Credit Building in IDA Programs

Abstract

Objective: This article reports on the impact of the Individual Development Account (IDA) program on credit. Method: Using a convenience sample of IDA participants ( N = 165), data were analyzed using paired sample t tests, independent sample t test, one-way analysis of variance, Mann–Whitney U Tests, and Wilcoxon Signed Rank Tests. Results: Results indicate that participants improved their credit history and score, as compared with nonparticipants, and those who completed the program within a year experienced the most positive change in credit score. Conclusion: IDAs facilitate improvement in credit score and history.