BECU Lowers Interest Rates for Over 30,000 Members

image courtesy of phinneybischoff

Thousands of BECU members were recently notified of their new interest rate—a lower one. Members with a credit card, line of credit (LOC), or auto loan qualify for the credit union’s Reprice Program.

The program annually evaluates members’ credit scores and payment history, automatically lowering a member’s rate if their performance has improved. Now in its fifth year, 2015 marks the first time that the BECU Reprice Program includes auto loans.  During the month of September, over 30,000 members will be informed that their interest rate has dropped.

“What we do is unique,” said Doug Marshall, BECU Senior Vice President of Member Channels and Service Delivery.  “Most financial institutions are in the business of making money and reporting to shareholders—higher interest rates factor into that. We’re not-for-profit, so our focus is on what’s best for the members. Having a lower interest rate means they pay less and can financially do more.  With the current rate drop alone, we will save our members approximately $2.8 million dollars.”

In 2014, a report from the independent economists at ECONorthwest found that the credit unions of Oregon and Washington delivered $352 million in their members. This direct member value came in the form of savings on better interest rates, better returns on interest bearing accounts, and fewer fees.

BECU says that it wants all of its members to do more with their money. Part of being able to do more is understanding credit scores. Calculating credit worthiness based on a member’s payment, loan, account, and balance history, a credit score is a good assessment of financial behavior, and is used to help determine loan borrowing rates. Developing a good financial history takes time, says BECU—the reprice program is one way the credit union aids members on their path to financial success. 

BECU offers helpful tips for pulling, reviewing, and monitoring one’s score on their website.

Questions about this story? Contact James Pearson: 206.340.4790, jpearson@nwcua.org.

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