Asset Building Through Credit Pilot

Presenting lessons learned from using a secured card as a credit-building tool
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This report summarizes the methodology, early data results, and lessons learned from the Asset Building through Credit Pilot Program. The program is designed to assess whether a secured credit card teamed with financial coaching can create positive credit-building behaviors and be a useful tool for assisting clients to progress toward their business development goals. The program was launched in 2011 and by the end of the first phase it had delivered 148 secured credit cards. The report recapitulates the effects of the use of these cards on clients’ credit scores and discusses them under the following sections:

  • Description of the Asset Building through Credit Pilot programs with a focus on its structure and partners;
  • Key findings from data collection effort with a focus on client demographics, household size and incomes, application volume, credit score changes of clients, and startup costs and expenses;
  • Lessons learned from the pilot program that can be used by pilot program coaches, organizational leaders considering to offer similar programs, and financial institution willing to partner with organizations offering them;
  • Concluding thoughts and insights into credit building.

About this Publication

By Klien, J., Gomez, L. , Edgcomb, E.