ATLANTA (6/18/15)--Through a new agreement between Equifax and Credit Builders Alliance (CBA), nonprofit organizations will be able to report loan data directly to Equifax, expanding its database to include financial information that would help consumers with thin or no files build credit.

By adding nonprofit data to the credit file, Equifax and CBA aim to serve the 26 million Americans who lack a credit report, and have been deemed “credit invisibles.” Consumers with limited credit histories reflected in the credit records maintained by the three nationwide credit reporting agencies face significant challenges in accessing most credit markets, according to a recent report from the Consumer Financial Protection Bureau (CFPB).

There is a strong relationship between income and having a scored credit record, according to the CFPB. Almost 30% of consumers in low-income neighborhoods are credit invisible and an additional 15% have unscored records.

"Lacking a credit report can impact these consumers' opportunities for gaining employment and qualifying for loans, often resulting in higher deposits for services such as cell phones and utilities,” said Dara Duguay, CBA executive director.

CBA was created by and for its nonprofit members to help nonprofit lenders report loan repayment data to the major credit bureaus.

"We support CBA's views that good credit is essential to achieving fiscal health and stability, and have also pledged to fund a pilot program that will help credential 170 nonprofits to report data to Equifax,” said Michael Gardner, Equifax senior vice president.