The Credit Story
Low or no credit score is a serious barrier to a person’s financial success. There is a high cost of a low score including increased fees, deposits, higher interest charges and more. Together that cost takes a debilitating bite out of a household’s monthly cash flow and can make it virtually impossible to make ends meet or build savings.
A good credit history and credit score, on the other hand, can pave the way to better jobs, lower interest rates, and asset building. That’s why LISC Income & Wealth Building partners like those within our Financial Opportunity Center® (FOC) network support clients to help them reduce debt and build positive payment histories to grow a healthy credit rating.
Credit as an Asset
LISC believes that FOC services are enhanced when participants are connected to safe and affordable credit and savings products. By understanding a community member’s goals, their current credit situation, and their cash flow, coaches support a participants as they begin credit-building activities. The process is tailored to each person’s unique circumstances. Participating community members may be at different stages in their financial health journey—some starting to build credit for the first time, while others are in the process of rebuilding their credit history.
A key LISC strategy is to create a supportive local network of banking partners, credit unions, and Financial Opportunity Center® partners. By developing relationships with banking institutions, LISC and our partners can inform products features and create a strong and trusted referral pathway for our community members to safe and affordable financial products. In some markets, banking partners offer LISC Twin Accounts™ which is a twelve-month credit building and match savings product proven to build credit and savings.