3 Benefits of Credit Counseling for Banks
As a bank or financial lender, you provide a critical service for individuals. Paying out of pocket for big-ticket items isn’t always an option for people. For others, you may even be providing the loan that helps them put food on the table for their families.
With a service like this, though, there’s always an inherent risk for the institution. Offering borrowers access to credit counseling is a great way to help them while ensuring security for your institution as well. Below are three of the top benefits of credit counseling for banks.
Get Paid More Consistently
When people find themselves in a lot of debt and start to feel underwater, they can panic. Many choose to completely ignore the fact that the debt exists as a classic “if I can’t see it, it isn’t there” tactic. While this may work for some for a while, we all know that eventually, they’re going to need to pay you back.
The basic fact is that when consumers don’t pay, you lose money. Don’t wait until it’s too late to set your clients up with a credit counseling service. Offering this resource upfront may save your institution hundreds of thousands of dollars over time.
In fact, according to a survey, just three months after receiving credit counseling, 73% of individuals began paying their debts on time more consistently.
Build a Better Relationship with Your Clients
Showing your clients that you have their best interests at heart from the very beginning is a great way to start building a lifelong relationship. They’ll put their trust in you anytime they have financial needs in the future because they know you’ll work with them to help them succeed.
When it comes to financial security, people need to know that they’re in the very best hands. Even if you’re working with a client who is slightly overdue in payments or expressing difficulty repaying, referring them to a credit counseling service and sticking with them throughout the process can inspire trust and faith from the client.
Help Create Your Ideal Client
Helping your customers find quality credit counseling can create a strong relationship on both sides. Not only will your cardmember trust you more, you’ll be able to trust your client more. This can lay the foundation for a lifelong client that you can count on to repay their debts when they borrow from you.
Contact Peregrin Today for Credit Counseling Services for Banks
Not sure where to find credit counseling services for banks or lending institutions? Peregrin can help. We offer a variety of process solutions for lenders, including customer referral management. We can help you help your clients find great credit counseling agencies so you can avoid losing them to a debt settlement or bankruptcy options.
We also provide DMP processing, portfolio support, and agency management, all of which can save you time and money. Give us a call today at 1-800-231-2493 or contact us on the website for more information.