CREDIT HUMAN

Next Step partnered with Common Cents Lab, a nonprofit organization created by behavioral science expert Dan Ariely, to help Credit Human (a federal credit union) improve the repayment rates of their payday loan alternative, QMoney.

CHALLENGE

People often have trouble repaying their loans because of inconsistent financial planning.

How could we use behavioral science to help increase repayment rates?

SOLUTION

We used the behavioral science concept of pre-commitment to encourage borrowers to plan their payments ahead of when they were due.

Through mailers & graphics, we prompted members to resist the urge to wait for the deadline and instead pay the money back when they had the funds. We also highlighted the difference between QMoney & payday loans using relative choices that showcase the benefits of signing on with QMoney.

DAILY LOSS VS LUMP SUM LOSS

The experiment is currently in the field.

Credit Human Postcards