Connect, formerly PRBC, is a

consumer credit reporting agency A credit bureau is a data collection agency that gathers account information from various creditors and provides that information to a consumer reporting agency in the United States, a credit reference agency in the United Kingdom, a credit report ...

, more commonly referred to as a

credit bureau A credit bureau is a data collection agency that gathers account information from various creditors and provides that information to a consumer reporting agency in the United States, a credit reference agency in the United Kingdom, a credit report ...

in the United States. It is similar to the other four U.S. credit bureaus (

Equifax Equifax Inc. is an American multinational consumer credit reporting agency headquartered in Atlanta, Atlanta, Georgia and is one of the three largest consumer credit reporting agency, consumer credit reporting agencies, along with Experian and T ...

Experian Experian plc is a multinational corporation, multinational data broker and consumer credit reporting company headquartered in Dublin, Ireland. Experian collects and aggregates information on more than 1 billion people and businesses including ...

TransUnion TransUnion LLC is an American consumer credit reporting agency. TransUnion collects and aggregates information on over one billion individual consumers in over thirty countries including "200 million files profiling nearly every credit-active co ...

and

Innovis Innovis is the credit reporting division of CBC Companies and is considered the fourth largest consumer credit reporting agency in the United States, behind the “big three” Experian, TransUnion, and Equifax. Based in Columbus, Ohio, the co ...

) in that it is an FCRA (

Fair Credit Reporting Act The Fair Credit Reporting Act (FCRA), 15 U.S.C. § 1681 ''et seq.'', is federal legislation enacted to promote the accuracy, fairness, and privacy of consumer information contained in the files of consumer reporting agencies. It was intended ...

) compliant national data repository. Connect differs in that consumers are able to self-enroll and report their own non-debt payment history, and they can build a positive credit file based on

alternative data In economic policy, alternative data refers to the inclusion of non-financial payment reporting data in credit files, such as telecom and energy utility payments. Types Alternative data in the broadest sense refers to any non-financial informat ...

, such as timely payments for bills including rent, utilities, cable, telephone, and insurance that are not automatically reported to the other bureaus. The Connect service is offered free of charge. When someone takes out a loan, the lender or merchant will pay a fee to Connect so they can see his or her alternative credit rating.

Company history

Connect was incorporated on March 12, 2002, under the name Pay Rent, Build Credit, Inc. The company name was later shortened to PRBC because all recurring bills and loan payments can be used to build credit, not just rent. PRBC received two initial funding grants from the

Ford Foundation The Ford Foundation is an American private foundation with the stated goal of advancing human welfare. Created in 1936 by Edsel Ford and his father Henry Ford, it was originally funded by a $25,000 (about $550,000 in 2023) gift from Edsel Ford. ...

in support of the company's mission to build a national data infrastructure that incorporates rental payments into credit reporting to benefit consumers. PRBC also received funding from the

Omidyar Network Omidyar Network is a self-styled "philanthropic investment firm," composed of a foundation and an impact investment firm. Established in 2004 by eBay founder Pierre Omidyar and his wife Pam, Omidyar Network has committed over US$1.5billion to no ...

, The Center for Financial Services Innovation and TTV Capital. Initial data subscribers included

Fannie Mae The Federal National Mortgage Association (FNMA), commonly known as Fannie Mae, is a United States government-sponsored enterprise (GSE) and, since 1968, a publicly traded company. Founded in 1938 during the Great Depression as part of the New ...

Freddie Mac The Federal Home Loan Mortgage Corporation (FHLMC), commonly known as Freddie Mac, is an American publicly traded, government-sponsored enterprise (GSE), headquartered in Tysons, Virginia.United States Patent and Trademark Office The United States Patent and Trademark Office (USPTO) is an List of federal agencies in the United States, agency in the United States Department of Commerce, U.S. Department of Commerce that serves as the national patent office and trademark ...

for the company's technology and method for collecting data on commonly recurring bill payments made by individuals and small businesses and incorporating them in a credit file, credit report, and credit score. In December 2006, Fannie Mae and Freddie Mac acknowledged that PRBC reports comply with standards for establishing the credit reputations of borrowers for loans that can be sold to them. In March 2007, mortgage insurer Mortgage Guaranty Insurance Corporation (MGIC) announced an agreement to use PRBC Reports with PRBC Bill Payment Score (BPS) to automate their approval decisions for consumers with "thin" or no traditional credit histories. At the end of 2007,

FICO FICO (legal name: Fair Isaac Corporation), originally Fair, Isaac and Company, is an American data analytics company based in Bozeman, Montana, focused on credit scoring services. It was founded by Bill Fair and Earl Isaac in 1956. Its FIC ...

and PRBC announced a partnership to deliver the PRBC Credit Report with FICO Expansion Score, a comprehensive credit risk management tool that U.S. mortgage lenders can use when assessing the risk of applicants who have little or no traditional

credit history A credit history is a record of a borrower's responsible repayment of debts. A credit report is a record of the borrower's credit history from a number of sources, including banks, credit card companies, collection agencies, and governments. A bo ...

. In December 2008, it was announced that PRBC was acquired by MicroBilt Corporation,MicroBilt Opens 50 Million Consumer Market to Small Businesses
, "MicroBilt Corporation Website", December 30, 2008. providing small to medium-sized businesses with the use of alternative data in order to make informed credit decisions. On September 12, 2012, PRBC launched PRBCMainStreet.com. PRBC MainStreet is intended as a community of businesses that will offer credit to underbanked or credit-underserved consumers by using PRBC's alternative credit reports. In November 2020, PRBC changed the name to Connect.

References

{{DEFAULTSORT:Connect Financial services companies of the United States American companies established in 2002 Financial services companies established in 2002 Credit scoring

Company history

See also

References