It Pays To Pay On Time

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To build member loyalty and reward good financial habits, Lift is a software program that allows the credit union to automatically lower interest rates annually for members who make payments on time.

The effort targets those with weak credit scores who don't qualify for reduced rates. Chief Innovation Officer Denise Gabel explained that Lift software is written to interface with any core processing system and can be used on all types of loans. In addition to lowering the rate and monthly payment, Lift also makes the proper adjustments to all of the corresponding loan elements, such as the amortization schedule, and ensures the loan remains compliant.

"Lift is for those borrowers who wish they could get that great, published A-plus rate, and can't," Gabel said. "So you start off with a higher rate, pay on time, and the credit union sends you a letter that says if you pay on time for another six months your rate will be lowered."

Lift also delivers full reporting capabilities, so the CU, at a macro level, can show how they are helping low-credit-score members improve, Gabel said. Lift is in preliminary testing with five credit unions in Madison.

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