Experian, a global data and technology company, released an analysis demonstrating the positive impact of Credit Builders Alliance (CBA) tradelines on consumers seeking to improve their credit profiles. The study found that 70% of previously unscored borrowers who had a CBA tradeline achieved prime or near-prime status within one year. This figure significantly surpasses the 48% of unscored U.
S. borrowers generally who reached the same status in the same timeframe.
For consumers starting from deep subprime credit tiers, the presence of a CBA tradeline on their credit report was associated with an average 48-point increase within a single year. Dara Duguay, CEO of Credit Builders Alliance, commented on the findings, stating, “This data reinforces what we’ve long believed: When underserved consumers are given the opportunity to participate in the mainstream credit ecosystem, they rise to the occasion. CBA tradelines are a crucial bridge for helping people who’ve been excluded from the financial mainstream build the credit history they need to achieve lasting stability.”
Credit Builders Alliance (CBA) is a national nonprofit network dedicated to helping low- and moderate-income individuals and families build credit and achieve financial independence. Through its partnerships with Experian and other major credit reporting agencies, CBA facilitates the reporting of loan performance data by nonprofit lenders and community organizations. This network also offers credit-building tools and financial coaching to empower consumers toward their financial goals.
Clients served by CBA member organizations often face greater financial vulnerabilities compared to the general U.
S. population. Their average VantageScore is typically 658, lower than the national average of 724. Additionally, these borrowers exhibit higher credit utilization rates at 75% versus 67% nationally, and greater debt-to-income ratios, averaging 33% compared to 19% for the broader U.
S. population.
The findings underscore the role that nonprofit and mission-driven lenders, including community development financial institutions (CDFIs) and financial capability nonprofits, play in fostering financial opportunity. These organizations combine responsible lending practices with financial coaching and education, aiding consumers in overcoming systemic barriers, building savings, and ultimately gaining access to mainstream credit products. Molly Poppie, Chief Product and Analytics Officer for Experian’s Financial Services and Data Business, highlighted, “This analysis highlights the importance of inclusive credit reporting and shows the positive impact organizations like CBA and their members can play in helping underserved consumers improve their financial lives.” She added Experian’s commitment to “helping bring financial power to all and are proud of our work that helps expand access to credit for those who have historically been left out.”
