Good credit is key to opening the pathway to asset building opportunities like homeownership, business loans, and more.
According to new research from Abt Associates, participants in our FSS programs both improve their credit and reduce their debt significantly compared to families not enrolled in FSS. On average our clients:
Increased their credit scores by 20 points
Accrued $3,210 less debt
FSS participants were also more likely to achieve and maintain a credit score of at least 660, improving their ability to pursue opportunities like starting a business, buying a home, or education for themselves or their children. Plus, a higher credit score and lower debt positions clients to secure better interest rates – leading to significant savings long term.
The research examined residents with our partners at Cambridge Housing Authority, Metro Housing | Boston, and the Preservation of Affordable Housing (POAH) who enrolled between May 2016 and March 2019. Notably, when researchers extended the timeline into the COVID-19 pandemic, families maintained these strong outcomes and positive economic progress. This expanded study is consistent with previous credit and debt findings conducted by Abt in 2017.
As the country continues to grapple with inflation and economic uncertainty, this latest study underscores the power of FSS to support families with low incomes, particularly Black and Hispanic/Latino families, to improve their credit, reduce debt, and build assets.