Helping Your Credit Union Members Improve Their Credit Scores

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Providing the best services for your members is critical to the success of your credit union. Indirect lending and other services can boost satisfaction and ensure the best experience for your members. In some cases, you may be able to assist with tools and products designed specifically to help improve credit scores for members of your credit union. Here are some of the most practical ways to help your members deal with credit issues now and over the long run.

Credit Builder Loans

One of the most common and beneficial solutions for repairing damaged credit ratings is the credit builder loan. These indirect lending arrangements are designed specifically to provide your members with the opportunity to save funds for emergencies while allowing them to rebuild bad credit or to establish credit for the first time. Credit builder loans are typically designed in the following manner:

  • The member takes out a loan at a relatively low rate of interest.
  • The funds are then deposited directly into a savings account or other account that cannot be accessed until the loan is paid in full.
  • In some cases, the amount in savings may earn interest dividends for the borrower.
  • On-time payments are reported directly to the credit bureaus.
  • When the loan is paid off, the member is given access to the full amount in the account.

These lending arrangements offer absolute security for your credit union while providing a valuable service for your members.

Credit Counseling

Free credit counseling services can provide real help for credit union members who may be struggling with too many financial obligations. By incorporating credit counseling into your existing array of customer service options, you can offer your members practical guidance on improving their credit scores and their financial situation.

Indirect Auto Lending Services

By establishing a relationship with a network of auto dealerships in your area, you can provide an added option for your members when financing their vehicles. By working directly with dealerships to offer credit union indirect lending services, you can often offer improved terms for your members and can encourage a higher degree of financial responsibility on the part of customers who already have a solid relationship with your organization.

CUAC can provide you with the expert help you need to set up indirect lending arrangements with auto dealerships in your service area. We work with credit unions just like yours to deliver point-of-sale financing options just right for you and your members. This can expand your revenue streams while providing you with the right tools to serve your members effectively. To learn more about our full lineup of services, call us today at 866-970-2822. At CUAC, we are here to serve credit unions now and in the future.

Helping Your Credit Union Members Improve Their Credit Scores
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