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Credit Score Building

Credit ratings are the most important factor used to evaluate an employees financial health. Their credit score ultimately sums up how good or bad they've been in their past involvement with credit. The better the score, the easier it is to be approved for future access to not just credit itself, but credit with favourable interest rates.

 

Unfortunately, these ratings are not always a true representation of an employee's real world credit worthiness. Poor or non-existent scores can often run rampant in your employee base simply due to groups being either new to the country or not having significant credit based interaction in the past. The paradox. Only more positive credit interaction will act to improve these potentially unfair ratings. 

A New Approach To The Problem

At Benefi we understand the inner workings of the credit rating systems and therefore also understand the best and quickest way for that system to be influenced. By far, the best way to significantly impact a credit score is to significantly impact credit payment history.  What't the best way to tangibly accomplish this? To provide a loan based product that has build in guaranteed payments while also having 100% late payment avoidance. 

Benefi's Credit Score Improvement service is a mix of forced savings and loan repayment. The CSI loan is issued to an employee but no monetary sum is provided up front to the employee. Rather, loan payments are deducted directly from the employees salary based on the "shadow" loan amount, subsequently categorized as official loan payments and reported as such to the various credit bureaus.

 

These payment amounts are then also deposited into an employee named account, building up that account balance over time with savings available to the employee at set dates, based on pre-determined repayment levels. 

The end result is a win-win for your employees. A substantial balance savings account with funds that can be set aside for emergency needs or investment, accompanied by a significantly improved overall credit score.

Too Few Employees Are Fairly Analyzed For A Good Credit Rating

A good credit score can save employees hundreds of thousands of dollars over a lifetime. An employee with good credit will have more lenders or credit providers competing for their business, offering better rates, fees, and perks. Conversely, those with poor credit ratings will be subject to criminally high credit rates with little chance of escape without timely intervention.

Traditional lenders currently use only 5 primary metrics to evaluate employee credit:

  • Payment history (35%)

  • Credit usage (30%)

  • Age of credit accounts (15%)

  • Credit mix (10%)

  • New credit inquiries (10%)

The Benefi Financial Wellness Platform is designed to incorporate  new approaches to credit evaluation and provide your employees with the advanced analysis and tools needed to become more fairly financially recognized.