S

Eric WuAccount Manager

Credit Builder Program

The Hilltop Microfinance Initiative

Paige HannahLoan Officer

HMFI: Who Are We?

• 501(c)(3) Nonprofit• Georgetown University• DC, Maryland, Virginia• 3 services– Small Business Loan– Business Consulting– Credit Builder Program

HMFI as a Stepping Stool

Access to traditional financial institutions

Underbanked segment of society

Small Business Loan & Business Consulting

???Credit Builder Program

What is Credit?

• 300 – 850• “Creditworthiness”

Building a Bridge

• Holistic approach

• Securing funding

The Loan• Two loans• Three tradelines• Improve credit score 50-100 points• “No score” will improve to 600

The Loan: Part 1

• $480 loan, no interest• $40/month payments over one year• Credit reported through the Intersect Fund

The Loan: Part 2

• Apply for a Capital One Secured MasterCard credit card

• $29 annual fee• $200 security deposit

The Loan: Part 2

• $65.95/month payments over 8 months– 10% interest rate

• Pay one small monthly bill $50-$150

• Credit reported through Capital One

Total Cost to Client

Fee Cost

Capital One secured credit card annual fee

$29.00

Capital One secured credit card security deposit

$200.00

Loan interest payment $7.57

Total Cost $236.57

Financial Literacy

Understand credit and types of debt

How to read your credit report

How to issue a credit dispute

How to improve your credit score

Short and long-term goals

And much more!

Credit-Reporting Capabilities

• Intersect Fund makes first loan installment possible

• Lender’s License for reporting in DC and Maryland

• Red tape & DC bureaucracy

• Capital One Secured Mastercard

Looking Ahead• Credit Tune-Up• Future of the Credit Builder Loan

Works Cited• http://www.wikihow.com/Improve-Your-Credit-Score• http://www.lowes.com/pd_225449-287-S243-6_0__?productId=3380042• http://commons.wikimedia.org/wiki/File:Credit-score-chart.svg• http://ieas.berkeley.edu/cjs/visiting_scholars_additional_information.html• http://www.eventbrite.com/o/the-intersect-fund-1512111200• http://www.sociallendingwatch.com/wp-content/uploads/2012/06/money_lending.jpg• http://commons.wikimedia.org/wiki/File:Octicons-mortar-board.svg• https://www.capitalone.com/• http://www.washingtonpost.com/wp-dyn/content/gallery/2010/01/14/GA2010011403123.html• http://www.remsol.co.uk/12/section.aspx/258