Qualifying

The Credit Union provides quality service to our members by offering lower costs on financial services and providing all members with the same services and the same rates. If the Credit Union is unable to approve a loan, members are entitled to and will receive an explanation of the reasons why the loan cannot be approved. The Credit Union is available to assist with budgeting and correcting credit reporting errors. Our focus is not on profits, but on fair, quality service.

Loan Officers are available at most branch offices to meet and discuss applications with members, and can usually provide an answer to the loan request the same day. The approval of an application is dependent upon the following criteria: ability to pay, credit history, collateral, and purpose.

When applying for a loan, please have the following available:

• Demographic information (address, former address, social security number, phone numbers, place of employment, length of employment, etc.)
• A recent pay-stub or two years tax returns if self employed
• A list of current debts with balances, payments, and account numbers
• A purchase agreement or bill of sale when purchasing a vehicle

Ability and Willingness to Pay

The ability to repay current and proposed obligations is critical in the decision to approve a loan.

Ability to repay is determined by the following:

• Verification of gross income¹ by either a check stub or complete tax returns
• Verification of additional income² such as child support, overtime and part-time income
• Monthly obligations and debts such as mortgage/rent payments, vehicle loans and credit cards
• Debt Income percentage³
• Disposable income⁴

The willingness of a member to repay the Credit Union is observed by past performance on SECU loans and other credit obligations. A credit report is obtained on all members requesting a loan for the first time. In addition, an updated credit report is obtained annually when additional funds are requested from SECU.

Credit history provides an insight into a member's willingness to repay obligations. If a credit report indicates bad credit⁵, the Credit Union may be able to make a loan to help improve the member's credit report. Restructuring or consolidating existing debt can make debts more affordable. The Credit Union may also help new borrowers establish a credit record.

Using Retirement as Collateral

By law, retirement funds are not assignable and may not be used as collateral. Retirement funds are on deposit with the State Retirement System and are not at the Credit Union. The only sources of funds available for Credit Union lending are the various deposit accounts of members who save with the Credit Union.

Loan Review Committee

The Loan Review Committee meets regularly to review loan application appeals submitted by Credit Union loan officers. Members of the Loan Review Committee are appointed by the Board of Directors, are members of the Credit Union, not employees, and serve without compensation. The Loan Review Committee is the final decision-making body for loan requests from the membership.

The role of this committee is to provide an impartial decision that is in the best interest of the entire membership. This process of review assures members that loan requests will receive equitable and full consideration. A member may, if desired, personally meet with the Loan Review Committee to discuss the loan requested.

In fairness to all members and as a sound business practice, employees of the Credit Union must at all times protect the assets of the Credit Union. Loans are assets of the Credit Union and loan officers are charged with the responsibility of helping members in need with good loans which mutually benefit all members. The Credit Union's lending policies and procedures are designed to limit the degree of risk associated with any loan request.