The reading level for this article is All Levels


There are a number of credit building agencies out there; some are credit partners for personal credit building, and others are credit partners for business. Credit Builders Alliance (CBA) is a nonprofit organization that is dedicated to helping low and middle income individuals and families build client credit and financial access in order to grow their personal assets. It can be visited at

The CBA asks its clients to follow a five-step strategy. First, clients are asked to rethink of credit as an asset, not a liability. With proper financial strategy, credit can be built into something that ultimately saves consumers a lot of money on mortgages and loans. Good credit ratings save homeowners an average of $250,000 throughout the course of their lives, and about $50 per month on new car purchases. Good credit also provides a number of opportunities that could not be afforded to consumers with poor credit. They also try to encourage their clients to understand that poor credit, by contrast, is an immense liability that keeps families in a cycle of poverty, and encourage them to invest in the future as a safeguard against potential hard times.

The CBA then helps its clients understand their personal credit score, and breaks down the credit system for them. They explain the difference between the credit score and the credit profile and help their clients come up with a sound strategy to maximize both.

The third step is to take action and get good things going. This is done through helping clients find good, small loans so that they can start building credit by keeping active accounts. This does not take much, as the credit score is not based on the size of the balance, but rather the amount of repayment and the mere fact that there is an open account. Results can be produced very quickly; a diligent client can add 50 to 100 points to his credit score in six months.

One excellent tool for this is a new credit reporting agency called Payment Reports Builds Credit, or PBRC. PBRC is an agency that a client can sign up with and allow access to their otherwise non-credit building trade lines, such as rent, child support and utilities. This gives aid to people who cannot build credit because they don’t have access to a credit card.

The fourth step is to set up a goal and work toward getting out of debt, and the fifth is to come up with strategies that make the removal of debt even more efficient. This includes debt consolidation by negotiating with creditors to allow single, lump-sum payments rather than incremental ones. A relationship with the CBA and a little bit of willpower can help you overcome your battle with debt. They are excellent credit partners.

For business credit builders, plenty of other options exist, however they are much more complex as the business credit system is much more complicated.

This Business article was written by Mark Karavan on 11/22/2009