How Lenders Can Help Borrowers Improve Their Credit Score


It’s no secret that credit scores can hinder a potential borrower’s ability to qualify for the best loan program, which can ultimately lead to poor borrower satisfaction.

At HousingWire’s Spring 2021 Annual Summit, CreditXpert Vice President of Sales and Customer Success, Matt Hydrew, and Todd Worthington, Director of Qualification Support at the Bank of England, discussed top strategies. range that lenders can use to help borrowers better understand their credit score.

“Consumers have more access to credit scores than ever before,” Hydrew said. “They can go online and figure out their FICO score, but mortgage credit scores are different. For lenders, it is important to help borrowers understand these ratings and their complexity.

Borrowers don’t always know or understand the impact of their credit or debt-to-equity ratio on the type of loan they qualify for. This is where lenders can step in to provide their customers with a better understanding. By implementing a credit process, lenders have the ability to help borrowers get approved for a loan, even after they have been previously turned down.

Some borrowers may qualify for a loan, but due to bad credit, the loan will not come with the best terms. If an interest rate is too high, borrowers might look elsewhere. Or, give up searching altogether.

“During a typical pre-qualification at a bank, I’ve seen customers come in and if their credit wasn’t good enough, they just got a denial letter with a 1-800 number at the bottom with a bad credit counselor. It’s not a good experience,” Hydrew said.

Instead of turning down customers and losing potential business, implementing a credit process can help you retain those customers.

CreditXpert’s Credit Xpert Process

CreditXpert, a software solutions company, provides loan officers with the tools to help their clients realize their dream of home ownership. With CreditXpert’s Credit Xpert process, applications with poor credit are automatically routed to a credit specialist who works with the applicant, loan officer, and CreditXpert tools to determine the best course of action. This allows the loan officer to focus on sales activities and provide their prospects with better service.

Most lenders rely on loan officers to determine how best to help customers with poor credit. But not all loan officers have the time or the know-how to effectively help a client improve their credit. By implementing a credit process, loan officers are able to transfer leads to people who specialize in helping applicants improve their credit scores. Once their scores improve, these applicants can become clients, then apply and hopefully get approved for a better loan.

“You want to work for a company like the Bank of England that will invest in technology to help you qualify applicants, so you really have tools like a credit expert and a qualifying tournament to close more ready,” Worthington said. “So you focus on being a loan expert, and the qualifying team can focus on closing those loans.”

Improve the customer experience

Borrower experience is crucial to lending success, and it’s something not all banks focus on. Prospective borrowers not only need to know if they are approved for a loan, but if they are not, they need to understand how they may be approved in the future. By effectively using credit report technology, lenders can help borrowers who have already been turned down. Technology can allow lenders to educate borrowers.

Having the right process in place to empower consumers to become lending experts will help lenders improve recruitment, cultivate better relationships with borrowers, increase efficiency, and close more deals. It’s important to note that building a qualifying team doesn’t have to be a difficult task – just think about how you can start at a smaller level and then grow slowly.

“A credit process can also help build referrals because there’s a good chance the clients you help will spread the word to other borrowers, and so on,” Worthington said.

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