... that I'm young, is it?
😎 Asked these questions yesterday: 1) Why is a newly minted N.C. teacher assumed to be "guilty until proved innocent" in terms of credit at SECU?** 2) Why does "the Board" assume that all young people are not creditworthy and stick them with the worst SECU loan rates? 3) Do you as a member support this policy?
** Under the new SECU 3-tier risk-based lending policy, members with "no credit score" receive the highest loan rate ("C"-tier). Borrowers with "no credit score" are usually folks just starting out in life - young people who haven't had access to credit. Young folks need a lot of stuff - a car, furniture, rental deposit, for example - and of course a credit card!
😎 Another question: Which generation has the lowest credit score? (Here are some straight answers from one of the largest lenders in the U.S.)
How Does My Age Affect My Credit Score?
"As of 2022, the generation with the lowest credit score is Gen Z (18-25). That said, the generation with the lowest credit score is almost always going to be the youngest generation of adults. That’s because credit history is an important factor in credit scoring."
"Technically, age is not a factor in determining your credit score. You can be young and have a high credit score and vice versa. The reason credit scores tend to trend upward as you age is tied to the length of your credit history. The longer your credit history, the better your credit score."
✅ Leigh Brady, the current CEO at SECU, knows full well that SECU's risk-based lending practices (whether 3-tiers or 5-tiers!) are unjust and discriminatory against younger members. Ms. Brady acknowledged the unfairness publicly at a 2023 SEANC Board meeting [link] - be sure to reread this story! At the meeting, before the full SEANC leadership, Ms. Brady cheerfully reported that her new college-grad daughter had been rated as a "risky borrower" under the SECU 5-tier RBL system. Under the "new, improved" 3-tier RBL system, Momma would still have to cosign.
Folks at SEANC weren't impressed then and would imagine they still aren't now.
✅ As a member-owner of SECU, you do have a choice and a voice in how young, SECU borrowers are treated at your Credit Union. These young adults are not only your fellow members; they are your co-workers, your friends, your neighbors, your children, your grand-kids - SECU's future!
... when will you stand up and speak out for "SECU's future"?
What will it take?
