The Market for Credit-Building: Demand, Product Characteristics, and Consumer Uses

A new report from the Federal Reserve Bank of New York examines the growing need for credit building products and how consumers use them to establish or improve their credit histories. The research draws on qualitative insights from financial coaches and practitioners, including representatives from CBA member organizations. The report highlights the important role of nonprofits and financial counselors in connecting high-need consumers with accessible, affordable credit-building products and identifies key standards for products designed to support long-term credit health.

“Credit-building products remain small-scale as consumers typically find them through referrals by financial counselors or through online searches to fintech products. However, they primarily deliver to high-need populations.”