Bad credit is an expensive burden that can cost credit union members far more than a low FICO® score. Bad credit doesn’t just affect member loans; it actually extends to many other areas.
Having bad credit can make it nearly impossible to get a new car, apartment, personal loan, or even a house. Even something as simple as getting a new credit card might be out of the question for a member with a negative credit history. These tangible effects do not even take into account the emotional stress a member is likely to endure in the face of these issues.
Bad credit also means members pay higher interest rates when they borrow. This can impact other expenses, such as car insurance. Insurers have figured out that people who ruin their credit are also more likely to destroy their car. Finally, it can affect members’ ability to find work. Many employers believe that those who aren’t responsible for their own money might not be responsible for the boss’s money either.
Managing and understanding credit scores is more than money management. It enables members to understand their values, visions, and goals, and eventually to make decisions that allow them to live fulfilling lives. This is when members realize that taking control of their credit ratings is so much more than financial and makes a difference. Ser Tech has worked with over 3,000 credit unions to help their members for over two decades.
We recommend that credit unions empower their members to recognize that their credit health is more than just a score. This provides huge opopportunities for both the credit union and its members. We believe there is a real need for products and services that can help the credit union and its members improve their credit awareness, education, credit score and ultimately their financial acumen. For this reason, our company created Flitter™.
Educate Members while increasing an enhanced experience with Flitter™which gives your members not those other education scores, but the real, authentic FICO® score – the score that really determines which loans and loan terms they qualify for. Each Flitter the report provides the FICO of the member® Score and the main factors that affect it, along with an in-depth explanation.
Our recommendation is that credit unions providing easy and easily accessible score-based online training where members can learn more about credit and what their individual reports mean. With enhanced personal and personalized information, credit unions can learn more about their members and their credit concerns.
With Flitter, we’ve taken what we’ve learned and developed a unique approach that will help credit unions help their members build and grow their wealth, by creating a comprehensive program that covers all aspects of their financial life.
Ultimately, credit unions should take the time to get to know members as individuals while partnering with them to create a plan to help them achieve financial peace. Listening more and talking less will help members find their own answers and gain peace of mind. By inviting members to talk honestly about their credit scores, you can connect with them, learn more about their financial concerns, and help them become even more self-sufficient in managing their financial future.