- TransUnion and NAACP launched credit education site Connecting to Our Financial Future for underserved communities.
- The partnership includes access to The Blueprint, an app that tracks wealth and your credit profile.
- There are many ways to build credit, such as secured credit cards and rent reporting services.
The average credit score in the US has consistently risen over the past two decades. The average FICO score is 714, compared to 693 in 2012. This is, in part, due to the abundance of information on credit scores that is easily accessible and the increase in credit-building products. Yet, 45 million consumers in America are still considered credit underserved or unserved, according to a TransUnion survey.
A new partnership between TransUnion and the NAACP aims to make credit and credit education more accessible.
NAACP partners with TransUnion to deliver credit resources
On March 30, TransUnion and the NAACP announced the launch of Connecting to Our Financial Future, a website that provides educational resources about credit scores to historically underserved communities. Members of the Black community have been particularly excluded from credit and wealth-building opportunities. The median credit score in predominantly Black zip codes is significantly lower than the median credit score of all communities.
“Building and establishing credit within the Black community is important now more than ever,” said Derrick Johnson, president and CEO of the NAACP. “When we look at the current state of the economy, in tandem with the need for community uplift and sustainability, it’s pertinent that Black people place importance on building our credit scores so we can ensure community prosperity.”
Hosted on NAACP’s website, Connecting to Our Financial Future is a credit information hub divided into three sections: stability, sustainability, and prosperity. These sections teach you how to establish credit, raise your credit score, and prepare your finances for a large purchase.
In addition to the educational resources found on Connecting to Our Financial Future, this partnership also provides access to The Blueprint by MoCaFi. The Blueprint is a free wealth and credit tracking app that prepares you and your finances for a mortgage.
The Blueprint provides you with a VantageScore 3.0 credit score from TransUnion. It also contains budgeting features, expense trackers, and various mortgage-related calculators.
“Even as people are increasingly empowered to responsibly access financial services and achieve important personal outcomes, we recognize significant populations — especially those in underbanked and underrepresented communities — are unable to access quality financial services because they have little or no discernible credit history,” said Hilary Chidi, TransUnion’s Executive Vice President, Head of Credit Risk Solutions, and Chief Sustainability Officer.
How to start building credit
It’s well-known that the credit system can be counterintuitive. If you want to borrow money, you need a credit score; but to raise your credit score, you need to make payments on a loan.
There are several ways to begin your credit-building journey if you don’t have a credit score.
The easiest way to build credit is to ask someone close to you, such as a family member or friend, to add you to their credit card as an authorized user. You’ll be given a credit card, and the account holder will be responsible for any money you spend. When the account holder makes a payment to the credit card company, that payment will be recorded on their credit report and yours.
Becoming an authorized user is one of the easiest ways to build credit and one that’s popular for parents looking to help their children build credit. That said, becoming an authorized user is not an available option for everyone. However, there are still products designed to help you build credit from scratch.
The most common credit-building products are secured credit cards and credit-builder loans. These products are designed to mitigate risk to the provider, so they can accept people with low or no credit scores. Once you spend some time with these products, you’ll have the credit score to move onto traditional credit products. You can find our guides for the best secured credit cards and best credit-builder loans here.
There are also an increasing number of alternative credit-building programs that don’t rely on a credit product. Instead, they report payments you’re already making, such as your utility bills or any streaming service subscription fees. There are also an increasing number of rent reporting services that report your monthly rent to the credit bureaus. The best rent reporting services will report your rent to all three credit bureaus.
Visit naacp.org/credit-101 to access the credit education website.
For more information on TransUnion’s commitment to financial inclusion and racial equity, visit transunion.com/sustainability.
About NAACP
The NAACP advocates, agitates, and litigates for the civil rights due to Black America. Our legacy is built on the foundation of grassroots activism by the biggest civil rights pioneers of the 20th century and is sustained by 21st century activists. From classrooms and courtrooms to city halls and Congress, our network of members across the country works to secure the social and political power that will end race-based discrimination. That work is rooted in racial equity, civic engagement, and supportive policies and institutions for all marginalized people. We are committed to a world without racism where Black people enjoy equitable opportunities in thriving communities.
