Are we lending based upon the credit score or the whole story?

Jack Kelly, Jr

VP, Consultant

Lending Solutions Consulting, Inc.

Are we letting the credit score weigh to heavily on our decision making?

Are your loan officers skilled experts at determining the direction of the score or are they score focused?

What is the true purpose of the credit score? PRICING!!

As human beings, when we see negative we think negative. We can’t help ourselves.

Our human nature on this example took us where?

If we are truly in the “solution business” (the business of saying ‘yes’) then we must use the credit score as it is truly supposed to be used, as a piece of the puzzle.

Key Elements of Building a Loan The Interview The Relationship Breaking the Barriers The Analytics Decision Making

No but, we never say ‘no’ but …

Building the Plan for the lifetime relationship

What age group is the most sought after? 25-32

What is the immediate goal for the member to work on? (i.e. no increase in revolving debt, no new trade lines/inquiries, dispute errors on credit report, focus on paying down a portion of one credit card, etc…)

1.2.3.4.

New credit score: ___________If positive why, if negative why?

The PlanMember’s Name: _______________________ Date: ____________Member’s Motivation: ______________________________________________________________________________

Current Credit Score: _____________ Goal Credit Score: _________Goal Achievement Date: ________________ Date Achieved: ___________

2 – 3 months 4 - 5 months 6 months – 12 months Other (circle one)

What is our next step to continue our positive trend? (or) What do we have to adjust and get back on track? 1.2.3. 4.

Date of next interaction with the member:** We must make direct contact with the member either in person or on the phone (Note: Leaving a message does not qualify as following up with the member.)

Member’s name:_____________________ Signature:_____________________Loan officer’s name: ____________________

The million dollar member

We often talk about the price of saying ‘no’. This is the price over a lifetime if we say ‘no’ when we make our decision based on 3 digit number.

LoanAverage

number of loans

Average dollar

amount of loan

Total

Autos 10 $35,000 $350,000

Mortgage 2 $200,000 $400,000

Credit Cards $200,000

Personal 10 $5,000 $50,000

Total $1,000,000