| You
are interested in applying for a loan, but not sure how the process works. Do
you need to fill out an application in the office? Online? If you come in the
office are you supposed to bring Identification? What can you expect if you come
in? The following information should help prepare you for what to expect, and
help you understand the loan application process.
Determine What kind of Loan
do you need?
Are you looking to do home repairs? Or buy
a new car? Refinance your mortgage? Purchasing a computer, or looking to take a
vacation? Debt consolidation? There are many reason why you may need a loan, but
you might not be sure what TYPE of loan is best for you. You want a low interest
rate, and affordable payments. It's our job to help you find the right loan,
with the lowest rate, that fits your needs. (For a listing of the types
of loans we offer and a description of each, click
here.)
The first step is to fill out
a loan application
You may fill out an application online (CLICK
HERE), come into one of our
offices,
or call and ask to give an application over the phone. No matter which way you
contact us, we will need to know some basic information about you, such as:
Where do you live? Where do you work, and for how long? Your social security
number, and phone number. We will also need to know who else you have loans or
credit cards with, and if you own any collateral (a car, boat, or a home).
Collateral is any large ticket item you own outright, and do not owe anyone
money for. We also need to know the amount of money you need, and if you are
purchasing a car, a buyers order may be asked for. If you are just interested in
being Pre-Approved before you shop for a car, you can just write "Pre-Approval
for car loan" on the application. Make sure to fill in as much as possible, for
that speeds up the application process.
After you fill out the application online,
or in the office, you can do one of two things; 1. You may call or stop by to
speak to a Loan Officer about your application or, 2. Wait for a Loan Officer to
call you (which they will on the nest business day).
When the Loan Officer calls
You will need to be prepared to answer a
few questions. He or she might not have an answer for you right away, so be
patient and try to answer their questions as fully as possible. Some of the
types of questions they may have are:
- Do you want GAP insurance?
- Do you want Payment Protection? (Credit
Life and Disability insurance)
- How much do you want to borrow?
- What is the purpose for the loan (new
car? boat?)
- How long have you lived in your home?
- How long have you worked at your job?
- Do you have any dependents?
- Can you provide two references?
When they call you to give you an answer,
they will need to explain why they made the decision they did, and what you need
to expect, such as when the payments are due, what rate you will be charged, and
the different ways you can repay your loan.
Payments are normally due:
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Automatic payments debited from your checking
or savings account are due on the 5th or 15th of each month. |
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Payments deducted form school payroll are due
on the 15th and 30th of each month. (Your payment is split in two, and paid out
each pay period). |
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Cash payments are due either on the 5th,
15th, 25th, or 30th of each month.* |
*Other options are available. Ask your
Loan Officer for details.
The rate you pay is based on your credit
history. For information on credit reports, and how it effects your rate,
click here. To review our current loan rates
click here.
There are several easy ways
for you to make loan payments
The easiest and safest way to pay on your
loan is through Payroll Distribution. This method deducts your payment directly
from your paycheck, each time you are paid. The benefits are your payment
is made on time each time, and you don't have to mail in one. This method
assures the credit union you will pay your loan payment each month, and can even
help you get a rate reduction on your loan. *Ask about Apple Advantage!
Another way you can make payments is to
transfer the monies from your savings or checking account to your Loan on our
home banking website, SmartLink (click
here). SmartLink is a free service you can access from any computer. For
more information on SmartLink click here.
You may also send in payments using a
coupon book. We will send you a booklet in the mail. Each month, you tear out
the coupon and send it along with a check or money order to the credit union, or
you may bring it in and pay your loan at the teller line/drive through.
After the Loan Officer discusses their
decision with you, you may need to come into the credit union and sign some
paperwork. The greatest benefit of using your credit union for loans is that
once you sign our loan paperwork, you may never have to fill out another loan
application again! You may just call or stop by and tell us what you need to do,
and we will pull your credit report, verify your information, and be able to
make a quick decision.
What happens if I am denied a
loan?
If you are denied a loan, we will always
show you why. The reason why you may be denied is because of derogatory
information in your credit report. It is very difficult for a Loan Officer to
approve a car loan, if in the past you skipped payments or made late payments on
an existing car loan. Another reason why you may be denied is because you are
over extended, which means you have more bills coming in than income. We have to
make sure you have the ability to repay our loan, and if you have too many bills
how can we ensure you will be able to pay handle a new one? Your Loan Officer
will discuss these reasons with you, and will counsel you on what you will need
to do, to be approved for a loan in the future. Please review information on
credit, and what determines credit scores
here.
*Apple
Advantage* Are you taking
advantage of the Apple? Qualify for a .25% decrease in your loan rate by signing
up for direct deposit, a checking account, Visa Check Card, and have a combined
$6000 in loans with VBSFCU**. *Not
applicable to Visa credit card or Mortgage loans **New loan applies. May
combine Visa Credit Card balance.
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