While growing up, I had the opportunity to participate in The Boy Scouts of America. I gleaned a lot from scouting beyond camping hijinks and how to tie knots. One of the most important lessons came from a leader who constantly chided us with the adage, “It’s hard to solve a problem until you know what it is.”
Members rely on their credit union to help them identify ways to achieve financial prosperity. In turn, credit unions serve as the gateway to loans and other financial vehicles that keep members’ lives moving.
But if members don’t qualify for these loans due to a poor credit score—especially when a low score is combined with minimal understanding of how to improve it—both the member and their credit union miss out on opportunities.
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.
At the same time, the Expectations & Experiences consumer trends survey from Fiserv finds that 81% of U.S. consumers say they prefer to turn to one or two institutions for their financial needs. But when it comes to credit scores, many people must go to third parties for information, because their primary financial institution(s) don't make it available.
Providing scores is useful, but ultimately not enough. The real value 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.
NEXT: What’s in a score and how does it affect them?