Trans Union Corp. and a nonprofit group have joined forces to incorporate underserved urban residents into the credit system.
The Chicago-based credit bureau and Operation Hope, which is known for helping residents of Los Angeles' inner city obtain loans and other credit, are sponsoring a series of seminars.
People who attend the seminars get a free copy of their credit report from Trans Union. The first seminar, held March 23, attracted more than 200 Los Angeles residents.
"Most of the people wanted to know how to correct inaccurate information in their reports" and to correct credit problems, said Jim Haywood, Trans Union's western regional vice president.
Trans Union also set up a Credit Helpline so that people can make a toll-free call to inquire about their credit reports or to request one. Mr. Haywood said the credit bureau is likely to continue offering its $8 reports for free through the hot line even after the 12 months during which the seminars will be offered.
"The Helpline was developed so that people know this is not a quick fix. We are grooming a new generation of borrowers," said John Bryant, founder and chief executive of Operation Hope.
Representatives of Trans Union and the Los Angeles Consumer Credit Counseling Service spoke at the first seminar.
In addition, Operation Hope promoted its secured credit card for small businesses and consumers, which is issued and managed by Orchard Bank, Ontario, Ore., and Renaissance Bankcard Services.
"Secured cards are presented as a good building block" to obtaining more credit, said Irving J. Levin, chief executive of Renaissance.
Launched nearly a year ago, Operation Hope's secured credit cards "are fulfilling a desperate need," he said.
The program currently has fewer than three thousand cardholders, mostly from South Central Los Angeles.
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Separately, Orchard Bank and Chicago-based Bally's Total Fitness have quietly been offering a credit card to the health club's customers. In 1994, Bally's had tested such a card with Providian Bancorp, but the deal fell through last year.
Bally's and Orchard will launch the cobranded card program within a few months. Orchard now is simply offering its own credit card to health club members who pay their membership dues in monthly installments.
