What is required to apply for a loan from any credit union?
Anyone can apply for a loan, though to be approved for a loan there are requirements.
First, you have to be a member, with one full share ($10) on deposit. Federal law requires CU’s to deny loans to those who are not members. You can join and apply for a loan on the same day, so it’s easy !
Next complete a loan application form and pay the application fee. “Complete” is a very important requirement that applies to everyone, except those who are borrowing against their own savings’ balance. List all of your phone numbers, sources of income, *bills, and financial responsibilities. Then sign and date your application then turn the form in at the CU office.
*Bills and depts. You are required to list on your loan application are defined by our CU as:
- Housing costs (rent or mortgage plus taxes and insurance)
- Contractual depts. Such as loan and lease payments
- Payments on loan(s) the applicant(s) cosigned or guaranteed
- Rent-to-own furniture or appliance payments
- Electronic payments (automatic deductions) if these are financing purchases
Debts do not include phone, cable, or utility payments unless they are past due; then the amount to repay the past due amount is included.
Proof of income sources must accompany your loan application. Our CU treats all income sources of income the same: it does not matter if it comes from a job, self-employment, retirement, savings/investments, or public assistance though we do ask that you document how much you receive, how often, and for how ling into the future you expect it. Ask a CU member Service Representative (MSR) if you have questions on what types of income documentation are required.
The credit union staff will get back to you with one of these responses:
- Yes, your loan is approved as requested
- No, we cannot make the loan you requested, with a list of all the reasons
- A counter offer, which is a loan with different terms than you requested.
There is an alternative, not final, response: “We found information missing or does not match what is on your application. Please explain and complete the application and return it to the CU.” Applications not fully completed are denied automatically 30 days after they are received, as required by law.
Loan repayment consequences
What is expected from borrowers who borrow from Northern Eagle Federal credit Union?
Obviously all borrowers are expected to repay the money as agreed with periodic, timely payments. If a problem occurs it is much better to contact the CU before a missed payment to learn what options you might have.
Yes, there will be late charges added to your payment amount if it is late. Your loan documents detail how much your late fee will be, as well as any grace days before the late fee is charged. We do not want your late fee. We really want you to make your payments on time.
Your repayment history is reported to Credit Reporting Bureaus. Your payment history comes right from your account activity data, so be sure to let a MSR know if you find any difference in posted payments on your statement.
If a borrower does not repay their loan on time the credit union’s policies require collection activities which may include repossession of the collateral, asking a co-borrower to make the payments, or filing suit in Tribal or another court. The latter can lead to court ordered payments from your paycheck, your accounts or your Per Capita Payment.
Because a credit union makes loans with the saving dollars deposited by members and supporting organizations – and these people have the right to withdraw their savings – any borrower who is slow to repay hurts the credit union’s ability to lend to others, as well as being able to provide fairly priced services to anyone.
There are other financial management services and education offered to all members: some might be better for you than a loan. Please ask about a MSR all available options to you!
What types of loans does our credit union make?
- Signature or Unsecured Loans
- Share Secured Loans – match by your savings balance
- Secured Loans by a vehicle or other title
- Credit Builder Loans
- Anti-Predatory (Emergency) Loans – small short term loans