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Ability to repay
Your ability to repay current and proposed obligations is critical for loan approval. We determine your ability to repay by reviewing the following:
- Your income before taxes and other withholdings and any additional available income.1
- Your monthly obligations and debts such as mortgage or rent payments, vehicle loans, and credit cards.
- Your debt-to-income ratio (your monthly debt payments each month compared to your monthly income).2
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Credit history
- We consider your payment history on any SECU loans and review your credit report to observe past performance on other credit obligations to evaluate your willingness to repay future obligations.
- A credit report that reflects late payments, judgments, accounts in collection, or bankruptcy may hinder your ability to borrow money. If this is the case, we may be able to provide you with a loan to help you pay off unpaid or past due debts and begin the process of improving your credit report. We may also consider approving a debt consolidation loan to make your monthly debt payments more manageable. If you are a new borrower, we may be able to help you establish a credit record.
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Collateral
- We assess the value of the asset securing a loan (e.g., home or vehicle) to determine the collateral’s value to the requested loan amount (i.e., loan-to-value ratio or LTV).
- You can also assign funds in your SECU Share or Share Term Certificate Accounts as collateral for some loans. Retirement funds can’t be used as collateral.
