DUBLIN, Calif.–Patelco Credit Union is reporting success with a program it introduced to help members build savings and credit scores.
The credit union said its ScoreUp Credit Builder Loan was “built to tackle the pain points that many people face when building or rebuilding their credit.”
To ScoreUp, Patelco members do not need a credit history to qualify, and are offered low interest rates and budget friendly monthly payments that are placed in a secure ScoreUp Savings Account, Patelco said, explaining that when the loan is paid off members then have access to funds in their ScoreUp Savings Account – building their credit score and their savings.
“It’s a win-win, and it’s working,” said Patelco. “ After as little time as two months, 31% of members with the ScoreUp Credit Builder Loan saw an increase in their FICO score. So far, 80% of members that have taken advantage of the new lending program previously had no FICO score or a FICO score of less than 630.”
With 75% of ScoreUp Credit Builder Loan participants under the age of 34, Patelco added it is also engaging younger members and encouraging healthy financial habits.
The $8-billion Patelco has more than 400,000 members.