Paper

Client Gains in Credit Scores and Financial Capability

Evaluating the use of secured credit cards as a tool for improving credit accessibility
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This report highlights the impact of the ‘Asset Building through Credit Pilot’ program on 385 secured cardholders. The program was designed to assess whether a secured credit card teamed with financial coaching could create positive credit-building behaviors and be a useful tool for assisting clients to progress toward their business development goals. 
 
The report summarizes an evaluation of client outcomes from the pilot in terms of financial behavior and credit scores, use of microenterprise services, and business formation. The data of the report demonstrate the value that a secured credit card can present for many aspiring entrepreneurs, and the changes they experienced. The report also offers practical lessons for practitioners, funders, and others seeking to influence financial capability. It covers the followings sections in detail:
  • Background of the ‘Asset building through Credit Pilot’ program;
  • Summary of the methodology used for the research;
  • Profiles of the cardholders served at intake;
  • Statistics on the cardholders after 12 months of card use including data on secured card cancellations, changes to credit scores, performance and payment behavior on secured card, progress toward business goals, and financial profile of participants;
  • Key findings.

About this Publication

By Gomez, L.I. & Alisultanov, I.
Published