Have you read the first part of this series on how you can make the most out of Skip A Pay? Click here to read it! Here are 3 more ways you can take advantage of this program to benefit your members and your credit union:

Educate members on the important points to consider before signing up 

While Skip A Pay is an amazing program that has helped thousands of credit union members across the country, there are important considerations that they need to keep in mind before signing up for it. Make sure to properly inform them of all potential drawbacks so you stay transparent and honest with your clients.

It’s important to educate members that skipping a payment means lengthening the life of their loan. Many members make the honest mistake of thinking that they won’t need to make up for the skipped payment, so it’s crucial that they know the program essentially moves the current month’s payment to the end of the loan.

One other point to consider is that although Skip A Pay prevents members from having to use their credit card due to the extra cash they’ll have, they will eventually be billed for interest on that month’s skipped loan payment. This interest will be paid at the end of the loan terms so this means they’ll have to pay a little bit more in interest during the life of the loan.

Make the terms and conditions of the program easy to access in-branch and on your website

Since many members are unfamiliar with the program, it’s best to compile “Frequently Asked Questions” or bullet points of the important terms related to Skip A Pay. Here are a few questions that members tend to ask about the program:

• How many times can a member request Skip A Pay?
• How much is the fee?
• When can we apply for Skip A Pay? 
• What criteria should we meet to qualify for the program?
  • The types of loans that are qualify for this program
  • The length of good payment history (usually at least 6 months)
  • Other factors

Optimize the sign up process for the Skip A Pay program

Aside from advertising the program by putting up posters or offering brochures in-branch, don’t neglect all the space you have on your website. Task your IT and Marketing teams to set up eye-catching banners, write relevant blog articles and social media posts, and include prominent buttons and links to your Skip A Pay signup page. Make sure to test the process thoroughly and ensure the process is as efficient and easy to understand as possible. Always consider that you may have older members who are unfamiliar with online sign up processes.

Conclusion

Grow and improve your credit union’s consumer loans by offering Skip A Pay. The usual problem that credit unions have with the program is that it takes time for them to evaluate whether or not a member is qualified. Since each request is unique, it might take longer than the time members are willing to wait to receive an answer. 

With IMSI’s Skip A Pay program, requests are made online and the system automatically evaluates members for their eligibility according to your credit union’s set parameters. If they are eligible, members are informed immediately. If they are not eligible, employees are notified so they can discuss the reasons and provide alternatives for the member.

Contact us at (541) 752–5500 or info@imsintegration.com to find out how we can help your credit union and your members with Skip A Pay!

Haven’t read the first part of the Skip A Pay blog series? Read more at this link.

Did you know that Skip A Pay is one reason why many clients turn to credit unions for their lending needs? When members go through unexpected situations that lead to tight finances, knowing that their credit union allows them to skip a monthly loan payment if they meet all the conditions benefits everyone. Rewarding members who make regular payments will keep them loyal to your credit union. Skip A Pay saves your customers’ day and boosts your bottom line all at the same time.

If your credit union doesn’t offer the Skip A Pay program yet, connect with IMSI to find out how you can get started: web.imsintegration.com/contact/ or download our white paper to learn more. 

Here’s how you can make the most out of the Skip A Pay program:

Let your current members and potential clients know you offer Skip A Pay

The unfortunate reality is that many credit unions are missing out on all the opportunities where they can advertise member-focused programs like Skip A Pay. Train your Member Service Representatives to recommend the program to new members. This will encourage them to pay on time so they can benefit from this program in the future. Develop flyers, hang up posters and send out email newsletters advertising the program. Don’t make the mistake of failing to let your members know that Skip A Pay exists. If a competitor advertises it as one of their main programs, you risk losing a loyal client!

Inform them of the benefits of the program

The vast majority of us knows the feeling of dread at having to catch up on bills. These negative emotions often make their way to your financial institution, tainting an otherwise healthy relationship with your client. When life doesn’t go according to plan and members need extra funds, allowing them to skip on a monthly loan payment and use the money on something else will lead to significant returns when it comes to customer satisfaction and loyalty. To them, it’s 110% worth the small fee you’ll ask for.

With the holiday season fast approaching and back-to-school season affecting many families, your members are sweating about their bills even as the temperature drops. Whether it’s for immediate home repairs, emergency travel needs, an unexpected late salary payment or unplanned expenses, the extra cash flow makes a world of difference. 

Continue to our next blog post in this series to find out the other steps your credit union should take to fully maximize the Skip A Pay program.