You know the terms. Most simply, they mean a borrower is seen as a higher risk and qualifies for a higher interest rate on their loan. Of course, either classification is based on their FICO or other bureau credit scores, which paint only a partial picture of a financial situation….
Seems like a strange question, right? It’s a thing you do. It’s a thing lots of financial institutions do. Millions of auto loans go through indirect channels each year. So what’s the issue? We’re not sure the concept fits your community-focused mission. At its simplest, you’re just another lender on…
What’s the point of your lending program? Yes, it’s a real question. Is it to make enough money from interest to subsidize other institution programs? Maybe it’s to empower people to make purchases they couldn’t do on their own. In reality, you know it’s a combination. While profits might not…
As a community-based financial institution, your primary goal is to create better lives for your membership. Reducing stress and struggle with finances is the most effective way to do so. Thus, financial empowerment. This is part of a category of articles looking at ways your institution can empower members through…
You provide super powers for account holders. Really. Consider your checking account. It enables someone to pay anyone they need on a recurring schedule or directly in the moment. Plus, the funds are guaranteed safe against fraud and theft. Sure, we take it for granted, but you are providing an…