Centennial, CO, April 2016: ClearChoice Interest-free Shopping Program has had its first year testing an account-based underwriting algorithm with three beta clients and have had NO defaults. While the loans average $800, for products such as appliances, electronics and furniture, the data from the three credit union shows that 60-70% of the members in the program are non-prime. Account-based underwriting is proving to be reliable and with the proper monitoring and tracking, a great way to deepen the relationship between the member and the credit union.

“The shopping platform and underwriting guidelines are proving a powerful formula to help all members shop stress-free,” explains CEO Eric Webb. “By providing a reliable and fair priced shopping channel coupled with an interest-free loan, our beta clients are receiving a lot of traction from those members that are made loan-eligible and even those that are not initially loan-eligible. “
Because the program is based on your account history members that are not initially qualified for an interest-free loan, can have a discussion with the loan department to determine what they need to do to become eligible. “This sets up a great discussion with the member to help them understand if they need to maintain a higher average balance or open a certain type of account. Maybe it’s recommended they get direct deposit,” explained Webb. “The value of the program is that it creates discussion with your members, especially those that are credit challenged. When a member has a goal it’s much easier to teach financial management though a discussion that tells them what they need to do.”

ClearChoice has recently signed a fourth client, due to rollout in late spring, and signed an agreement with CU Xtend (a subsidiary of CU Answers) to market the Interest-free shopping platform to their credit union clients.
Headquartered in CO, the ClearChoice Interest-Free Program is a revolutionary way to look at lending, and increasing revenue for credit unions, while bettering the lives of their members. ClearChoice is centered around the mission of leveraging relationship lending to make products affordable and payments stress-free for everyone.