SEATAC, Wash., and TIGARD, Ore. (9/22/15)--More than 30,000 members of BECU will get nearly $3 million in savings through new, lower interest rates, thanks to the Tukwila, Wash.-based credit union’s annual Reprice Program.
Members with a credit card, line of credit or auto loan qualify for the Reprice Program, and were recently notified of their new rates, the credit union told the Northwest Credit Union Association (NWCUA) (Anthem Sept. 17). This is the first year the program has included auto loans in the mix.
The Reprice Program, now in its fifth year, annually evaluates members’ credit scores and payment history. If their performance has improved, it automatically lowers their interest rate.
This year’s current rate means members will save about $2.8 million, said Doug Marshall, BECU senior vice president of member channels and service delivery.
“What we do is unique,” he said. “Most financial institutions are in the business of making money and reporting to shareholders--higher interest rates factor into that. We’re not-for-profit, so our focus is on what’s best for the members.” He noted that having a lower interest rate means members pay less and can do more financially.
Part of being able to do more financially includes understanding credit scores. Developing a good financial history takes time, said BECU, noting its Reprice Program is one way to aid members on their path to financial success.
Credit unions of Oregon and Washington delivered $352 million in savings to members from better interest rates, better returns on interest-bearing accounts and fewer fees, said NWCUA, citing a 2014 report from independent economists at ECONorthwest.