No one at this point remains unaware of the devastating effects, financial or otherwise, COVID-19 has left in its wake after merely eight months. We find ourselves dealing with social distancing, wearing masks, and the all-too-natural urge to wade into the uncertain waters of public spaces during these hot summer months.
The fact is, no one wanted to deal with a global pandemic, lose jobs to furlough or layoffs, or have their employers lose their businesses. It’s enough that the world has turned upside down as our family and friends are running out of money and need financial help, credit is getting tight, and credit scores are dive-bombing. Financially, we’re in uncharted waters, and the first thing members need to do is examine and make potential alterations to their cash flow strategy.
Don’t mistake cash flow with managing a budget, however. A budget simply looks at one’s monthly expenses. Managing cash flow entails managing money both coming in and going out to various holdings. QCash Financial takes cash flow further than that. Part of our definition of financial wellness, health, and literacy stems from not only managing one’s money, but knowing how to use it in the most efficient and useful manner possible. The beginning, though, lies in evaluating how money flows through members’ account assets.
Part of understanding one’s cash flow is managing due dates and required payments. Even if there’s enough to cover expenses, but not enough by the bill’s due date, it’s a cash flow issue. In that all-too-common situation, there’s a good possibility members may be able to work with creditors to adjust the due dates in order to get those bills paid on time. After that, it’s always a good idea for members to automate bill pay, thereby gradually improving their consistency and their credit score.
Improving a member’s credit score enables consumers to accomplish so much more in their lives. Simple concept: when members pay their credit card bills on time, their credit score improves, allowing for future loans like home and auto, lower insurance rates, apartment rentals, and positive employer credit checks. Building good credit even comes with perks; as members spend money with their credit cards they can earn airline miles, cash, discounts, or points for any number of other benefits.
When members are successful at managing their cash flow, it boomerangs back around to your credit union. Now you can offer those members better programs, advantages, products, and services, thereby generating more revenue. It’s a win-win. This circular system promotes healthy financial growth for the credit union and the member, and increased retention and loyalty as the years go on.
Through QCash Financial’s partnerships with credit unions in America and Canada, our mobile lending platform offers a Loan Pay-Off feature that enables your members to get ahead in their journey to financial health and security. For more information about QCash Financial’s Loan Pay-Off program, or to learn more about financial wellness, feel free to connect with us through our website here. We hope to hear from you!