As the world begins to rebuild following the far-reaching impact of the coronavirus, consumers are seeking guidance regarding their financial status.
Now is the time to work with consumers on refinancing their current loans. By helping borrowers refocus and lower their monthly financial outlay, they have the opportunity to improve their financial health, and so does your credit union.
Auto loans have been credit unions’ bread and butter for decades, and no one does them better. Auto loan interest rates over the last several years have averaged 4% to 5%, according to ValuePenguin. Taking the time to work with your members and leveraging their payment history, refinance rates can be nearly half that rate, depending on your credit union’s underwriting criteria, saving your members money now to help them recover.
Open Lending can help you say ‘yes’ to more auto loan refinancings. Learn more here!
Mortgage rates have been falling to near record lows as well. Helping homeowners refinance their mortgages made over prior years can help families for years to come. The Washington Post reported interest rates are down nearly 1% from a year ago, at near-record lows. A single percentage point can save members hundreds per month and thousands over the life of the loan.
Credit unions must not pull back the way other lenders do during times of crisis; these are the times we’re meant to function best. Understanding your specific members’ challenges will help your credit union tailor offers to help improve their overall position financial situation and position your credit union to succeed. Times of crisis are excellent opportunity for credit unions to build trust and awareness with consumers and strengthen your position as a pillar of the community. Not-for-profit credit unions have the luxury of building the 100-year company. Start today.
Contact Open Lending today to learn more about how we can help you grow auto loans!