Helping Customers Understand the Importance of Credit Reports
by Sam Ott
The latest edition of the FDIC Consumer News is out, and it aims to help consumers learn more about why it is so important to keep their credit reports squeaky clean. Many customers are aware that credit reports and credit scoring are used by financial institutions to evaluate loan applications. They may not realize, however, the effect that a bad credit report or a low credit score may have on their ability to obtain a favorable insurance policy, rent an apartment, or even be considered for a better job. The new FDIC publication is titled "Consumer Special Report on Credit Reports and Credit Scores", and it is filled with information about the consequences of a low credit score or a negative credit report, as well as suggestions for ways to avoid bad credit reports in addition to pointing out problems arising from scams and ID theft.
The materials are written for customers, not bankers, and even include a quiz which allows the customer to test their knowledge of the subject. The data provides an excellent opportunity for a financial institution to provide a valuable service to its customers and also potentially improve the credit ratings of loan applicants by providing a well-written, informative educational piece that a financial institution could disseminate within its community or customer base. The information could be made available to customers in many ways, including:
Featuring a blurb about the report on your institution's Web site, along with a link through to the publication itself;
Printing of the articles for handouts by loan officers
Repring portions of the information in any institution newsletter or other customer-directed publication.
Utilizing the material in offering educational sessions to customers, educational forums, and community groups.
In addition, links are provided to articles regarding federal laws, credit bureau information and general information for consumers from the regulators. The online publication provides a good index of reference material for your customer service and loan officers who are asked credit report or credit scoring questions.
Copyright, 2003, Bankers Online. First published on BankersOnline.com 03/06/03
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