Justin Zeidman is AVP of Open Banking at Navy Federal Credit Union.
They didn't have a lot of deposits on the books with us. On average we saw $700 … you're asking them to shove over 75% of their savings, just so they can establish credit. I know it's no secret secured credit isn't the most profitable place to play, but when you think about the lifetime value of being the first issuer to lend to someone — and then the value of that loyalty over the course of years and years — for us it made a lot of sense.
Late or missed payments can seriously hurt your credit score.