Two credit unions are piloting a national study with the FileneResearch Institute to investigate the establishment and trajectoryof a credit score, and to devise effective ways to educate membersabout credit scores.

The $1 billion, 69-000 member Dupaco Community Credit Union in Dubuque, Iowa, and the $450million, 38,000-member Del Norte Credit Union in Los Alamos, N.M., are joining withFilene in the project by the Filene's i3 (Ideas, Innovation, Implementation) program.

“Unveiling some of the initial triggers, both positive andnegative, on a credit score could be groundbreaking for consumerswho struggle with home and car ownership, rental ability, and evenjob acquisition,” said George Hofheimer, Filene's chief researchand innovation officer.

“The insight gleaned from this study may give consumers a realstep up in the credit game, helping them establish habits that willopen the doors to better opportunities and lives.”

To assist with the study, the credit unions are taking creativesteps. For example, the Dupaco Great Credit Race will follow theuse of a VISA credit card for six months by 20 individuals who haveno established FICO score.

The goal of Dupaco Great Credit Race's is to ascertain keyvariables that affect the score's opening growth, said DavidKlavitter, Dupaco senior vice president of marketing and a memberof Filene's i3 program. Since considerable weight is put onrevolving credit for credit score determination, the Great CreditRace has made the use of a credit card the crux of theinvestigation.

Participants in the study each receive a VISA credit card with a$500 limit and are only told they must make monthly payments in atimely manner and cannot exceed the set limit. On the last day ofeach month, each credit union will do a soft pull of the creditscore via TransUnion. On the 180th day of the race, the individualwith the highest score will be deemed the winner and receive$500.

“The irony for people is that it's difficult to obtaincredit without a credit score,” Klavitter said. “In addition tounderstanding behaviors that affect an individual's score, thestudy will provide insights into more effective ways of helpingconsumers understand money.”

Other i3 credit unions contributing to the project includeElevations CU, Boulder, Colo.; Leaders CU, Jackson, Tenn.; VancityCU, Vancouver, B.C.; and Xceed Financial CU, El Segundo,Calif. Currency Marketing of Chilliwack, B.C., is providingmarketing support and guidance.