How to Boost Lending10.04.2017
Sixty-four percent of U.S. consumers believe it is important or very important to know their credit score. However, only 39% say they know their credit score, 48% say they know the general range of their score, and 13% do not know their score at all.
The value of a credit score comes when credit unions help members know what their score means, how they can improve it, and how they can leverage it. This culminates in powerful, tailored loan offers that can benefit both parties significantly.
What’s in a score and how does it affect them?
Providing scores is step one. After that, start educating members. They might not be aware of what their score is beyond something that gets checked during the loan or credit application process. Engage with them and give them the opportunity to build their knowledge. Dig into sample score data with them, or even their own data, showing them how their score affects their financial options.
How to influence and leverage the score?
Giving members access to their score allows them to take control of it, and allows the credit union to be a part of that process. Teach members how to build a good score, and how credit card, bill pay, and other offerings can help them automate that process. Gather data on member needs and goals along the way.
It’s advisable to conduct this as a joint exercise, because once a member’s goal or outlook aligns with their qualification for credit, the credit union finds itself in the timely position of being the lender of choice.