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Boat/RV Loans
Types
of Vehicles Financed:
Maximum
Financing
We finance between 65% and 108% (includes
sales tax) of the purchase price of your boat/RV. The amount of financing
is based on your credit bureau FICO score. The higher the score - the higher the amount of financing.
The "24
hour" Loan Application Process
When you're ready to buy a car -- the last thing
you want to hear is that you have to wait for approval. We
realize that--so we've streamlined the process as much as possible.
You can help us minimize the waiting time by providing the required
documents when you apply for the loan.
In addition to the loan application, we need:
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a photocopy of your: driver's license;
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a recent payroll stub; and,
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a purchase order from the dealer (If you're buying the vehicle
from a private owner, we need a signed statement listing the: make; model; year; selling
price; mileage; and all options).
Before we issue your check, we need proof of
insurance. You must
carry "Comp and Collision" for the duration of the loan (the deductible is up to
you).
The easiest way to handle this requirement is to call your insurance company
and have them fax us an "insurance binder" that lists this credit union
as the "Loss Payee". The credit union branch phone numbers and
fax numbers are listed on the "About Us" page.
Loan Approval Process:
We use risk based lending, which
includes the use of 2 national credit
bureau credit scores, as part of our 4
step evaluation process (see below)
-
One credit score measures the
likelihood of serious delinquency;
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The other credit score calculates
the likelihood of future bankruptcy.
You should be able to determine whether
your application will be approved and
for how much by reviewing the
following 4 step process that we use on
all loan applications:
Step 1: If your debt ratio is 55% or
below move to step 2:
Debt
ratio = monthly expenses divided by
gross monthly income
-
Most financial institutions use
40%. We use 55% to qualify more
members.
Step 2: If your credit history
contains less than 2 current collection
accounts move to step 3:
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Bankruptcy: All included accounts
are combined and count as 1 bad
account.
-
Note: You application may also
be disapproved if your credit
history contains an excessive number
of past collection accounts and/or
charge-offs.
Step 3: If your FICO credit score is
550 points or higher
move to
step 4.
-
Most financial institutions use 600
as a cut-off point, we dropped it to
550 to qualify more of our members.
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A valid credit score must contain 4
or more credit accounts that are at
least 1 year old.
-
Scores containing less than 4
accounts are scored at the high
risk level.
Step 4:
Once approved, the amount of financing
depends on your actual credit score and
how it fits into one of our tier levels:
-
As an estimate, if your credit
bureau risk score is:
-
Low Risk: 108% financing
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Medium Risk: 80% - 108%
(depends on risk score)Medium-High Risk :
65% - 80% (depends on risk
score)
-
High Risk: 65% financing
For Loans Financed at other Financial Institutions:
If your auto loan is financed
through another financial institution, we can help reduce your monthly payment
in two different ways:
- We can save you money on finance charges by
buying your loan. Compare our rate to the rate you’re currently paying. Even a 1%
reduction in the Annual Percentage Rate can save you hundreds of dollars in finance
charges. Think about it – you can pay yourself hundreds of dollars for about 20
minutes of your time (the time it takes to complete the application). Then add in the
convenience of payroll deduction and you’re even further ahead.
- We can reduce your equivalent monthly payment
by about 7 ½
%
with our "Payroll Direct" program. With payroll direct, you make 26
payments per year – which is equivalent to 13 monthly payments. Your loan is still
paid off in the same number of years, but the amount taken out per paycheck is about 7 ½
% less (due to the extra payment each year). That can easily translate into an extra $20 -
$30 - $40 per month.
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