CBA Credit Outcome Challenge
The Challenge
For 4 weeks in April 2010, CBA challenged each of our members to highlight the success of one client who had received credit building support through their activities. Why? With each successful client, we can see how far we have come, share new strategies to help clients, begin to track our collective outcomes, and show that credit building IS asset building.
Challenge Champions
CBA received 10 entries. Each entry was reviewed by a panel of credit building experts with representatives from CBA, CFSI, Justine Petersen, and CFED. Three winners were selected and announced at the CBA Member Breakfast during the 2010 National Microenterprise Conference and Training Institute (a.k.a. AEO conference) on May 12.
The winners are…
First Place ($500 prize): UCEDC
What? UCEDC's Microloan program provides up to $35,000 in capital for minority-owned, women-owned and child care center entrepreneurs.
How? In 2005, UCEDC approved a loan for Robyn to expand her retail pickle business. They also helped her send dispute letters to the three credit bureaus to remove incorrect information. However, it wasn’t until 2007 when UCEDC could report Robyn’s loan to the credit bureaus that they really started to have a positive effect on her credit score.
Wow! Robyn’s credit score jumped 100 points! She was able to access additional capital for her growing business and hire new staff. She was also able to get a car loan with a lower interest rate.
Second Place ($200 prize): Isles Community Enterprises
What? Isles' Springboard Loan provides up to $5,000 to low and moderate income individuals with high cost credit to repay personal debts and build positive credit records for future asset acquisition. Loan recipients are required to participate in the Financial Fitness Program for at least 4 months.
How? Isles assessed Kisha’s* obstacles to homeownership and developed a spending plan and a plan to track expenses for 30 days. She completed Isle’s Financial Fitness Program and received a $5000 loan to pay off debt.
“When I initially evaluated my debt and credit, I knew I would need help if I wanted to buy a house. A friend told me about the Isles program. The counselors were great and really cared about what I was doing. They wanted to see results and I gave them results. When my credit score went over 700, I knew I had really accomplished something.”
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Wow! After diligent budgeting and a loan that let her pay off her old debt and build good credit with two years of on-time payments, Kisha’s credit score jumped more than 100 points! With her improved credit score, she was approved for a mortgage and purchased a home.
* Client’s name has been changed to protect identity
Third Place ($100 Prize): Kentucky Domestic Violence Association
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What? KDVA provides interest-free microloans of $200 - $800 to help survivors of domestic violence start or build their credit history. Loan recipients are IDA savers first. Once they have savings, KDVA will make them a loan up to the amount in their savings account – to cover emergencies or just build credit. KDVA’s statewide Economic Empowerment Project targets survivors of domestic violence whose household incomes fall below 200% of the federal poverty line for the size of their family.
How? Sharon entered the Economic Empowerment Program. They helped her file for bankruptcy and then claim a portion of marital property. She then opened an IDA savings account to pursue a college degree. After a year of savings, she was ready to start building her credit. She received a $300 microloan and KDVA reports her monthly payments to the credit bureaus through CBA.
Wow! KDVA not only helped Sharon to improve her credit score by 150 points – she was also able to secure rental housing, increase her savings, and enroll in college to work towards her Bachelor’s degree!
Learn about Sharon’s leap forward
More Resources
Check out additional resources to help you track your client's outcomes:
Want to learn what a credit outcome looks like? Check out how Debra and Curtis build their credit with the help of justinePETERSEN.
Check out these stories that outline innovative credit building products and show client outcomes.
Credit Builder Client Profile Survey
A tool to help you understand the baseline data about your client’s credit building needs.
Credit Builder 5 Step Action Plans
These worksheets can help you document activities that are helping your client reach his/her credit goals.
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Learn how KDVA not only helped Sharon to improve her credit score by 150 points – she was also able to secure rental housing, increase her savings, and enroll in college to work towards her Bachelor’s degree!
UCEDC's Microloan program helped Robyn to clear charge-offs and reported her loans through CBA. With these strategies on hand, Robyn's score increased - and finally allowed her to access a prime car loan.