Empowering Consumers’ Financial Lives With Credit Scores
Ser Tech & FICO team up to deliver real time FICO Scores with FSOA
Sarah. Cooke, Friday, April 30
There’s a lot of confusion for consumers about their credit scores, which is to be expected when borrowers receive ‘educational’ scores from various services does not often match lenders see in the FICO score. Most consumers, and Ser Tech, believe it’s important to see the scores lenders use during the loan approval process when making borrowing decisions. In our recent Ser Tech Live Session, we spoke with Jenelle Dito and Magali Courbage of FICO and discussed why sharing the scores lenders actually use is critical for consumers, and how this empowers consumers when making financial decisions.
FICO credit scores are the most well-known and valued by consumers and lenders. Consumers need access to financial options that best fit their current needs; unless they know their true credit score, they may find out too late that they don’t qualify for a much needed loan or they’ll get hit with a higher than expected interest rate and, thus, payments.
As a credit union, providing your members with the ability to view their FICO credit scores gives them the power to make more informed financial decisions and change their credit habits for the better. An independent research study conducted at the University of Wisconsin analyzed student loan borrowers, finding those who had access to their FICO score and regularly received updates when it changed had fewer late payments, viewed their score more often, and earned higher credit scores compared to those who did not receive them.
Credit unions can reap the benefits, too! In addition to building trust with your member base, sharing credit scores with members provides your credit union the opportunity to expand their usage of various lines of business and services. It also promotes growth in other channels, such as on mobile and other member communications.
Access and transparency when it comes to members’ FICO credit scores builds trust between borrower and lender and more educated borrowers. Members know where they stand on the credit scale, educate themselves, and make more informed financial decisions, and credit unions have another tool in their pocket to work with members and help them reach their financial and lifestyle goals.