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.
What does the credit union gain?
Doing the groundwork around scores and education allows a credit union to directly connect members with loan offers based on their score and the relationship that has grown around it. There is no guesswork or frustration for either party as the credit union can make loans that might have been beyond their visibility if members were looking up, learning about, or working to improve their score elsewhere.
Furthermore, not every member will need to improve their score to qualify for a loan. Many members' initial/current scores qualify them for tailor-made loan offers, providing immediate, context-driven value to marketing and sales.
These pre-qualified lending offers are the fulfillment of the scenario I laid out to start: Members have credit score challenges or opportunities they and their credit union might not see. Help them identify these challenges and opportunities, and get them the loan they didn’t think they could have or didn’t know they qualified for. It’s an important “win-win” that helps members prosper while also growing your credit union.