TUKWILA, Wash.–More than 30,000 members of BECU here have had their interest rate reduced automatically by the credit union.
Members with a credit card, line of credit or auto loan qualify for BECU’s Reprice Program, which annually evaluates members’ credit scores and payment history, and automatically lowers a member’s rate if their performance has improved.
BECU said this is the first year the Reprice Program, which is in its fifth year, has included auto loans. During September, more than 30,000 members will be informed that their interest rate has dropped.
“What we do is unique,” said Doug Marshall, BECU senior vice president of member channels and service delivery. “Most financial institutions are in the business of making money and reporting to shareholders – higher interest rates factor into that. We’re not-for-profit, so our focus is on what’s best for the members. Having a lower interest rate means they pay less and can financially do more. With the current rate drop alone, we will save our members approximately $2.8 million dollars.”
BECU said it wants all of its members to do more with their money, and that means understanding one’s credit score. “Developing a good financial history takes time – the reprice program is one way the credit union can aid members on their path to financial success,” the $13-billion BECU said.