4 Features to Help Members Protect Their Credit

The current economic state is uncertain and precarious. COVID-19 will undoubtedly have an impact on members’ lives and finances — to what extent is still somewhat unknown. This is a critical time for consumers to take the appropriate actions to monitor and safeguard their credit. Now, more than ever, your members are turning to digital channels to conduct their day-to-day banking transactions. Credit unions are well known for their dedication to the financial wellness of the communities they serve, and they must continue to evolve their digital strategy to accomplish their mission.

Here are four features credit unions should offer members to protect their credit:

1. Access to Credit Score and Credit Report

Members need to monitor their credit score and credit report just as diligently as they monitor their checking account balance. Noticing a sudden and unexpected drop in their balance is a major indicator that there could be fraudulent activity on the account. The same goes for credit. Your members should do a monthly review to ensure that all information on their credit file is accurate. They should immediately dispute any inaccuracies with the bureaus before it has a negative impact on their score.

Giving members a tool to proactively review their credit score and report will save them time in the long run. Plus, other credit score sites advertise products from the big banks and aren’t necessarily promoting your products and services. Keep members protected by offering easy access to their credit score and credit report, and away from the competition.

2. Free Credit Monitoring and Alerts

Similarly, it’s important that members have a credit monitoring service working behind the scenes and in between their periodic reviews. That way, they’re immediately notified of any unexpected changes or activity that could negatively impact their credit. In today’s tech-savvy world, these alerts are practically real-time, giving members the ability to stop fraudsters in their tracks. Growing unemployment and financial strain will increase fraudulent activity and will increase chances of being hacked or scammed. The CFPB has warned about several major COVID-19 related scams that consumers should be aware of, such as fake tests, fake cures or fake charities. Give members the peace of mind that you’re watching their backs – and their credit.

3. An Interest Rate Monitoring Service

Leading experts always recommend that your members have a rainy-day or emergency fund for times such as these. Many people are unaware that there could be potential savings hidden in their auto loan or mortgage. Rates are at historic lows, which means it’s the perfect time for your members to revisit the rates they are paying. Those conversations could become more challenging as your members are encouraged to be socially distant. It’s important to provide as much information as possible online and to provide them with self-help solutions.

A pre-qualified loan engine within digital banking helps members understand which of their current loans and credit cards may have room for savings. It also gives the credit union the opportunity to cross-sell and show members how much the credit union difference can save them on those specific tradelines, while facilitating a streamlined application process. Not to mention, it keeps your products top of mind when they may be in the market for a new loan or credit card.

4. Credit Education

Teaching people about their credit and personal finance is not only a way to accomplish your credit union’s mission, but also to foster a stronger connection with your members. Right now, it’s important to provide them with an understanding of their credit score, credit report and the calculating factors behind them so they have the knowledge to make better financial decisions. Building trust through financial education encourages deeper engagement and positions the credit union as the personal finance expert that members come to for guidance. COVID-19 has presented seemingly endless new and confusing legislation, scams and potential debt, so members need strategies to handle these unforeseen circumstances. According to research from Raddon, consumers are most likely to turn to their primary financial institution (55%) when seeking resources for financial education, so be sure you’re the one providing advice and guidance to your members.

Helping your members stay on top of their credit is one of the best things you can do for them. Their current credit decisions will impact their finances today and for years to come, long after the COVID-19 crisis. Give them these tools to stay financially vigilant while they are migrating to a more remote banking environment. Further enhance the personalized member experience they expect from their trusted financial institution.

Chris Fraenza is vice president, partnership marketing for SavvyMoney, Inc., a Pleasanton, Calif.-based provider of a credit score and report, credit monitoring and pre-qualified loan solution integrated within digital banking.