Building Credit without a SSN - CBA Training Institute...Apr 19, 2018 · • Lending Circ les – with Mission Asset Fund (MAF) • $60,000-80,000 Down-Payment Assistanc e Loan (DPAL)

© 2018 Credit Builders Alliance, Inc. Some rights reserved

© 2018 Credit Builders Alliance, Inc. Some rights reserved. CREDIT BUILDERS ALLIANCE and the accompanying Logo are trademarks of Credit Builders Alliance, Inc. This document is licensed under a Creative Commons Attribution‐Noncommercial‐Share Alike License (US/v.3.0).

Noncommercial uses are permitted on the condition that you include an attribution to Credit Builders Alliance. If you alter, transform, or build upon this work, you may distribute the resulting work only under the same or similar license to this one. Moreinformation regarding the license is at: http://creativecommons.org/licenses/by‐nc‐sa/3.0/ . Requests for permissions beyond the scope of the license should be directed to Credit Builders Alliance, Inc., at www.creditbuildersalliance.org/. Credit Builders Alliance ("CBA"), a not‐for‐profit organization, makes this information available for informational purposes only. This information is not intended as legal, financial, or other advice, and you and your clients should consult qualified advisors before making any decisions. CBA does not represent that any of the information will produce results.

Building Credit without a Social Security Number

CBA Members-only Webinar

April 19, 2018


www.cbatraininginstitute.org

CBA’s Training Institute


Members-only Webinars

Mark your calendar!

Identity Theft PreventionThursday, 5/17, 2pm EST

To register:

bit.ly/CBA_FTCwebinar



Agenda

Laying the Groundwork: Understanding credit reporting

Demystifying the Myths: Building credit without a Social Security Number

Considerations & the Opportunity: Addressing the challenges and best practices from an organizational and coaching perspective


Meet the Experts

Alma Rojas

Manager of Service

Delivery

The Financial Clinic

Carlos Garcia

Director of Economic

Opportunity

Hacienda CDC


DISCLAIMER

This information is not intended to be legal advice and may not be used as legal advice. Legal advice must be tailored to the specific circumstances of each case.

Every effort has been made to assure this information is up-to-date. It is not intended to be a full and exhaustive explanation of the law in any area, nor should it be used to replace the advice of your own legal counsel.

Any opinions expressed are the opinions of the speaker and not their organization.


How Credit Reporting Works…

There’s a lot of data out there

More than 10,000 data furnishers send 1.3 billionaccount updates to each of the major credit bureaus every month, along with three million Americans who move and send change-of-address notices. (CFPB)

Lots of potential for errors!


Where the Data Comes From

Bureau database

Data furnished by

creditors

Certain Public

Records Information input to pull

credit reports


Where the Data Comes From

Bureau database

Data furnished by

creditors

Certain Public

Records Information input to pull

credit reports Information

needs to be matched to

individual credit files


How does data get to the right file?


How does data get to the right file?NAME


How does data get to the right file?NAME + DATE OF BIRTH


How does data get to the right file?NAME + DATE OF BIRTH + ADDRESS


How does data get to the right file?NAME + DATE OF BIRTH + ADDRESS + SSN

Build ing Cre d it witho ut a So c ia l Se c urity Numb e r

4/ 19/ 2018, CBA Pre se nta tio n

Ba c kg round

• Ab o ut Ha c ie nda CDC• Who we se rve• Why c re d it b uild ing ?

Fre que ntly Aske d Que stions by Clie nts

• Why do c re d it c a rd c o mpa nie s a sk fo r a So c ia l Se c urity Numb e r in the a pp lic a tio n?

• Ca n I e ve n b uild c re d it witho ut a So c ia l Se c urity Numb e r?

• Do I ne e d to ha ve a n ITIN (Ind ividua l Ta xpa ye r Ide ntific a tio n Numb e r) to a pp ly fo r c re d it?

• I’ ve ne ve r ha d a c re d it c a rd o r ta ke n o ut a lo a n, will I still ha ve a c re d it histo ry?

• Ho w c a n I a c c e ss my c re d it re po rt?

• I wa s re c e ntly issue d a So c ia l Se c urity Numb e r; do I ha ve to re b uild my c re d it fro m the b e g inning a g a in?

Wha t We Know

• Wha t info rma tio n is ne e de d fro m the c lie nt to b uild / re po rt c re d it?

• Wha t info rma tio n a b o ut the c lie nt do le nde rs re q uire / re q ue st whe n ma king a lo a n?

• Wha t’ s suppo se d to ha ppe n a nd wha t’ s the re a lity?

Ca n a n individua l build c re dit without a SSN?

A: YES!

Cre d ito rs ma y le nd to pe o p le who do no t ha ve so c ia l se c urity numb e rs. A SSN is o nly o ne o f the uniq ue ide ntifie rs ne c e ssa ry to ma tc h c re d it a c c o unt info rma tio n to a n ind ividua l’ s c re d it file . Ha ving a SSN, ho we ve r, ma y inc re a se the a c c ura c y o f the c re d it b ure a us’ ma tc hing pro c e ss, b ut it is no t a lwa ys e sse ntia l.

Should a n individua l ta xpa ye r ide ntific a tion

numbe r (ITIN) be use d in the pla c e of SSN’s to

he lp individua ls build c re dit?

No, but it c ould be .

In g e ne ra l, ITINs do no t pro ve ide ntity o utside o f the ta x syste m a nd the re fo re sho uld no t b e use d fo r c re d it re po rting . Ho we ve r, the re a re e xc e ptio ns a s the re is no la w pro hib iting a c re d ito r fro m using a n ID numb e r tha t is no t a SSN to re po rt b o rro we r da ta .

Ca n some one who didn’t pre viously ha ve a

SSN but now ha s a va lid one a ssoc ia te it with

pa st c re dit history?

YES!

A va lid SSN sho uld a uto ma tic a lly b e c o me a sso c ia te d with a c o nsume r’ s c re d it file o nc e a ny c urre nt o r ne w c re d ito r o r b usine ss b e g ins re po rting tha t SSN a s pa rt o f tha t c o nsume r’ s c re d it pa yme nt histo ry. Add itio na lly, it ma y b e he lp ful fo r ind ividua ls to pro a c tive ly wo rk with the c re d it b ure a us to a sso c ia te the ir e xisting c re d it histo ry with the ir ne w SSN.

Be st Pra c tic e s

Use full na me in a c onsiste nt ma nne r on a pplic a tions for

c re dit.

All a pplic a tions: Jona tha n Ra ymond Smith

VS

Applic a tion 1: Jon R. Smith

Applic a tion 2: J.R. Smith

Applic a tion 3: Ra ymond Smith

Be st Pra c tic e s

Conta c t le nde rs a nd othe r busine sse s whe n the re is a

c ha ng e of a ddre ss a nd/ or te le phone numbe rs.

Be st Pra c tic e s

Do not provide le nde rs/ busine sse s with a n ITIN in lie u of a

SSN for the purpose of c re dit re porting unle ss spe c ific a lly

re quire d to do so .

An ITIN a nd a SSN a re not inte rc ha ng e a ble .

Be st Pra c tic e s

Inform le nde rs/ busine sse s if a va lid Soc ia l Se c urity Numbe r

is a c quire d.

Addre ssing from a n Org a niza tiona l Le ve l

• Fina nc ia l Ca pa b ilitie s Inte g ra tio n• Pro duc ts a nd Pro g ra ms

• Cre d it Build ing IDA – with Inno va tive Cha ng e s (CDFI) a nd CASA o f Ore g o n• Re nt Re po rting – with Re ntTra c k a nd suppo rt fro m Cre d it Builde rs Allia nc e

(CBA)• Le nd ing Circ le s – with Missio n Asse t Fund (MAF)• $60,000-80,000 Do wn-Pa yme nt Assista nc e Lo a n (DPAL) – with City o f Po rtla nd• Ba nking a nd Mo rtg a g e Se rvic e s – with Po intWe st Cre d it Unio n• Na tio na l Fe de ra tio n fo r Co mmunity De ve lo pme nt Cre d it Unio ns (NFCDC)

• Othe r

BUILDING CREDIT WITHOUT A SSN

4/ 19/ 2018 | CBA We b ina r

| © 2018 The Financial Clinic31

• Challenges• Coaching Approach• Tools

ON-THE-GROUND PERSPECTIVE


• Institutional• Lack of familiarity with U.S. credit practices• Credit history from former country does not transfer• Denied access to products due to company policy• Denied access to products due to lack of proper documentation• Language barriers • Inability to access free annual credit reports online through

annualcreditreport.com

CHALLENGES


• Individual • Negative perception of credit• Prefer cash transactions• Past or continued reliance on family and extended community to

obtain access to credit• Bad credit habits

• Products• Lack of access to small credit lines • Vulnerable to predatory “credit building” products • Credit cards/ loans with high transaction costs

CHALLENGES


• Financial Goals as Driver • Accountability• Expertise• Judgment Free• Strengths-Based• Customer as Change Agent

COACHING APPROACH


TOOLS: TIPSHEETS


Toolset accessible at:

bit.ly/CBA_TFC


Questions?

Sarah Chenven

Deputy Director

Carlos Garcia

Director of Economic

Opportunity

Alma Rojas

Manager of Service

Delivery


Thank [email protected]

Documents

Building Credit without a SSN - CBA Training Institute...Apr 19, 2018 · • Lending Circ les – with Mission Asset Fund (MAF) • $60,000-80,000 Down-Payment Assistanc e Loan (DPAL)