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The Basics
We
offer personal loans for a variety of
reasons. The maximum amount is
$15,000.00 with up to 60 months to
repay. The rate of interest ranges from
7% to 15% Annual Percentage Rate (APR).
Your rate depends on the term and your
individual risk factor. The rates are
as follows:
Loan Application
You may apply for your loan in person or
use our "secured" online loan
application. It's fast--it's safe--and
it's easy. To use the online loan
application, simply "click
here" or click on the "Online
Loan Application" quick click above.
Rates Last
Updated:
08/19/08
|
Risk Category |
Borrow up to |
36 months |
48 months |
60 months |
|
A
(lowest risk) |
$20,000 |
8% |
9% |
10% |
|
B |
$20,000 |
9% |
10% |
11% |
C
(most applicants) |
$7500-$15,000 |
11% |
12% |
13% |
|
D |
$5000 |
14% |
|
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|
E |
$5000 |
16% |
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Loan Approval Process:
(Click Here to
download a PDF copy of the step-by-step
procedures that we use when evaluating a
loan application)
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).
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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:
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Debt
ratio = monthly expenses divided by
gross monthly income
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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.
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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.
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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.
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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:
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Low Risk: borrow up to $15,000
for 60 months
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Medium Risk: borrow up to
$10,000 for 60 months
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Medium-High Risk : borrow up to
$5000 for 36 months
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High Risk: borrow up to 100% of
your gross monthly income
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