To better serve its clients, the African Development Center has become one of the first Community Development Corporations (CDC) in Minnesota to report its microloan portfolio to the major credit bureaus in the country. The credit reporting program grew from a desire to reward responsible clients by documenting their loan payment history and ensuring that they are bankable after completing ADC’s programs. In a world that runs on credit checks and credit scores, an individual’s credit report is an essential component of his or her business and personal identity. The credit report determines trustworthiness and accountability, and is necessary to fully participate and advance in the financial world.
ADC will be submitting monthly credit reports to Experian and Transunion, two of the three largest credit bureaus, through the Credit Builders Alliance (CBA). Credit Builders Alliance was incorporated in 2006 as a non-profit organization to help community lenders report loan repayment data to the major credit bureaus. Those community lenders include CDFIs, microenterprise and housing development organizations, asset-building organizations and community credit unions. The purpose of CBA is to help low and moderate income individuals currently served by non-traditional financial and asset building institutions build their credit and access conventional financing. Since its inception, ADC has evolved immensely and continues to provide training and development opportunities for its clients. The credit reporting program complements the organization’s broader goal to make African business owners more competitive.
ADC Entrepreneurial Business Class – Credit Reporting is one of the topics discussed in the class
