Targeting credit builder loans: Insights from a credit builder loan evaluation
Author: CFPB - Consumer Financial Protection Bureau
Topic: Credit & Debt
Publisher: CFPB - Consumer Financial Protection Bureau
Location: United States
Format: Report
Content Type: Research
Publication Date: July 13, 2020

This report presents the results of a Consumer Financial Protection Bureau (CFPB) funded evaluation of a Credit Builder Loan (CBL) product. CBLs are designed for consumers looking to establish a credit score or improve an existing one, while at the same time giving them a chance to build their savings.

The study used random assignment to explore four research questions:

  • How does the CBL affect participants’ likelihood of having a credit score?
  • For participants who already had a credit score, how does the CBL affect their score?
  • How likely are CBL borrowers to make late payments on the CBL and other loans?
  • Does the CBL affect participants’ savings balances?
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