CDFIs and community lenders around the country are introducing credit builder loans aimed at strengthening their client’s credit histories and scores.
What is a credit builder loan?
Credit builder loans are generally small loans that serve as a:
• step loan to build a credit relationship with the community lender
• reportable line of credit to a credit bureau
• loan that replaces asset-stripping debt (i.e. payday loans) with asset building credit
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The Mission Asset Fund's Cestas Populares (roughly translates to “people’s basket” from Spanish) is a program that formalizes peer lending circles to help