1. Financial education in afp “Meeting Consumers Where They Are” Holly Windorski Easter Seals Nebraska

2. concepts  Borrowing Basics  Credit Reports & Scores  Budgeting & Saving

3. When? Most of the financial education we do takes place at the time the individual requests an application or at least prior to submitting a loan application. However, we also may work with current borrowers as issues arise or applicants who have been rejected.

4. How? Intake Questions Handouts Referral to Credit Counseling Agency

5. Prompting questions How much can you afford in a monthly payment? Budgeting Determining how expensive of an item they might consider shopping for

6. Prompting questions How much income do you currently have? Benefits planning – PASS candidate?

7. Prompting questions How much do you currently pay in monthly debt payments? Explanation of debt-to-income ratio Credit issues that need resolution Co-borrower

8. Prompting questions Do you know your credit score? Explanation of a credit score Ways to improve a credit score Co-borrower

9. Handouts “When to Use Credit and How Much You Can Afford” is distributed with every loan application packet to reinforce concepts. “Your Credit Report” may also be given depending on the circumstances.

10. Comparing loans We encourage customers to compare and get the best deal, but we educate them not to simply compare interest rates, but other fees and trade-offs such as application fees, closing costs, and rebate status.

11. Rejected applicants All rejected applicants are given ways they could improve their application and re-apply in the future, but they are also offered one free budgeting session with the local credit counseling agency.

12. Late borrowers Our banking partner notifies us weekly of any borrowers who are late on their payments. We would attempt to contact those borrowers to help resolve financial issues, including budgeting and referral to community resources.

13. Case example T’s application was rejected due to a high debt-to-income ratio, even with a co-borrower. The consumer was educated about debt- to-income ratio and ways to improve the application. Purchasing a less expensive item Increasing the down payment and/or income through PASS

14. Case example L was a young college student on SSI only. She had a low credit score (lack of credit), was not able to find a co-borrower, and had a high debt- to-income ratio. We worked with L on ways to improve her credit score and reduce her debt-to-income ratio. Increasing her down payment Purchasing a less expensive item Getting a small credit card or loan and pay as agreed over time

15. Case example M’s application was rejected because of a recent bankruptcy. During the application process, there were several trade lines on the credit report that consumer reported as errors. There was a cousin with the same name in another state. The denial from our program gave M free access to the credit report and we advised on how to dispute those errors before applying again.

16. Case example P’s application was approved. An unresolved tax lien showed up on the credit report, but the consumer submitted documentation it had been released. The consumer reported she always submitted it when she applied for credit to have the creditor disregard it, but she didn’t realize was negatively affecting the credit score. We worked with the applicant to dispute the tax lien to improve the credit score in the long-term.