history is not only an asset, it is the means to greater and more sustainable financial stability, savings and asset building opportunities.

Join Credit Builders Alliance (CBA) and AFCPE^® for a 3-part webinar series designed to help financial practitioners enhance their understanding of credit building as an asset building strategy and help create ideal conditions for individuals and families to build credit and assets. Begins February 2015: http://bit.ly/1BsDWkL

Guest Contributor Dara Duguay, Executive Director, Credit Builders Alliance

January 20, 2015

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