OKLAHOMA CITY, Ok.-Include FAA Credit Union among the growing number of CUs offering free credit reports to not only help the member but the credit union, as well.
The $518-million FAA CU's free Credit Score Analysis program provides a review of a person's credit report, including an explanation of how a credit report works, what affects a credit score, and steps to take to repair a low or damaged score. A financial services professional provides specific guidance on how to increase the person's score as well as a calculated prediction of where the credit score will be within a specific amount of time.
"We want to help members dive deeper into their credit scores to find ways to save them money," said VP-Marketing Alison Wolf, who noted cross-selling needed services achieves that goal, as well as increases the number and depth of relationships. The CU's loan apps jumped by 9.5% in October, over the same period last year, after the program was launched in August.
The offer targets members and non-members, but FAA Credit Union likes to perform the credit score analysis with as many new members as it can. It averages about 300 new members a month, and about 100 a month are currently taking the credit union up on the free service.
The goal, said Wolf, is to save families a significant amount of money during their relationship with FAA, and that the program is off to a great start, saving members $238,323 in interest payments in three months.
One Member's Story
"We worked with an individual who had a high-interest-rate credit card and moderate-interest-rate loan. After the Credit Score Analysis we lowered her credit card interest rate by 13%, and saved her $27,000 over the course of her loan."
Wolf said there have been numerous similar success stories, such as consolidating the balances of multiple high-rate credit cards to save someone almost $6,000 when the balance is paid off. Another member was paying 8.9% on an auto loan elsewhere and had her rate cut to 2.99%.
To promote the service, FAA CU has used direct mail, social media, in-branch signage, and on Fridays staff wear t-shirts that ask "What's your score?" No appointment is needed for a session.
Wolf noted that what also led to offering the analysis is that the CU realized it had been granting a lot of loans to higher credit score members, but had been unintentionally turning away lower scores due to credit issues.
"We find now that working with lower-score individuals one-on-one we can either find a way to make the loan or help them raise their score to eventually get a loan."
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